OJK New Rules Extend Foreign Worker Employment Period for Executive Officials to Five Years

JAKARTA — The Financial Services Authority (OJK) has introduced new regulations regarding the use of foreign workers (TKA) and knowledge transfer programmes by national commercial banks through OJK Regulation (POJK) Number 1 of 2026, which becomes effective on 23 February 2026.

M. Ismail Riyadi, Head of the OJK’s Department of Financial Literacy, Inclusion and Communication, stated that the new regulation extends the employment period for foreign workers in Executive Officer and Expert or Consultant positions to a maximum of five years, with the possibility of extension based on OJK consideration.

This extended timeframe represents a substantial increase from the previous regulation, which limited foreign worker employment in these positions to three years with a single one-year extension.

Riyadi further explained that POJK also introduces additional positions requiring specialised competencies for commercial banks in which more than 25 per cent of shares are held by foreign nationals or foreign legal entities, subject to OJK approval.

The regulation emphasises that banks employing foreign workers must assign Indonesian staff abroad to gain international experience and develop international competencies. Such assignments can be conducted through talent exchange schemes, including secondment programmes and intra-corporate transferees on a continuous basis.

According to Riyadi, the new regulation aims to strengthen the governance of foreign worker utilisation in the banking sector and ensure that knowledge transfer programmes to Indonesian workers are implemented optimally.

“These provisions are designed to ensure that the use of foreign workers in the banking sector provides added value for developing national human resources competencies through structured knowledge transfer mechanisms,” he explained.

The new policy was formulated considering banks’ demand for foreign workers, taking into account the characteristics and complexity of banking operations, each bank’s strategic direction, and promoting knowledge transfer from foreign workers to Indonesian staff in the banking sector.

The OJK also considered the increased integration of global banking activities, which drives cross-border labour mobility and financial transfers between financial institutions. This development creates opportunities for Indonesian banking workers to gain experience and assignments at the international level.

Additionally, the authority considered the need for harmonisation and alignment of foreign worker regulations with current regulatory developments.