The Influence of the Nitaqat Program and the Saudi Nationality Decree on the Intention to Stay of Indonesian Professional Workers in Saudi Arabia Mediated by Remuneration and Moderated by the Expatriate Residency System in Saudi Arabia

Abstract

This study examines the influence of the Nitaqat Program and the Saudi Nationality Decree on the decision of Indonesian professional workers to remain working (Intention to Stay) in Saudi Arabia, by considering the mediating role of remuneration and moderation of the expatriate residency system. This study will be conducted using quantitative methods. The results of this study found that the Nitaqat Program has a significant negative effect on Intention to Stay (path coefficient: -0.256, t-statistic: 3.72, p-value: 0.000). In contrast, the Saudi Nationality's Decree has a significant positive effect (path coefficient: 0.354, t-statistic: 4.072, p-value: 0.000). Nitaqat Program has no significant effect on remuneration (path coefficient: -0.033, t-statistic: 0.52, p-value: 0.603), while Saudi Nationality's Decree has a significant positive effect (path coefficient: 0.659, t-statistic: 12.823, p-value: 0.000). Competitive remuneration has a significant positive effect on Intention to Stay (path coefficient: 0.198, t-statistic: 2.456, p-value: 0.014). Remuneration does not mediate the effect of the Nitaqat Program on Intention to Stay (path coefficient mediation: -0.006, t-statistic: 0.492, p-value: 0.623), but mediates some of the effects of Saudi Nationality's Decree (path coefficient mediation: 0.130, t-statistic: 2.441, p-value: 0.015). The expatriate residency system has a significant moderating effect on the relationship between remuneration and Intention to Stay (moderation path coefficient: -0.148, t-statistic: 2.056, p-value: 0.040).