Indonesian immigrant settlements in peninsular Malaysia

For over 2 decades, until the economic crisis in mid-1997, Malaysia's rapid economic growth attracted an influx of foreign labor, mostly from Indonesia, Bangladesh, and the Philippines. In 1997 the number of registered workers was estimated at 1.2 million and undocumented ones at approximately 800,000. The influx created various problems, of which housing is one of the most serious, especially in the Kelang Valley. This paper examines the ways and means by which Indonesian workers, the largest group among foreigners, overcame their accommodation problem. Two types of settlements are identified, that is, illegal ones in the squatter areas and legal ones, which are largely in Malay Reservation Areas. The settlements, which signify Indonesians' success in finding a foothold in Malaysia, today have become a base for more in-migration.