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Steps Hiring Expatriate for Financial Services Industry

“OJK has a specific requirement in hiring expatriate for the Financial Services Industry, both Banking and Non-Banking.”

The promulgation of Government Regulation No. 24 of 2018 concerning Electronically Integrated Business Licensing Services (“GR 24/2018”) has enforced efficiency procedural of business licensing into one electronic integrated system. GR 24/2018 stipulates Online Single Submission (“OSS”) that provided business licensing facilities including but not limited to Foreign Workers Recruitment Plan (“Rencana Penggunaan Tenaga Kerja Asing” or “RPTKA”). RPTKA is one of the substances required for the foreign worker (“expatriate”) and the employer of expatriate (“sponsor company”) during expatriate’s employment period in Indonesia. However, the not entire business sector could obtain business licensing facilities including RPTKA through OSS.

Elucidation of Article 85 GR 24/2018 has stipulated that business licensing including RPTKA for banking and non-banking are conducted outside OSS by Financial Services Authority (“Otoritas Jasa Keuangan” or “OJK”) or Bank Indonesia following laws and regulations. Concurrently in practice, accordance to, RPTKA still conducted through (“TKA Online”) that stipulated under Regulation of Ministry of Manpower Number 10 of 2018 concerning Procedures for Recruitment of Foreign Workers (”RM 10/2018”). Therefore, RPTKA application for the financial services industry could be obtained outside the OSS System (TKA Online) simultaneously under OJK’s regulation and supervision.

General Procedures of Hiring Expatriate

Sponsor company that hiring an expatriate shall submit RPTKA validation through TKA Online. However, RPTKA is not the only requirement needed to hire an expatriate pursuant to RM 10/2018, another requirement as follow: (i) Notification, (ii) Limited Stay permit Visa (“Visa Izin Tinggal Terbatas” or “VITAS”, and (iii) Limited Stay Permit (“Izin Tinggal Terbatas” or “ITAS”).

The procedure shall begin with application submission through TKA online by fill in some data, upload some documents, and pass through feasibility assessment by video call. If it has complied with the requirements, RPTKA shall be issued within 2 (two) business days.

Afterwards, the sponsor company shall apply Notification regarding the requirement of VISA and ITAS issuance. Application has conducted through TKA Online with some procedures which are: (i) fill in some data and upload some documents, (ii) Payment of Compensation Funds for Recruitment of Foreign Workers (“Dana Kompensasi Penggunaan-Tenaga Kerja Asing” or “DKP-TKA”) billing, and (iii) Issuance of Online Notification.

Regulation of the Minister of Law and Human Rights Number 16 of 2018 concerning on Procedures for The Issuance of Visa and Stay Permits for Foreign Workers (“RM 16/2018”) has stipulated the next procedures as VITAS and ITAS issuance. The VITAS and ITAS issuance shall be done in the following mechanism: (i) Immigration official receives online notification, (ii) Expatriate or sponsor company make a payment of Visa Approval Certificate, VITAS, ITAS, and Re-entry permit fees, (iii) examination and background checking by immigration official, (iv) Issuance of Visa Approval Certificate (Telex) and claiming by expatriate in Representative of the Republic of Indonesia, and (v) Expatriate obtained ITAS and entry stamp at immigration checkpoint.

Hiring Expatriate in Financial Services Industry (Banking)

In pursuant to the elucidation of article 85 RM 10/2018, specifically for Banking and Non-Banking business licensing shall be conducted outside OSS by OJK or Bank Indonesia. Certainly, RPTKA and the other expatriate permissions in Banking or Non-Banking are still conducting through TKA Online as already mentioned above concurrently under the supervision and approval by OJK.

Financial Services Authority Regulation Number 37/POJK.03/2017 of 2017 concerning The Employment of Foreign Workers and The Transfer of Knowledge Program within The Banking Sector (“POJK 37/2017”), has stipulated that approval for Board of Directors, Board of Commissioners, and Executive Officer in Banking shall be submitted prior to application for expatriate permission to institutions that responsible for the employment affairs. However, expatriate as an expert or consultant not required approval from OJK but shall report the appointment (“pengangkatan”) of the expatriate.

The procedure shall begin with: (i) submission plan for expatriate employment listed in Bank Business Plan specifically in human resources developing plan to OJK, (ii) propose an approval application according to related management bank and fit and proper test regulation, if expatriate as primary parties (iii) verification and interview if needed, (iv) approval result, and (v) report the assignment of Directors, Commissioner, Executive Officer, and expert or consultant candidate.

Hiring Expatriate in Financial Services Industry (Non-Banking)

OJK has been promulgated Financial Services Authority Regulation Number 27/POJK.03/2016 of 2016 concerning Fit and Proper Test for primary parties in Financial Services Industry (“POJK 23/2016”) and Financial Services Authority Regulation Number 34/POJK.03/2018 of 2018 concerning Anew Fit and Proper Test for primary parties in Financial Services Industry (“POJK 34/2018”). This regulation has excluded expatriate as primary parties contrarily prior to Financial Services Authority Regulation Number 4/POJK.05/2013 of 2013 concerning Fit and Proper Test for Primary Parties in Insurance Company, Pension Fund, Financing Company, and Surety Company (“POJK 4/2013”) that stipulates expatriate has included in primary parties of Non-Banking.

However, if expatriate occupies an included position in Non-Banking primary parties such as but not limited to Directors and Commissioner, they shall oblige pass through fit and proper test coincide with expatriate permission application to institutions that responsible for the employment affairs.

The procedure of fit and proper test shall begin with: (i) self-assessment conducted by Non-Banking towards primary party candidate (ii) approval application with administrative requirement to OJK, (iii) administrative assessment by OJK with specific classification, (iv) approval result, and (v) report the assignment of primary party candidate to OJK.

Author: Kristalia Andiani Puteri

Gaffar & Co., Indonesian Boutique Law Firm which specializing and focus on commercial law areas e.g. Capital Market & Financial Service.

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