Executive Summary
The financial services authority recently introduced a regulation that may significantly impact foreign workers in the financial sector. The key changes may affect local-to-foreign worker ratios, language requirements and reporting requirements.
The situation
Rules for foreign workers in financial sector may change, in line with a recently introduced regulation by the Financial Services Authority (OJK). The rules have not yet been implemented and an implementation date is not clear at this time.
A closer look
The new requirements include the following:
- New ratio requirement. Two Indonesian nationals may be required to act as an understudy to each foreign national. This contrasts with other industries under the authority of the Ministry of Manpower, which only have a 1:1 local-to-foreign worker ratio.
- Impact: Work permit applications may need to be accompanied by information about the understudies.
- Language requirement. Foreign nationals in the financial services sector may be required to be proficient in Bahasa Indonesia within one year of starting work.
- Impact: Work permit renewal applications may require a Bahasa Indonesia language proficiency certificate. There are no guidelines around obtaining these certificates.
- Reporting requirement. Financial institutions who employ foreign nationals may be required to report the progress of their knowledge transfer programs annually to the financial services authority.
- Regulation of work permit applications. The OJK will exclusively regulate and adjudicate work permit applications filed by financial institutions. Previously, either the OJK or the Bank of Indonesia oversaw these applications, depending on the exact institution applying for work permits.
Fragomen will continue to monitor the regulations closely and report on developments.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
Explore more at Fragomen
Podcast
El Director Miguel Jiménéz y el Senior Business Immigration Manager Rodrigo García discuten información migratoria importante para residentes de México en relación con la Visa de Residencia.
Media mentions
In an interview with Australasian Lawyer, Special Counsel Rebecca Baggiano discusses her career and pro bono work.
Awards
Fragomen is shortlisted in three categories of the 2024 Chambers USA DEI Awards.
Blog post
This blog provides an overview of the updated Quebec Immigrant Investor Program.
Media mentions
Manager Kirsty Moore shares what options employers have when sponsoring engineers under the new UK five-point plan.
Video
Paralegal Elizabeth Collier discusses the requirements for and process of applying for the UK's Global Talent Visa in the Arts and Culture category.
Fragomen news
Forbes names Partner Lisa Ryan to its inaugural list, "Top 200 Lawyers in the US."
Media mentions
Senior Manager Laxmi Limbani, Associate Naureen Malik and Apprentice Paralegal Henry Thourgood-Marshall share how the Northern UK needs to harness UK immigration to accelerate and elevate the region’s economic growth.
Media mentions
Partner Diana Quintas shared with Valor Econômico how the need for qualified labour is shaping the visa opportunities for professionals in Brazil.
Fragomen news
Fragomen announces the launch of its Center for Strategy and Applied Insights and welcomes Senior Policy Advisor Amy Nice.
Media mentions
Manager Harry Goldstraw shares what UK employers need to consider when sending employees on short-term contracts to the European Union.
Blog post
This blog highlights the growing momentum of the UK's semiconductor sector, emphasising its strategic importance for the nation's science and technology ambitions, while also addressing upcoming challenges in talent acquisition due to proposed changes in immigration policies.
Podcast
El Director Miguel Jiménéz y el Senior Business Immigration Manager Rodrigo García discuten información migratoria importante para residentes de México en relación con la Visa de Residencia.
Media mentions
In an interview with Australasian Lawyer, Special Counsel Rebecca Baggiano discusses her career and pro bono work.
Awards
Fragomen is shortlisted in three categories of the 2024 Chambers USA DEI Awards.
Blog post
This blog provides an overview of the updated Quebec Immigrant Investor Program.
Media mentions
Manager Kirsty Moore shares what options employers have when sponsoring engineers under the new UK five-point plan.
Video
Paralegal Elizabeth Collier discusses the requirements for and process of applying for the UK's Global Talent Visa in the Arts and Culture category.
Fragomen news
Forbes names Partner Lisa Ryan to its inaugural list, "Top 200 Lawyers in the US."
Media mentions
Senior Manager Laxmi Limbani, Associate Naureen Malik and Apprentice Paralegal Henry Thourgood-Marshall share how the Northern UK needs to harness UK immigration to accelerate and elevate the region’s economic growth.
Media mentions
Partner Diana Quintas shared with Valor Econômico how the need for qualified labour is shaping the visa opportunities for professionals in Brazil.
Fragomen news
Fragomen announces the launch of its Center for Strategy and Applied Insights and welcomes Senior Policy Advisor Amy Nice.
Media mentions
Manager Harry Goldstraw shares what UK employers need to consider when sending employees on short-term contracts to the European Union.
Blog post
This blog highlights the growing momentum of the UK's semiconductor sector, emphasising its strategic importance for the nation's science and technology ambitions, while also addressing upcoming challenges in talent acquisition due to proposed changes in immigration policies.