OJK Regulates Foreign Workers Within the Banking Sector

The Financial Services Authority (“OJK”) has issued Regulation No. 37/POJK.03/2017 on the Employment of Foreign Workers and the Transfer-of-Knowledge Program Within the Banking Sector. (“Regulation 37/2017”). Regulation 37/2017 aims to accommodate the needs of experts across the banking sector due to recent increases in foreign investment within this specific sector. [1] Prior to the issuance of Regulation 37/2017, these same matters were regulated under Bank Indonesia(“BI’)Regulation No. 9/8/PBI/2007 on the Employment of Foreign Workers and the Transfer-of-Knowledge Program Within the Banking Sector. (“Regulation 9/2007”).This new regulation basically makes no alteration to any of the provisions which were originally set out under Regulation 9/2007. However, the authority to regulate and supervise financial services across the banking sector has now been transferred from BI to the OJK. Thus, our discussion of Regulation 37/2017 will address the following matters: