DENPASAR, DEWATA.NEWS – Indonesia’s Financial Services Authority (OJK) has issued a new regulation governing the use of foreign workers in the banking sector, aiming to strengthen governance while ensuring structured knowledge transfer to Indonesian professionals.
The policy is outlined in Financial Services Authority Regulation (POJK) No. 1 of 2026 on the Use of Foreign Workers and Knowledge Transfer Programs in Commercial Banks.
The regulation was introduced to ensure that the employment of foreign professionals in banks contributes to the development of national human resources through structured training and knowledge-sharing mechanisms.
Under the new rules, banks may employ foreign workers in certain positions, but the arrangement must be aligned with the bank’s operational complexity, strategic direction, and governance requirements.
The regulation also reflects increasing global integration in the financial sector, where cross-border mobility of professionals and knowledge exchange between financial institutions has become more common.
Authorities say this trend provides opportunities for Indonesian banking professionals to gain international exposure and experience through global assignments.
One of the key provisions sets a maximum employment period of five years for foreign workers serving as executive officers, experts, or consultants in banks.
Extensions beyond the five-year period may be granted, but only with approval from OJK after reviewing the bank’s operational needs and compliance with knowledge transfer requirements.
The regulation also allows additional specialized positions to be filled by foreign workers in banks where more than 25 percent of shares are owned by foreign individuals or foreign legal entities. However, such appointments still require regulatory approval.
To strengthen knowledge transfer, banks that employ foreign professionals must also send Indonesian employees abroad for professional assignments aimed at improving skills and international experience.
These assignments may take the form of talent exchange programs, including secondment arrangements or intra-corporate transfers within global banking networks.
OJK stated that the implementation of these international assignments will also be considered when evaluating requests to employ foreign workers, including approvals for extended employment periods.
The regulation came into effect on February 23, 2026, replacing OJK Regulation No. 37/POJK.03/2017, which previously governed the use of foreign workers and knowledge transfer programs in Indonesia’s banking sector.
Further information, including frequently asked questions and supporting materials, is available through OJK’s regulatory information system (SIKEPO).