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Labour market access
Regulation 37/2017 by the Financial Services Authority (OJK) introduces new restrictions on hiring foreigners in the banking industry.
According to article 4 of the regulation, foreigners are allowed to only perform in "certain areas of work" (para.1). Paragraph 2 of that article further states that the "utilization of Foreign Workers in the field of duties other than specific tasks as referred to in paragraph (1) may only be made after obtaining prior approval from the Financial Services Authority." This approval "shall be used as a basis for recommendation of the use of Foreign Workers by the Bank to the agency in charge of the manpower field." (para. 3; own translation)
Article 5 prohibits hiring foreigners in the areas of Human Resources and Compliance. Furthermore, "Banks are required to submit plans for utilization of Foreign Workers to the Financial Services Authority" and include these plans "in the Business Plan of the Bank." (art.6; own translation)
Article 7 further requires an additional approval from OJK when hiring foreigners at the position of Board of Directors, Board of Commissioners, or Executive Officer. The following article further specifies that foreigners sitting at the BOD or BOC must "have knowledge about Indonesia, especially about the economy, culture, and Indonesian language." (own translation)
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