SUNDAY, JULY 5, 2026|No. 5884
Business · Labor · Policy

Germany's Foreign Worker Retention Issues Provide Lessons for Indonesia

A recent report reveals that 32% of foreign workers leave Germany due to bureaucracy, highlighting challenges that Indonesia should heed in its own labor market.

A comparison of foreign worker retention strategies between Germany and Indonesia.
A comparison of foreign worker retention strategies between Germany and Indonesia.
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Lessons from the Case of Foreign Workers in Germany

PHENOMENON of foreign workers leaving Germany as reported by the Institut für Arbeitsmarkt- und Berufsforschung (June 2026) is not merely a migration statistic. It is a loud alarm about the failure of a developed country to retain the skilled labor it desperately needs. When bureaucracy is convoluted, discrimination is rampant, and access to housing and careers is not guaranteed, then Germany loses its attractiveness.

Transit Country

Indonesia is now on the same path: Receiving waves of foreign workers, whether they come to work, marry, or simply settle. If not anticipated, Indonesia could repeat Germany's mistake: Becoming a transit country, not a permanent destination for global talent. As a German alumnus who lived there for six years for study, and repeatedly returned to Germany to teach, attend conferences, and conduct comparative studies—experience that totals more than ten years—I have a deep understanding of the condition of foreign workers there.

The situation experienced by foreign workers is not just theory, but a visible reality: Slow bureaucracy, real discrimination, and a sense of alienation that is hard to erase.

Long experience in Germany shows that even a developed country can lose its attractiveness if it does not seriously build a retention ecosystem. Indonesia has a great opportunity to learn from that failure and make it a foundation for a stronger future.

Bureaucracy and Discrimination

Germany, with its reputation as an industrial hub in Europe, has apparently not succeeded in overcoming slow and discriminatory bureaucracy. Complicated and costly residence permit processes, convoluted diploma recognition, and unfair treatment at government offices make foreign workers feel unwanted. Indonesia must learn from this failure. When foreign workers enter the technology, energy, and education sectors, is it ready to provide them with fast, transparent, and bribe-free administrative pathways? Or will it instead ensnare them in a labyrinth of work permits, KITAS, and absurd diploma recognition? Covert social discrimination is an equally serious factor. If Indonesia allows xenophobic narratives to grow, social integration will completely fail. Foreign workers who should strengthen the nation's competitiveness will instead feel alienated.

A quote from the report by Yosyakova and colleagues from the IAB confirms that 32 percent of foreign workers leave Germany due to complicated bureaucracy.

PAN's pipeline reviewed approximately 1 open sources for this article. No human editor reviewed this article before publication.

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