Circular of the Financial Services Authority Number 12/SEOJK.05/2025 Regarding Work Competency Certification for Insurance Companies, Guarantee Institutions, Pension Funds, and Special Institutions in the Insurance, Guarantee, and Pension Fields

Circular of the Financial Services Authority Number 12/SEOJK.05/2025 Regarding Work Competency Certification for Insurance Companies, Guarantee Institutions, Pension Funds, and Special Institutions in the Insurance, Guarantee, and Pension Fields

Abstract: In order to fulfill the mandate of Article 3 paragraph (7) and Article 11 paragraph (6) of Financial Services Authority Regulation Number 34 of 2024 Regarding the Development of Human Resource Quality for Insurance Companies, Guarantee Institutions, Pension Funds, and Special Institutions in the Insurance, Guarantee, and Pension Fields (State Gazette of the Republic of Indonesia Year 2024 Number 46/OJK, Additional State Gazette of the Republic of Indonesia Number 114/OJK), which regulates implementation provisions regarding Work Competency Certification (SKK) and certifications other than SKK for the PPDP industry.

The obligation to develop human resource quality for the PPDP industry is carried out by involving PPDP industry human resources in competency development in technical, non-technical, and leadership fields through:

1. SKK in the PPDP sector;
2. certifications other than SKK in the PPDP sector; and
3. other competency enhancements.

Insurance Companies, Guarantee Institutions, Pension Funds, and Special Institutions in the PPDP Field are required to have human resources that meet competencies proven by:

1. SKK; or
2. certifications other than SKK approved by OJK, in the PPDP field.

SKK is competency enhancement through certification in accordance with SKKNI and KKNI in the PPDP field, and is organized by LSPs registered with OJK. SKK includes competency standards for fields or positions in the financial sector industry, which are job levels or parts within a financial sector industry that carry out specific activities, such as risk management, insurance, guarantee, pension, investment, and/or other relevant fields.

SKK for Actuaries of Companies in Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies can be issued by the relevant professional association in accordance with applicable legislation.

SKK is one of the requirements that must be fulfilled for the assessment of ability and propriety for Principal Parties in the PPDP industry. However, this provision does not apply to Principal Parties of social security organizing bodies.

Members of the Board of Directors, members of the Board of Commissioners, and members of the Sharia Supervisory Board are required to meet the sustainability or competency maintenance requirement at least 1 (one) time within a period of 1 (one) year, by submitting evidence of fulfillment of the relevant sustainability requirement for each Principal Party's field, including certificates issued by the organizer or evidence of papers, articles, or other published writings. Evidence of fulfillment of the sustainability requirement must be submitted in the section of the annual report as regulated in POJK regarding periodic reports or in the section of the realization report of the business plan. The purpose of fulfilling the sustainability requirement is to ensure that the competency of Principal Parties remains maintained and follows developments in the financial services industry and is relevant to each Principal Party's field.

Certifications other than SKK are competency enhancements through certifications other than SKKNI and KKNI in the PPDP field and can be organized by LSPs other than those registered with OJK, including professional associations, in accordance with applicable legislation. Certifications other than SKK include at least capital market, management, and finance.

Other competency enhancements (soft skills) are competency enhancements through means other than: SKK and certifications other than SKK.

Competency certifications organized by institutions outside the country can be recognized as equivalent, among others based on OJK's assessment, OJK's coordination with PPDP sector LSPs, OJK's coordination with industry associations, or OJK's coordination with professional associations in the PPDP field.

The legal basis for this Circular of the Financial Services Authority is: POJK No. 34 of 2024.

This Circular regulates:

1. general provisions;
2. competency development of human resources for the PPDP industry;
3. SKK for the PPDP industry;
4. certifications other than SKK for the PPDP industry;
5. other competency enhancements for insurance companies, guarantee institutions, pension funds, and special institutions in the insurance, guarantee, and pension fields;
6. recognition of competency certifications organized by institutions outside the country; and
7. closing provisions.

Note: This Circular of the Financial Services Authority takes effect on the date it is established. This Circular of the Financial Services Authority is established on June 23, 2025. At the time this Circular of the Financial Services Authority takes effect, Circular of the Financial Services Authority Number 17/SEOJK.05/2019 Regarding Expertise Certification in the Risk Management Field and Qualification Expert Certification in the Guarantee or Sharia Guarantee Field at Guarantee Institutions, is revoked and declared invalid. Provisions related to certifications applicable in the PPDP field that are not revoked in Article 26 of POJK Number 34 of 2024 are declared to remain in effect.