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09 February 2018
The Financial Services Authority (OJK) has issued Regulation 37/POJK.03/2017 which introduces rules for the employment of expatriates and the transfer of knowledge in the banking sector. Regulation 37 revokes Bank Indonesia Regulation 9/8/PBI/2007. Key provisions include the following:
Regulation 37 maintains the rules set out previously in Regulation 9 regarding roles that may be filled by expatriates, including the prohibition on expatriates being employed in human resources roles, as follows:
In certain circumstances, banks in the second and fourth categories above may employ expatriates in other roles for a maximum period of one year (Article 16(2)), subject to approval by the OJK.
One week after the issuance of Regulation 37, the OJK issued Circular Letter 42/SEOJK.03/2017 which provides further details of the requirements and mechanisms for the employment of expatriates and the transfer of knowledge in the banking sector.
Circular 42 also provides that expatriates may be employed in banking sector roles related to:
By introducing Regulation 37 the OJK appears to be helping to promote foreign investment by allowing expatriates to occupy key roles in the banking sector, while encouraging them to share their skills and knowledge with their Indonesian colleagues.
For further information on this topic please contact Rully Hidayat or Priscilla Rotua Manurung at Ali Budiardjo, Nugroho, Reksodiputro by telephone (+62 21 250 5125) or email (firstname.lastname@example.org or email@example.com). The Ali Budiardjo, Nugroho, Reksodiputro website can be accessed at www.abnrlaw.com.
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Priscilla Rotua Manurung