Financial Services Authority Regulation Number 24 of 2022 Concerning the Development of Human Resource Quality for Commercial Banks

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 24 OF 2022
CONCERNING
THE DEVELOPMENT OF HUMAN RESOURCE QUALITY FOR COMMERCIAL BANKS BY THE GRACE OF THE ALMIGHTY GOD THE COMMISSIONERS' COUNCIL OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that the function, duties, and authority for regulation and supervision of financial services activities in the banking sector have shifted from Bank Indonesia to the Financial Services Authority; b. that to support the banking industry with good resilience, high competitiveness, and optimal contribution to the economy, as well as the ability to anticipate trends in business development and information technology innovation in the digital era, human resources that are integrated, competent, professional, and highly competitive are required, making the development of human resource quality a priority;
c. that to encourage banks to carry out various quality developments for their human resources, existing regulations regarding bank human resources are no longer in line with developments, so it is necessary to update the provisions;
d. that based on the considerations referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation concerning the Development of Human Resource Quality for Commercial Banks;

Recalling:

1. Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1992 Number 31, Supplement to the State Gazette of the Republic of Indonesia Number 3472) as amended by Law Number 10 of 1998 concerning Amendments to Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1998 Number 182, Supplement to the State Gazette of the Republic of Indonesia Number 3790);
2. Law Number 21 of 2008 concerning Sharia Banking (State Gazette of the Republic of Indonesia Year 2008 Number 94, Supplement to the State Gazette of the Republic of Indonesia Number 4867);
3. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);

DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE DEVELOPMENT OF HUMAN RESOURCE QUALITY FOR COMMERCIAL BANKS.

CHAPTER I
GENERAL PROVISIONS

Article 1
In this Financial Services Authority Regulation, the following terms are defined:

1. Commercial Bank, hereinafter referred to as Bank, is a bank that conducts business activities conventionally or based on Sharia principles, which in its activities provides services in payment transactions, including branch offices of banks located abroad and Sharia business units.
2. Human Resources, hereinafter abbreviated as HR, are members of the Board of Directors, members of the Board of Commissioners, permanent employees, non-permanent employees, and/or members of the Sharia Supervisory Board, within the Bank.
3. Work Competency Certification is the process of issuing work competency certificates conducted systematically and objectively through competency tests according to the Indonesian National Work Competency Standards.
4. Professional Certification Agency, hereinafter abbreviated as LSP, is an agency that conducts professional certification activities that have met the requirements and have obtained a license from the National Professional Certification Agency.

Article 2
(1) Banks are required to manage HR and develop the quality of their HR continuously.
(2) HR management as referred to in paragraph (1) is carried out in accordance with the employee cycle within the Bank.
(3) HR quality development as referred to in paragraph (1) is carried out:
a. through increasing the work competency of HR; and b. by prioritizing and equalizing the work competency of HR, which is adjusted to the vision, mission, and business strategy of the Bank.

Article 3
(1) Banks must have a director who oversees the HR function.
(2) The director overseeing the HR function as referred to in paragraph (1) may concurrently serve as a director of other functions within the Bank, adjusted to the scale and complexity of the Bank. (3) The HR function is implemented by an HR operational unit.

Article 4
(1) Banks are required to provide funds for HR quality development for each fiscal year.
(2) Funds for HR quality development as referred to in paragraph (1) are used to support the improvement of HR work competency.
(3) The amount or nominal provision of funds for HR quality development as referred to in paragraph (1) must be provided by the Bank for each fiscal year of at least 3.5% (three point five percent) of the total realization of gross salary expenses of the previous year. (4) Banks are required to realize the provision of funds for HR quality development for each fiscal year of at least 3.5% (three point five percent) of the total realization of gross salary expenses of the previous year.

Article 5
(1) Banks may carry out quality development for outsourced human resources used, adjusted to the Bank's needs.
(2) Banks are required to ensure that outsourced human resources used have competencies appropriate to the needs of the outsourced work by the Bank.
(3) For Banks that carry out quality development for outsourced human resources as referred to in paragraph (1), the funds expended for the quality development of outsourced human resources are included in the funds for HR quality development as referred to in Article 4.

Article 6
The obligation to develop HR quality as referred to in Article 2 paragraph (1) is carried out by the Bank by involving HR in competency development in technical fields, non-technical fields, and leadership fields through:
a. Work Competency Certification in the banking sector; b. competency certification other than Work Competency Certification in the banking sector; and
c. other competency improvements.

