30 March 2020 (closed)
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Indonesia’s financial authority, the OJK, has recently issued regulation no. 37/POJK.03/2017 on the Employment of Foreign Workers and Knowledge Transfer within the Banking Sector (New Regulation). The New Regulation replaces Bank Indonesia regulation number No. 9/8/PBI/2007 on the Employment of Foreign Workers and the transfer of knowledge program Within the Banking Sector. In this column we discuss the available job titles for foreign workers, the application requirements and the transfer of knowledge program.
Available Job Titles
Banks are allowed to hire foreign workers for the following job titles:
- Directors; available for banks with foreign share ownership
- Commissioners; available for banks with foreign share ownership
- Executive Officers; available for banks with more than 25% foreign ownership
- Experts or Consultants; available for:
- banks with foreign share ownership
- Branch offices of foreign banks
- Representative offices of foreign banks
- Heads of Representative Offices
- Heads of Branch Offices
When applying for a job title for a foreign worker, the sponsor company and foreign worker are required to fulfill the specific requirements set by the OJK. Once these requirements are fulfilled, the OJK will issue a recommendation. This recommendation must be attached to the application at the Ministry of Manpower, in order to secure a work permit (IMTA).
Transfer of Knowledge Requirement
Banks need to implement a transfer of knowledge program in case they hire foreign workers as Executive Officers, Experts or Consultants. The transfer of knowledge program must at least follow the below minimum requirements:
- Appointment of two Indonesian labor companions for each foreign worker;
- Job training and education for the labor companions; and
- Training program provided by the foreign worker.
These transfer of knowledge programs need to be reported on annual basis to the OJK.
The New Regulation has been in force since July 12, 2017.
This column is provided by PNB Immigration Law Firm Indonesia