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Abstract

Remittances Flows are a source of finance for a country. The impact of net remittances for a country is very important in times of crisis or when the country's sources of financing are very thin. India and the Philippines are the best examples where the contribution of remittances to their countries is very crucial. Remittances are the prima donna for sources of financing for a country when sources from international donor agencies experience difficulties. Remittances have become a saving factor when the world is in a crisis. India, Bangladesh and Pakistan in South Asia, the Philippines in Southeast Asia, Mexico in Latin America and Egypt in the Middle East are the best examples of countries that accommodate their citizens to become workers in foreign countries, which has an impact on net remittances for the country. This research more or less finds that the state's contribution to increasing the sending of workers to foreign countries as well as increasing their level of expertise is the best contribution to both increasing net remittances. Net remittances are also the biggest contributor to increasing a country's credit rating, when other sources of funding such as FDI, ODA, Private Portfolio and others experience difficulties. Indonesia must improve the entire infrastructure related to the quality of the workforce that will be sent to foreign countries. A large number if not supported by an increase in skilled would even be a threat and even a burden to the country in the future. For this reason, an increase in skilled skills and other facilities for Indonesian workers abroad is a necessity.

Keywords: remittances, Indonesia rating, The Emerging Countries