Article 7
(1) Banks are required to identify and establish critical functions and critical positions within the Bank.
(2) Directors, executive officials, and non-executive officials holding critical positions within the Bank as referred to in paragraph (1) must possess the competencies required for the respective positions. (3) The Financial Services Authority has the authority to evaluate the fulfillment of competencies required for critical positions and to establish actions in the event that the Bank and/or HR in critical positions as referred to in paragraph (2) do not meet the provisions.

Article 8
(1) HR quality development can be carried out by:
a. being implemented by the Bank; b. being implemented by the Bank in cooperation with other parties; and/or
c. involving HR in competency improvement programs organized by other parties.
(2) HR quality development as referred to in paragraph (1) is carried out online and/or offline.

Article 9
(1) Banks formulate HR quality development plans within the bank's business plan.
(2) The HR quality development plan as referred to in paragraph (1) includes:
a. program or activity plans for HR quality development in competency development in the fields of:

1. technical;
2. non-technical; and
3. leadership;
   b. projections or plans for the number of HR involved and their ratio to the total number of HR; and
   c. projections of the ratio of funds for HR quality development to the realization of gross salary expenses of the previous year.
   (3) Banks submit the realization of the HR quality development plan as referred to in paragraph (2) in the business plan realization report.
   (4) The realization report as referred to in paragraph (3) includes:
   a. realization of programs or activities for HR quality development; b. the number of HR involved and their ratio to the total number of HR; and
   c. the ratio of funds for HR quality development to the realization of gross salary expenses of the previous year.
   (5) Banks are required to administer the realization of HR quality development programs.
   (6) The formulation of:
   a. HR quality development plans as referred to in paragraph (2); and b. realization reports as referred to in paragraph (4), follows the format in the appendix which is an integral part of this Financial Services Authority Regulation.

Article 10
(1) Banks that violate the provisions as referred to in Article 2 paragraph (1), Article 4 paragraph (1), paragraph (3), paragraph (4), Article 5 paragraph (2), Article 7 paragraph (1), and/or Article 9 paragraph (5) are subject to administrative sanctions in the form of written reprimands. (2) In the event that a Bank has been subject to administrative sanctions as referred to in paragraph (1), and has not fulfilled the provisions as referred to in Article 2 paragraph (1), Article 4 paragraph (1), paragraph (3), paragraph (4), Article 5 paragraph (2), Article 7 paragraph (1), and/or Article 9 paragraph (5), the Bank is subject to administrative sanctions in the form of:
a. prohibition to conduct new business activities; b. suspension of certain business activities; and/or
c. downgrade of the Bank's health level.

CHAPTER II
WORK COMPETENCY CERTIFICATION

Article 11
(1) The Financial Services Authority establishes the fields of Work Competency Certification in the banking sector as referred to in Article 6 letter a.
(2) The fields of Work Competency Certification in the banking sector as referred to in paragraph (1) include Work Competency Certification in the field of risk management and/or other fields. (3) Work Competency Certification in the fields established by the Financial Services Authority as referred to in paragraph (1) is organized by banking sector LSPs registered with the Financial Services Authority. (4) Further provisions regarding the fields of Work Competency Certification in the banking sector as referred to in paragraph (2) shall at least regulate:
a. HR criteria to possess competency certificates; b. certification tiering;
c. certification maintenance programs; and
d. the validity period of competency certificates, which are established by the Financial Services Authority.
(5) Banks are required to implement Work Competency Certification in the banking sector established by the Financial Services Authority as referred to in paragraph (4).
(6) In addition to the fields of Work Competency Certification in the banking sector as referred to in paragraph (1), Banks carry out HR quality development through other competency certification fields. (7) Banks that violate the provisions as referred to in paragraph (5) are subject to administrative sanctions in the form of written reprimands. (8) In the event that a Bank has been subject to administrative sanctions as referred to in paragraph (7), and has not fulfilled the provisions as referred to in paragraph (5), the Bank is subject to administrative sanctions in the form of:
a. prohibition to conduct new business activities; b. suspension of certain business activities; and/or
c. downgrade of the Bank's health level.

Article 12
The Financial Services Authority may establish certain policies regarding the fulfillment of obligations for Work Competency Certification in the banking sector.

CHAPTER III
BANKING SECTOR LSP

Article 13
Banking sector LSPs establish requirements to become providers of competency maintenance and/or criteria for each form of activity recognized as competency maintenance.

