OJK Regulation No. 43 of 2024 on the Development of Human Resource Quality for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions

Regulation of the Financial Services Authority Number 43 of 2024 on the Development of Human Resource Quality for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions

Abstract: Human resources play a significant role in supporting business sustainability amidst competition in the financial services sector in the digital era. To ensure that human resources in the PVML (Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions) sector possess good integrity, competence, and professionalism, as well as high competitiveness, the continuous quality development of PVML human resources is required. Sustainable human resource management in the PVML sector will support the optimal contribution of the PVML sector in providing financial access to the community.

One of the efforts that PVML can undertake to support the development of human resource quality is through the provision of funds for human resource education and training to enhance human resource competence and skills, or the development of other competencies in technical, non-technical, and leadership or managerial fields.

In formulating a strategy for the continuous development of human resource quality, a system and procedures are required as guidelines for PVML. In addition, coordination from various stakeholders related to the development of PVML human resource quality is required, including the Financial Services Authority (OJK), Certification Bodies (LSP) in the PVML sector, relevant PVML associations, professional associations in the PVML sector, academics, and other competent institutions and ministries/agencies.

The legal basis for this Financial Services Authority Regulation (POJK) is: Law No. 21 of 2011 as amended by Law No. 4 of 2023; and Law No. 4 of 2023.

The Financial Services Authority Regulation on the Development of Human Resource Quality for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions regulates the scope of Human Resource Development Obligations, Human Resource Management Functions, Provision of Human Resource Development Funds, Outsourced Human Resource Development and Implementation of Human Resource Quality Development, Systems and Procedures for Planning, Monitoring, Realization, and Reporting of Human Resource Development, Competency Certification in the Field of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions, Competency Certification Obligations in the Field of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions, Professional Certification Institutions and Monitoring of Professional Certification Institutions in the Sector of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions.

PVML is required to provide funds for human resource education and training from the current year's budget to support the implementation of human resource education and training: a. PVML other than Medium-scale Microfinance Institutions and Small-scale Microfinance Institutions are required to provide funds for human resource education and training as referred to in paragraph (1) for each current year of at least 2.5% (two point five percent) of the total labor costs of the current year; b. Medium-scale Microfinance Institutions and Small-scale Microfinance Institutions are required to provide funds for human resource education and training as referred to in paragraph (1) adjusted to the financial capacity of the respective Microfinance Institution; c. PVML is required to realize the entire provision of funds for human resource education and training for each current year.

PVML is required to conduct human resource management and the continuous development of human resource quality.

PVML is required to have a director member who oversees the function of human resource management and the development of human resource quality, who must be an Indonesian citizen.

PVML is required to ensure that outsourced human resources used possess competencies appropriate to the needs of the outsourced work by PVML.

PVML is required to have a system and procedures for the continuous development of human resource quality.

The Financial Services Authority determines the fields of Competency Certification in the sector of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions. Competency Certification is conducted by LSPs registered with the Financial Services Authority.

The development of work competency standards and/or fields of work competency in the PVML sector is carried out through coordination between the Financial Services Authority, PVML sector LSPs, academics, industry associations, and/or professional associations in the PVML sector, as well as institutions competent to conduct professional certification and registered with the Financial Services Authority in accordance with statutory provisions.

Note: This Financial Services Authority Regulation takes effect on the date of promulgation. This Financial Services Authority Regulation was promulgated on December 27, 2024, and established on December 24, 2024.

Upon the effective date of this Financial Services Authority Regulation, Financial Services Authority Regulation Number 24/POJK.05/2019 concerning the Business Plan of Nonbank Financial Service Institutions and its implementing provisions remain in force insofar as they do not conflict with the provisions in this Financial Services Authority Regulation.

Upon the effective date of this Financial Services Authority Regulation, the following provisions: a. Article 19 paragraph (3) of the Financial Services Authority Regulation of the Republic of Indonesia Number 31/POJK.05/2016 concerning Pawnshop Business; b. Articles 65 to 67 of the Financial Services Authority Regulation of the Republic of Indonesia Number 35/POJK.05/2018 concerning the Conduct of Financing Company Business as amended by the Financial Services Authority Regulation of the Republic of Indonesia Number 7/POJK.05/2022 Amendment to the Financial Services Authority Regulation of the Republic of Indonesia Number 35/POJK.05/2018 concerning the Conduct of Financing Company Business; c. Articles 62 to 64 of the Financial Services Authority Regulation of the Republic of Indonesia Number 10/POJK.05/2019 concerning the Conduct of Business of Sharia Financing Companies and Sharia Business Units of Financing Companies; d. Article 21 of the Financial Services Authority Regulation of the Republic of Indonesia Number 47/POJK.05/2020 concerning Business Licensing and Institutionalization of Financing Companies and Sharia Financing Companies; and e. Article 16 of the Financial Services Authority Regulation of the Republic of Indonesia Number 10 of 2022 concerning Technology-Based Crowdfunding Services, are repealed and declared invalid.