makan2 prof tina

 

Remittance

 

Remittance refers to money that is sent by someone (usually a worker or migrant) to another person, typically family members, in their home country.

Simple definition

Remittance = money sent from abroad to support people back home

Common example

• A worker from Indonesia working in Taiwan sends part of their salary to their family in Indonesia → that money is called a remittance.

Key characteristics

• Sent across borders (international remittance), though it can also be domestic

• Usually sent regularly (monthly, weekly)

• Used for daily needs: food, education, healthcare, housing

Why remittances are important

• Support household income and reduce poverty

• Contribute to national economies (foreign exchange)

• Help pay for education and health services

• Often more stable than foreign aid

Common channels

• Banks

• Money transfer services (Western Union, MoneyGram)

• Digital platforms (mobile banking, fintech apps)

In academic or economic context

Remittance is often discussed in:

• Migration studies

• Development economics

• Globalization and labor mobility

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