Article 14
(1) Banking sector LSPs organizing Work Competency Certification in the banking sector are required to maintain the quality of Work Competency Certification tests in the banking sector.
(2) To maintain the quality of Work Competency Certification tests in the banking sector as referred to in paragraph (1), banking sector LSPs conduct at least:
a. periodic reviews of competency test methods, test materials, and assigned assessors; and b. updates of competency test materials in accordance with the latest developments in the fields of Work Competency Certification in the banking sector, aligned with the needs and future development of banking. (3) The Financial Services Authority has the authority to monitor and evaluate banking sector LSPs in the implementation of:
a. Work Competency Certification tests in the banking sector; and b. activities as referred to in paragraph (2) letters a and b, in maintaining the quality of certification tests.
(4) In carrying out monitoring and evaluation as referred to in paragraph (3), the Financial Services Authority may coordinate with competent agencies.
(5) Banking sector LSPs that violate the provisions as referred to in paragraph (1) are subject to administrative sanctions in the form of written reprimands.
(6) In the event that a banking sector LSP has been subject to administrative sanctions as referred to in paragraph (5), and has not fulfilled the provisions as referred to in paragraph (1), the banking sector LSP is subject to administrative sanctions in the form of revocation of registration status by the Financial Services Authority.

Article 15
Banking sector LSPs may establish professional titles for parties who have obtained work competency certificates in the banking sector.

CHAPTER IV
MONITORING

Article 16
Banks are required to have internal systems and/or procedures to monitor the realization of HR quality development continuously.

Article 17
Banks are required to:
a. conduct monitoring to ensure that HR:

1. possesses certificates in the fields of Work Competency Certification in the banking sector; and
2. participates in competency maintenance programs periodically in accordance with the fields of Work Competency Certification in the banking sector,
   which are established by the Financial Services Authority. b. conduct monitoring of HR participating in HR quality development programs through:
3. Work Competency Certification in the banking sector;
4. competency certification other than Work Competency Certification in the banking sector; and
5. other competency improvements.

Article 18
(1) Banks that violate the provisions as referred to in Article 16 and/or Article 17 are subject to administrative sanctions in the form of written reprimands.
(2) In the event that a Bank has been subject to administrative sanctions as referred to in paragraph (1), and has not fulfilled the provisions as referred to in Article 16 and/or Article 17, the Bank is subject to administrative sanctions in the form of:
a. prohibition to conduct new business activities; b. suspension of certain business activities; and/or
c. downgrade of the Bank's health level.

CHAPTER V
OTHER PROVISIONS

Article 19
The development of work competency standards and/or fields of work competency in the banking sector is carried out through coordination between the Financial Services Authority, banking sector LSPs, academics, industry associations and/or professional associations in the banking sector, and competent agencies.

Article 20
(1) Competency certificates issued by other agencies abroad can be recognized as equivalent to competency certificates issued by banking sector LSPs, for the same competency fields.
(2) Certificates that can be recognized as equivalent to certificates issued by banking sector LSPs as referred to in paragraph (1) must have a mutual recognition process:
a. competency certificates are recognized by the authorities of the respective countries; and/or b. competency certificates are issued by reputable international certification agencies.
(3) The equivalence of competency certificates issued by other agencies abroad as referred to in paragraph (2) is carried out by banking sector LSPs and through coordination and/or approval by competent agencies in the equivalence of competency certificates.

Article 21
(1) Banks may participate in developing the quality of national human resources.
(2) In the event that Banks provide funds for participation in the development of national human resource quality as referred to in paragraph (1), such funds are not included as funds for HR quality development as referred to in Article 4. (3) The development of national human resource quality as referred to in paragraph (1) remains guided by policies regarding employees and prudential principles.

CHAPTER VI
TRANSITIONAL PROVISIONS

Article 22
Banks that do not yet have internal systems and/or procedures as referred to in Article 16 at the time this Financial Services Authority Regulation comes into force are given a period of at most 6 (six) months from the date this Financial Services Authority Regulation comes into force to fulfill the obligations as referred to in Article 16.

