Diplomacy, migration, and employment: The historical approach to Malaysia-Indonesia relations

Abstract

Malaysia and Indonesia share long-standing diplomatic relations rooted in common historical, cultural, and linguistic ties, which have fostered cooperation in economic, political, security, educational, and sociocultural affairs. This study examines the economic dimension of these relations, focusing on labor migration. Rather than measuring changes in migration flows, it adopts a historical approach that interprets Memoranda of Understanding and irregular migration issues as instruments of migration diplomacy. Indonesia remains the largest source of migrant workers in Malaysia, helping to address labor shortages in the 3D sectors—dirty, dangerous, and difficult—while remittances contribute to Indonesia’s economy. However, disputes over Memoranda of Understanding and the persistence of irregular migration (pendatang asing tanpa izin, or illegal foreign migrant) have at times created diplomatic tensions. Despite these challenges, both governments consistently demonstrated a commitment to resolving issues through dialog and cooperation. Historical ties continue to provide a vital foundation for sustaining Malaysia-Indonesia relations and for strengthening their ability to address migration-related conflicts constructively.

Keywords

Diplomatic / Migration / Foreign workers / Malaysia / Indonesia

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