Indonesia’s Financial Services Authority (OJK) issued a new regulation on the use of foreign workers and knowledge-transfer programmes by commercial banks, aiming to tighten governance over foreign staffing while ensuring structured transfer of expertise to Indonesian employees. The regulation caps the use of foreign workers in Executive Officer roles and as experts or consultants at a maximum of five years, with possible extensions subject to OJK consideration. It also provides for additional specialist roles requiring specific competencies at commercial banks with more than 25% foreign ownership, but only with OJK approval. Banks that employ foreign workers must assign Indonesian staff abroad to build international experience and competencies through ongoing talent-exchange arrangements such as secondments and intra-corporate transferees; implementation of these overseas assignments becomes a factor in OJK’s decisions on approvals for foreign workers in certain positions outside the executive officer and expert/consultant categories, including tenure-setting and extensions beyond five years. The regulation took effect upon promulgation on 23 February 2026, with supporting FAQs and outreach materials made available through OJK’s SIKEPO platform.
OJK 2026-03-11
Indonesia’s Financial Services Authority sets five-year limit for foreign banking staff and strengthens knowledge-transfer requirements
Indonesia’s Financial Services Authority (OJK) issued a regulation limiting foreign workers in Executive Officer roles and as experts or consultants to five years, with extensions subject to OJK approval. The regulation mandates knowledge-transfer programmes and requires Indonesian staff to gain international experience through talent-exchange arrangements. It applies to commercial banks, especially those with over 25% foreign ownership, effective 23 February 2026.