CHAPTER VII
CLOSING PROVISIONS

Article 23
At the time this Financial Services Authority Regulation comes into force:

1. Financial Services Authority Regulation Number 5/POJK.03/2016 concerning Bank Business Plans (State Gazette of the Republic of Indonesia Year 2016 Number 17, Supplement to the State Gazette of the Republic of Indonesia Number 5841) and its implementing regulations;
2. Financial Services Authority Regulation Number 9/POJK.03/2016 concerning Prudential Principles for Commercial Banks that Outsource Part of Their Work Execution to Other Parties (State Gazette of the Republic of Indonesia Year 2016 Number 21, Supplement to the State Gazette of the Republic of Indonesia Number 5845); and
3. Financial Services Authority Regulation Number 11/POJK.03/2020 concerning National Economic Stimulus as Countercyclical Policy for the Impact of the 2019 Coronavirus Disease Spread (State Gazette of the Republic of Indonesia Year 2020 Number 76, Supplement to the State Gazette of the Republic of Indonesia Number 6480) as last amended by Financial Services Authority Regulation Number 17/POJK.03/2021 concerning the Second Amendment to Financial Services Authority Regulation Number 11/POJK.03/2020 concerning National Economic Stimulus as Countercyclical Policy for the Impact of the 2019 Coronavirus Disease Spread (State Gazette of the Republic of Indonesia Year 2021 Number 213, Supplement to the State Gazette of the Republic of Indonesia Number 6722),
   are declared to remain in force as long as they do not conflict with the provisions in this Financial Services Authority Regulation.

Article 24
Regarding the implementation of Work Competency Certification in the field of banking risk management implemented at the time this Financial Services Authority Regulation comes into force until the Work Competency Certification scheme in the field of banking risk management based on the latest Indonesian National Qualification Framework for banking risk management has been validated and/or verified by competent agencies, implementation continues in accordance with the provisions of existing laws and regulations prior to the coming into force of this Financial Services Authority Regulation.

Article 25
At the time this Financial Services Authority Regulation comes into force:

1. Bank Indonesia Regulation Number 11/19/PBI/2009 concerning Risk Management Certification for Management and Officials of Commercial Banks (State Gazette of the Republic of Indonesia Year 2009 Number 80, Supplement to the State Gazette of the Republic of Indonesia Number 5011) as amended by Bank Indonesia Regulation Number 12/7/PBI/2010 concerning Amendments to Bank Indonesia Regulation Number 11/19/PBI/2009 concerning Risk Management Certification for Management and Officials of Commercial Banks (State Gazette of the Republic of Indonesia Year 2010 Number 63, Supplement to the State Gazette of the Republic of Indonesia Number 5129); and
2. Board of Directors Decision Number 31/310/KEP/DIR of 1999 concerning the Provision of Funds for the Development of Human Resources for Commercial Banks,
   are revoked and declared invalid.

Article 26
This Financial Services Authority Regulation comes into force on the date of enactment.

This copy is consistent with the original
Director of Legal Department 1
Legal Department signed
Mufli Asmawidjaja

To ensure that everyone knows it, ordering the enactment of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on 25 November 2022
CHAIRMAN OF THE COMMISSIONERS' COUNCIL
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR

Enacted in Jakarta on 5 December 2022
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2022 NUMBER 28/OJK

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 24 OF 2022
CONCERNING
THE DEVELOPMENT OF HUMAN RESOURCE QUALITY FOR COMMERCIAL BANKS

I. GENERAL
As an intermediary institution, Banks play a role in contributing to the economy through support for national economic stability and growth. To maintain their existence as such intermediary institutions, Banks must be able to anticipate trends in business development and information technology innovation in the digital era, which drive the banking sector. To support the role of Banks, HR is the most important asset among the various resources owned by Banks, occupying a strategic position, and playing a significant role among other resources, especially since Banks are institutions that rely on public trust in offering their services. It must be recognized that HR is the forefront of Banks to win competition in the competitive banking and financial services industry; therefore, good and continuous HR management is very important, as banking is a business that requires integrity, talent, special competencies, and reliable HR support to face such high competition alongside increasingly diverse banking products and services and the development of information technology in the financial services sector. To ensure that the HR owned by Banks has quality that is integrated, competent, professional, and competitive, Banks must make the development of HR quality a priority carried out continuously. To support the continuous development of HR quality, Banks need to make the improvement of HR work competency one of the efforts through the provision of funds intended for HR quality development, which will be realized, among others, through competency development programs in technical fields, non-technical fields, and leadership fields (leadership or managerial competency). Therefore, close coordination is required from various parties, including the Financial Services Authority, banking sector LSPs, academics, industry associations and/or professional associations in the banking sector, competent agencies, and other related parties, to support the improvement of HR work competency in various competency fields in the banking sector, so that Banks can

compete with full competitiveness while still considering prudential aspects.
To support the strengthening of regulations related to HR, updates to regulations regarding the development of the quality of human resources of general banks are required.

II. ARTICLE BY ARTICLE
Article 1
It is clear enough.

Article 2
Paragraph (1)
What is meant by "continuously" is the management of HR and the development of HR quality that is carried out continuously in a systematic, planned, and objective manner to anticipate the development of the banking sector and the financial services sector in the future.

