{
    "success": true,
    "data": {
        "id": 1605033,
        "msgid": "ojk-new-rules-extend-foreign-worker-employment-period-for-executive-officials-to-five-years-1773222720",
        "date": "2026-03-11 15:50:20",
        "title": "OJK New Rules Extend Foreign Worker Employment Period for Executive Officials to Five Years",
        "author": "Aprillia Ika",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Regulation",
        "summary": "Indonesia's Financial Services Authority (OJK) has implemented new regulations extending the maximum employment period for foreign workers in executive and expert positions at national commercial banks from three years to five years, effective 23 February 2026. The regulation also mandates that banks employing foreign workers assign Indonesian staff abroad for international experience through talent exchange schemes and intra-corporate transfers, ensuring structured knowledge transfer to develop domestic human resources in the banking sector.",
        "content": "<p>JAKARTA \u2014 The Financial Services Authority (OJK) has introduced new\nregulations regarding the use of foreign workers (TKA) and knowledge\ntransfer programmes by national commercial banks through OJK Regulation\n(POJK) Number 1 of 2026, which becomes effective on 23 February\n2026.<\/p>\n<p>M. Ismail Riyadi, Head of the OJK\u2019s Department of Financial Literacy,\nInclusion and Communication, stated that the new regulation extends the\nemployment period for foreign workers in Executive Officer and Expert or\nConsultant positions to a maximum of five years, with the possibility of\nextension based on OJK consideration.<\/p>\n<p>This extended timeframe represents a substantial increase from the\nprevious regulation, which limited foreign worker employment in these\npositions to three years with a single one-year extension.<\/p>\n<p>Riyadi further explained that POJK also introduces additional\npositions requiring specialised competencies for commercial banks in\nwhich more than 25 per cent of shares are held by foreign nationals or\nforeign legal entities, subject to OJK approval.<\/p>\n<p>The regulation emphasises that banks employing foreign workers must\nassign Indonesian staff abroad to gain international experience and\ndevelop international competencies. Such assignments can be conducted\nthrough talent exchange schemes, including secondment programmes and\nintra-corporate transferees on a continuous basis.<\/p>\n<p>According to Riyadi, the new regulation aims to strengthen the\ngovernance of foreign worker utilisation in the banking sector and\nensure that knowledge transfer programmes to Indonesian workers are\nimplemented optimally.<\/p>\n<p>\u201cThese provisions are designed to ensure that the use of foreign\nworkers in the banking sector provides added value for developing\nnational human resources competencies through structured knowledge\ntransfer mechanisms,\u201d he explained.<\/p>\n<p>The new policy was formulated considering banks\u2019 demand for foreign\nworkers, taking into account the characteristics and complexity of\nbanking operations, each bank\u2019s strategic direction, and promoting\nknowledge transfer from foreign workers to Indonesian staff in the\nbanking sector.<\/p>\n<p>The OJK also considered the increased integration of global banking\nactivities, which drives cross-border labour mobility and financial\ntransfers between financial institutions. This development creates\nopportunities for Indonesian banking workers to gain experience and\nassignments at the international level.<\/p>\n<p>Additionally, the authority considered the need for harmonisation and\nalignment of foreign worker regulations with current regulatory\ndevelopments.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/ojk-new-rules-extend-foreign-worker-employment-period-for-executive-officials-to-five-years-1773222720",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}