“A Finance Company that will employ Foreign Workers are required to obtain approval from the Financial Services Authority.”
According to Government Relation No. 5 of 2021 regarding the Organization of Risk-Based Business Licensing (“GR No. 5/2021”), it is stated in Article 186 that in the event of employing foreign workers, Business Actors shall submit an application for the validation of foreign worker recruitment plan through electronic system organized by the ministry in charge of the manpower sector. However, there are additional requirements for Finance Company which intend to employ foreign workers. In this Article, we will convey the brief procedure in employing Foreign Worker for Finance Company.
Definition
As it states in Government Relation No. 34 of 2021 regarding the Recruitment of Foreign Workers (“GR No. 34/2021”), every Company which intend to employ Foreign Worker must obtain a work permit that approved by relevant agency. In obtaining a work permit, Foreign Worker should have Foreign Worker Recruitment Plan or Rencana Penggunaan Tenaga Kerja Asing (“RPTKA”). RPTKA is defined as a plan for the recruitment of Foreign Worker in certain positions and for a certain period.
After obtaining RPTKA, Foreign Workers should ask the agency for the Validation of RPTKA. Validation of RPTKA is define as the approval for the recruitment of Foreign Worker which is validated by the minister in charge of government affairs in the manpower sector or the appointed official.
Eligible Position for the Foreign Worker in the Finance Company
In general, positions for Foreign Worker in the Finance Sector are allowed as:
- Director;
- Commissioner;
- Experts; and/or
- Consultant.
Based on Article 24 in Regulation of the Financial Services Authority or Otoritas Jasa Keuangan (“OJK”) No. 47/POJK.05/2020 of 2020 regarding Business Licensing and Institutional Aspects of Financing Companies and Sharia Financing Companies (“OJK Regulation No. 47/2020”), Foreign Worker which are employed as experts or consultants are prohibited from handling other than functions:
- Information Technology;
- Risk Management; and
- Other functions based on the approval of the OJK.
Foreign Worker as experts or consultants are required to:
- Has expertise in accordance with the field of duty that will be his responsibility;
- The term of utilization of each foreign worker is no longer than 3 (three) years, and can be extended 1 time for a maximum of 1 (one) year;
- Occupy a position that cannot be filled by Indonesia workers; and
- Comply with the provisions of the laws and regulations on manpower, including immigration.
Foreign Workers which intend to have a work permit in a financial company can only serve in accordance to regulation from OJK and Ministry of Manpower. The ministry can reject the application for RPTKA if the Foreign Worker does not apply for a position in accordance with the regulation from the relevant agencies.
General Procedure for Hiring Foreign Workers for Finance Company
Company that will employ foreign workers as experts or consultants are required to obtain approval form the OJK. The application for approval to employ Foreign Worker shall be submitted to the OJK before the Company submits an application of permission to employ Foreign Worker to the Ministry of Manpower. Approval from OJK is used as a basis for recommendations for the use of Foreign Worker by the Financing Company to relevant agencies in the employment sector.
According to Article 22 of OJK Regulation No. 47/2020, companies that are 25% or more of whose shares are owned by the foreign citizens and/or foreign legal entities, either direct or indirect can employ foreign workers. Companies are required to include plans for the use of foreign workers other than the Board of Directors and the Board of Commissioners in the Company’s business plan. Things that should be included in the business plan consist of:
- Reasons for using the Foreign Workers and reasons for not using Indonesian Workers;
- Field of duty and the positions to be filled which included the scope of work and the required competencies;
- Plan for number of Foreign Workers needed;
- Utilization period;
- Name of the Indonesian supervisor; and
- Plan of transfer knowledge program consist of:
- Training plan for Indonesian worker; and
- Training plan by Foreign Worker
Based on Article 27 of OJK Regulation No. 47/2020, in regard to secure the approval to employ foreign workers then the Board of Directors must submit an application to the OJK by attaching documents:
- Photocopy of a valid passport;
- Curriculum Vitae of Foreign Worker employed which accompanied by photocopies of documents reflecting their field of expertise;
- Annual education and workshop plan for the duration of the foreign workers when being employed; and
- Placement plan in the organizational structure and field of duties which is the responsibility of foreign workers, along with the reasons for the utilization of foreign worker.
Further, OJK will grants approval or rejection of the application approval to employ Foreign Workers within a maximum period of 20 (twenty) business days since the application for approval being receive in a complete manner. In the event that the application is approved, OJK will issue the approval letter to employ Foreign Workers in the Company. However, if rejected then the refusal shall be made in written and accompanied by reasons of the rejection.
In conclusion, any finance Company which plan to employ Foreign Worker should obtain the recommendation from OJK which then after the approval is granted, the Company can proceed to the next step of work permit including submission of RPTKA and Validation of RPTKA.
Author: Naomi Catherine Felencia
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