Paragraph (2)
The personnel cycle in a Bank, also known as the employee life cycle, covers various stages that HR goes through, including strategy and planning, fulfillment or recruitment, orientation and adaptation (onboarding), culture, training and development, performance management and rewards, career development/talent management/succession, termination, and pension programs (offboarding).

Paragraph (3)
The development of HR quality, which is adjusted to the Bank's vision, mission, and business strategy, is for:
a. supporting the achievement of the Bank's business goals; b. anticipating trends in business development and information technology innovation, including supporting the acceleration of digital transformation in banking in the future, among others through the development of digital leadership, digital talent, cybersecurity talent, and climate-related financial risk talent, so that it is in line with the development of risks related to digitalization and climate change; and
c. facing competition among HR and human resources in other businesses.

Article 3
It is clear enough.

Article 4
Paragraph (1)
Funds for the development of HR quality include all funds provided by the Bank that are recorded in the Bank's profit and loss position, related to certification programs, training, formal education, mentoring, and/or secondment, including among others travel costs, meals, application maintenance, handbooks, modules, license/software subscription, e-library/journal subscription, and room renovation costs, to support HR quality development activities.

Excluded from the scope of funds for the development of HR quality are capital expenditures incurred by the Bank related to educational facilities that will be recorded as the Bank's fixed assets. What is meant by "fiscal year" is the year starting from January to December.

Paragraph (2)
It is clear enough.

Paragraph (3)
What is meant by "gross salary expense" or known as the term gross salary is the expense recorded in the Bank's profit and loss position consisting of director salaries, salaries and wages other than directors, and commissioners' or supervisory board honorariums. Funds for the development of HR quality in each fiscal year are recorded by the Bank as education and training funds in accordance with Financial Services Authority Regulations regarding bank business plans.

Paragraph (4)
It is clear enough.

Article 5
Paragraph (1)
What is meant by "outsourced human resources" is human resources or labor from outsourcing service provider companies that work at the Bank through a work contracting agreement and/or through a labor supply service agreement.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Article 6
What is meant by "technical field competence" is knowledge, skills, and attitudes/behaviors that can be observed, measured, and developed, which are related to the technical field in performing functions, jobs, or positions at the Bank. What is meant by "non-technical field competence" is knowledge, skills, and attitudes/behaviors that can be observed, measured, and developed, which are related to interactions both intrapersonally and interpersonally in performing functions, jobs, or positions at the Bank. What is meant by "leadership field competence" or known as the term leadership or managerial competence is knowledge, skills, and attitudes/behaviors that can be observed, measured, and developed to lead and/or manage the Bank and/or Bank organizational units.

Letter a
Competency Certifications in the banking sector include among others in the fields of risk management, compliance, general banking, wealth management, strategic planning, information technology, treasury, audit, corporate finance, payment systems and rupiah money management, Sharia supervisors, consumer protection, and capital market aspects.

Letter b
Competency certifications other than Competency Certifications in the banking sector are international and domestic certification programs needed in the banking sector, among others in the fields of risk management, financial planning, investment, corporate finance, wealth management, strategic planning, information technology, cybersecurity, data analysis, treasury, audit, and forensic audit.

Letter c
Other competency enhancements are the development of HR quality through the enhancement of HR competencies other than competency certifications, among others through continuous formal education programs, leadership education, communication, and other interpersonal skills, mentoring, secondment, and other programs that support the Bank's business, services, and operations.

Article 7
Paragraph (1)
Critical functions are core functions at the Bank related to business activities, services, and operations, which play a main role in supporting the achievement of goals in accordance with the Bank's vision, mission, and business strategy. HR occupying critical functions include:
a. requiring special, specific, and/or unique expertise or competence, in accordance with the Bank's core business as the Bank's goals and strategy; b. requiring high performance;
c. providing high learning opportunities; and
d. in accordance with the Bank's needs and priorities in driving the achievement of the Bank's goals and strategy.
Critical positions are positions at the Bank that perform critical functions.

Paragraph (2)
Competencies required are among others proven by the ownership of Competency Certifications in the banking sector and/or competency certifications other than Competency Certifications in the banking sector, which support the implementation of critical functions.

Paragraph (3)
Actions established by the Financial Services Authority include among others setting the time limit for the fulfillment of competency certifications by HR in critical positions or instructing the Bank to replace HR in critical positions.

Article 8
Paragraph (1)
Letter a
What is meant by "carried out by the Bank" is the implementation of HR quality development using the Bank's own resources.

