AFRISCA AZUMANUL HAKIM, Analysis of Compensation System Based on Job Value of Indonesian Migrant for Cooks Job Cluster in Kuala Lumpur, Malaysia. Advised by LINDAWATI KARTIKA and ZURAINA DATO’ MANSOR.

ASEAN Economic Community (AEC) is an economic integration agenda from ASEAN member states that aims to reduce economic barriers among Southeast Asian states which ensures the free flow of investment, capital, skill workers, goods and services in 10 ASEAN member states. Ministry of Manpower of Republic of Indonesia’s regulation No.1/2015 mentioned about the change of the classification of 7 informal working fields to formal work on migrant workers, one of which is cooking job. According to BNP2TKI (The National Institution of Indonesian Migrant Placement and Protection) Indonesian informal migrant workers is defined as people working abroad for individual employer without law body which leads to subjective working relations and vulnerability to problems, so that later the Indonesian migrant workers who work in the informal sector or for non-legal entity will be transferred to work at the employers who have legal entities. Indonesian cooks is a kind of job that has a great potential to be developed, considering the high enthusiasm for Indonesian dishes in Malaysia and the popularity of Indonesian food's taste in the world. In this recent times, Ayam Penyet, the typically dishes of Java has a great demand by the people of Malaysia.  Ayam Penyet dishes even have become a franchise business with many different brands such as Ayam Penyet AP which has 26 outlet branches in Malaysia and Ayam Penyet Ria which has 9 outlet branches in Malaysia, and many more Ayam Penyet brands in Malaysia (antaranews.com, 2011 and finance.detik.com, 2014). Based on  Ministry of Manpower's regulation No.1/2015, cooks is one of the jobs which will be enhanced from informal to the formal sector, so later Indonesian cooks will work with employers who incorporated in legal entities.

This research aims to identify the condition of compensation system currently applied to Indonesian Migrant for cooks job cluster in Kuala Lumpur, analyze compensable factors, and analyze the ideal compensation system that should be applied. Data used in this research is primary data by distributing questionnaire to experts and Indonesian cooks at home industry level and secondary data (literature study) with studying and analyzing data from Embassy of Republic of Indonesia in Malaysia, data and regulations of Ministry of Manpower of Republic of Indonesia and BNP2TKI, related books, internet, thesis, and journals. This research used descriptive analysis, salary mapping analysis, point system method, and linear regression test in order to process the data.

The result of the research shows (1) The salary increase for each job position of Indonesian migrant workers at Cooks job cluster for home industry level in KL is not too extreme, but the respondents’ salary distribution are considerable enough for every job level in cooks job cluster and the existence of salary levels in several positions which are not hierarchical cause the compensation condition of Indonesian migrant workers at Cooks job cluster in KL has not been ideal entirely; (2) The compensable factors or the order of factors which became the basis determination of salary on Indonesian migrant workers at Cooks job cluster for home industry level in KL are knowledge and skill, organizational capabilities, self reliance, self presentation, responsibility of supervising, responses to critics, and the influence of work result; (3) The ideal compensation system for Indonesian Migrant Cooks in KL is non classification system based on Hay Plan Method, which the required funding is more efficient with the amount of RM 4,036.99 or about Rp.12,918,368.00 for 7(seven) shops that employ Indonesian cooks which identified in under paid condition.

Keywords: Compensation System, Indonesian Migrant Workers, Job Value