Letter b
What is meant by "carried out by the Bank in cooperation with third parties" is the implementation

HR quality development is carried out by the Bank with parties outside the Bank, among others the Bank with non-bank financial service institutions within the scope of banking synergy, with other banks, and/or with other institutions. Banking synergy is banking synergy in accordance with Financial Services Authority Regulations regarding general banks and Financial Services Authority Regulations regarding Sharia general banks. Other institutions are other institutions both domestic or foreign (authorities, campuses, consultants, companies, etc.).

Letter c
It is clear enough.

Paragraph (2)
It is clear enough.

Article 9
Paragraph (1)
The HR quality development plan is part of the HR development plan in accordance with Financial Services Authority Regulations regarding bank business plans.

Paragraph (2)
The HR quality development plan can be in the form of upskilling and reskilling programs or activities, considering among others the results of the evaluation of the implementation of HR quality development in the previous period, the results of competency gap analysis, and other analyses required in accordance with the Bank's needs.

Number 1
The development of competencies in the technical field is carried out through Competency Certifications in the banking sector, competency certifications other than Competency Certifications in the banking sector, and other competency enhancements.

Number 2
It is clear enough.

Number 3
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Paragraph (3)
The realization report of the HR quality development plan is part of the HR development plan realization in accordance with Financial Services Authority Regulations regarding bank business plans.

Paragraph (4)
It is clear enough.

Paragraph (5)
The administration of the realization of HR quality development programs is carried out among others for:
a. proof and/or documents of the implementation of Competency Certifications in the banking sector, implementation of competency certifications other than Competency Certifications in the banking sector, and implementation of other competency enhancements; b. the number of HR participating and/or HR attendance lists; and
c. proof of payment if there are costs in the implementation of HR quality development programs.

Paragraph (6)
It is clear enough.

Article 10
It is clear enough.

Article 11
Paragraph (1)
It is clear enough.

Paragraph (2)
Competency Certifications in other fields include among others compliance, general banking, wealth management, strategic planning, information technology, treasury, payment systems and rupiah money management, Sharia supervisors, consumer protection, and capital market aspects.

Paragraph (3)
Competency Certifications in fields established by the Financial Services Authority are carried out in accordance with the competency units referring to the Indonesian National Work Competency Standards and qualification levels referring to the Indonesian National Qualification Framework, which apply to the banking sector.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
Other competency certification fields are competency certifications other than Competency Certifications in the banking sector in the form of international and domestic certifications that support the Bank's business, services, and operations, and support the development of HR quality.

Paragraph (7)
It is clear enough.

Paragraph (8)
It is clear enough.

Article 12
Specific policies include among others:
a. policies towards parties who, based on the Financial Services Authority's consideration, have the ability or work competence in the banking sector by considering profiles, characteristics, and specialization of competencies; and b. policies related to the mechanism for fulfilling the obligation of Competency Certifications in the banking sector.

Article 13
The establishment of requirements to become a competency maintenance organizer and/or criteria for each form of activity recognized as competency maintenance is implemented to support the renewal of work competency certificates in continuous competency maintenance. Requirements for competency maintenance organizers and/or criteria for each form of activity recognized as competency maintenance are guidelines for competency maintenance organizers to carry out activities that can be recognized as competency maintenance by the LSP. Forms of activity that can be recognized by the LSP as competency maintenance include among others in-house training, seminars, socialization of regulations from competent authorities, workshops, symposiums, e-learning, and/or work portfolios, in accordance with the relevant competency certification field.

Article 14
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
What is meant by "competent authority" currently is the National Professional Certification Agency (Badan Nasional Sertifikasi Profesi).

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Article 15
It is clear enough.

Article 16
Monitoring of the realization of HR quality development is carried out among others for:
a. the realization of HR quality development programs; b. the equitable distribution of HR quality development programs across the Bank; and
c. competency gap analysis,
so that the Bank can determine necessary actions so that the implementation of HR quality development can run according to plan, overcome existing competency gaps, and be in line with the Bank's vision, mission, and business strategy. The form or method of the internal system and/or procedures is based on the Bank's internal policies.

Article 17
It is clear enough.

Article 18
It is clear enough.

Article 19
The development of work competency standards in the banking sector is in accordance with the Indonesian National Work Competency Standards and the Indonesian National Qualification Framework applicable to the banking sector.

Article 20
Paragraph (1)
It is clear enough.

Paragraph (2)
The mutual recognition process is known as the term mutual recognition arrangement.

Paragraph (3)
It is clear enough.

Article 21
Paragraph (1)
The development of national human resource quality is among others through internship programs provided by the Banks to support national education and/or the national working world.
The development of national human resource quality is adjusted to the Bank's plans and policies.

Paragraph (2)
It is clear enough.

Paragraph (3)
The employee recognition policy is known as the term know your employee.
The employee recognition policy and prudential principles are implemented among others in accordance with:
a. Financial Services Authority Regulations regarding the application of anti-fraud strategies for general banks; and b. Financial Services Authority Regulations regarding the application of anti-money laundering and counter-terrorism financing programs in the financial services sector.

Article 22
It is clear enough.

Article 23
It is clear enough.

Article 24
What is meant by "implementation of Competency Certifications in the field of banking risk management" is among others related to competency units and certification levels or qualification levels in the field of risk management. What is meant by "current Indonesian National Qualification Framework for banking risk management" is the Indonesian National Qualification Framework for banking risk management that is in effect at the time this Financial Services Authority Regulation takes effect. What is meant by "competent authority" currently is the National Professional Certification Agency (Badan Nasional Sertifikasi Profesi).

Article 25
It is clear enough.

Article 26
It is clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 20/OJK

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 24 OF 2022
REGARDING
THE DEVELOPMENT OF QUALITY OF HUMAN RESOURCES OF GENERAL BANKS

I. Format of HR Quality Development Plan (Bank Business Plan)

Position	HR Quality Development Plan
Technical Field	Non-Technical Field	Leadership Field
Competency Certification in the banking sector (SKKNI)	Competency Certification other than Competency Certification in the banking sector (Certification other than SKKNI)	Other Competency Enhancement	Competency Certification in the banking sector (SKKNI)	Competency Certification other than Competency Certification in the banking sector (Certification other than SKKNI)	Other Competency Enhancement	Competency Certification in the banking sector (SKKNI)	Competency Certification other than Competency Certification in the banking sector (Certification other than SKKNI)	Other Competency Enhancement	Competency Certification in the banking sector (SKKNI)	Competency Certification other than Competency Certification in the banking sector (Certification other than SKKNI)	Other Competency Enhancement
Projected Number of HR	Projected Amount of Funds (Rp. Million)	Projected Number of HR	Projected Amount of Funds (Rp. Million)	Projected Number of HR	Projected Amount of Funds (Rp. Million)	Projected Number of HR	Projected Amount of Funds (Rp. Million)	Projected Number of HR	Projected Amount of Funds (Rp. Million)	Projected Number of HR	Projected Amount of Funds (Rp. Million)
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)
Board of Directors …	…	…	…	…	…	…	…	…	…	…
Board of Commissioners …	…	…	…	…	…	…	…	…	…	…
Executive Officials …	…	…	…	…	…	…	…	…	…	…
Positions other than Board of Directors, Board of Commissioners, Executive Officials (12)	…	…	…	…	…	…	…	…	…	…
Total (13)	…	…	…	…	…	…	…	…	…	…
Ratio (%) (14)	…	…	…	…	…	…	…	…	…	…
1. Number/Projected HR Previous Year …	(15)
2. Number/Projected Gross Salary Expense Previous Year …	(Rp. Million)	(16)
3. Total Projected Funds for HR Quality Development …	(Rp. Million)	(17)
4. Projected Ratio of Funds for HR Quality Development against Gross Salary Expense …	(%)	(18)

Notes:
Example: Bank Business Plan (RBB) year 2023-2025, where according to regulations submitted no later than the end of November 2022. Then the filling of the Plan for HR Quality Development for the year 2023 is as follows:
(1) Is a list of HR planned to participate in HR Quality Development in 2023.
(2) Filled with projected number of HR for each position, who will participate in HR Quality Development in the Technical Field in the form of Competency Certification in the banking sector as referred to in Article 6 letter a (i.e. in accordance with the Indonesian National Work Competency Standards (SKKNI)). (3) Filled with projected amount of funds for each position, in HR Quality Development in the Technical Field in the form of Competency Certification in the banking sector (SKKNI). (4) Filled with projected number of HR for each position, who will participate in HR Quality Development in the Technical Field in the form of competency certification other than Competency Certification in the banking sector as referred to in Article 6 letter b (certification other than SKKNI). (5) Filled with projected amount of funds for each position, in HR Quality Development in the Technical Field in the form of competency certification other than Competency Certification in the banking sector (certification other than SKKNI). (6) Filled with projected number of HR for each position, who will participate in HR Quality Development in the Technical Field in the form of other competency enhancements as referred to in Article 6 letter c. (7) Filled with projected amount of funds for each position, in HR Quality Development in the Technical Field in the form of other competency enhancements. (8) Filled with projected number of HR for each position, who will participate in HR Quality Development in the Non-Technical Field. (9) Filled with projected amount of funds for each position, in HR Quality Development in the Non-Technical Field. (10) Filled with projected number of HR for each position, who will participate in HR Quality Development in the Leadership Field. (11) Filled with projected amount of funds for each position, in HR Quality Development in the Leadership Field. (12) Can include outsourced human resources. (13) Filled with Total Projected Number of HR and Projected Amount of Funds in each column (column (2) to column (11)). (14) For filling in columns (2), (4), (6), (8), (10), filled with the sum of each column divided by the number in row (15). For filling in columns (3), (5), (7), (9), (11), filled with the sum of each column divided by the number in row (16). (15) Filled with Number/Projected HR Previous Year (December 2022 position). (16) Filled with Number/Projected Gross Salary Expense Previous Year (December 2022 position). (17) Filled with the sum of Projected Amount of Funds in columns (3), (5), (7), (9), and (11) in row (13). (18) Filled with the result of row (17) divided by row (16).

II. Format of HR Quality Development Plan Realization (Bank Business Plan Realization)

Position	HR Quality Development Realization
Technical Field	Non-Technical Field	Leadership Field
Competency Certification in the banking sector (SKKNI)	Competency Certification other than Competency Certification in the banking sector (Certification other than SKKNI)	Other Competency Enhancement	Competency Certification in the banking sector (SKKNI)	Competency Certification other than Competency Certification in the banking sector (Certification other than SKKNI)	Other Competency Enhancement	Competency Certification in the banking sector (SKKNI)	Competency Certification other than Competency Certification in the banking sector (Certification other than SKKNI)	Other Competency Enhancement	Competency Certification in the banking sector (SKKNI)	Competency Certification other than Competency Certification in the banking sector (Certification other than SKKNI)	Other Competency Enhancement
Realized Number of HR	Realized Amount of Funds (Rp. Million)	Realized Number of HR	Realized Amount of Funds (Rp. Million)	Realized Number of HR	Realized Amount of Funds (Rp. Million)	Realized Number of HR	Realized Amount of Funds (Rp. Million)	Realized Number of HR	Realized Amount of Funds (Rp. Million)	Realized Number of HR	Realized Amount of Funds (Rp. Million)
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)
Board of Directors …	…	…	…	…	…	…	…	…	…	…
Board of Commissioners …	…	…	…	…	…	…	…	…	…	…
Executive Officials …	…	…	…	…	…	…	…	…	…	…
Positions other than Board of Directors, Board of Commissioners, Executive Officials (12)	…	…	…	…	…	…	…	…	…	…
Total (13)	…	…	…	…	…	…	…	…	…	…
Ratio (%) (14)	…	…	…	…	…	…	…	…	…	…
1. Number of HR …	(15)
2. Number/Projected Gross Salary Expense Previous Year …	(Rp. Million)	(16)
3. Realized Amount of Funds for HR Quality Development …	(Rp. Million)	(17)
4. Realized Ratio of Funds for HR Quality Development against Gross Salary Expense …	(%)	(18)

Notes:
Example: RBB Realization year 2023-2025 (Q1-2023 realization), then the filling for Q1-2023 RBB Realization for HR Quality Development is as follows:
(1) Is a list of HR who have participated in HR Quality Development up to Q1-2023.
(2) Filled with realized number of HR for each position, who up to Q1-2023 have participated in HR Quality Development in the Technical Field in the form of Competency Certification in the banking sector as referred to in Article 6 letter a (i.e. in accordance with the Indonesian National Work Competency Standards (SKKNI)). (3) Filled with realized amount of funds for each position, who up to Q1-2023 have participated in HR Quality Development in the Technical Field in the form of Competency Certification in the banking sector (SKKNI). (4) Filled with realized number of HR for each position, who up to Q1-2023 have participated in HR Quality Development in the Technical Field in the form of competency certification other than Competency Certification in the banking sector as referred to in Article 6 letter b (certification other than SKKNI). (5) Filled with realized amount of funds for each position, who up to Q1-2023 have participated in HR Quality Development in the Technical Field in the form of competency certification other than Competency Certification in the banking sector (certification other than SKKNI). (6) Filled with realized number of HR for each position, who up to Q1-2023 have participated in HR Quality Development in the Technical Field in the form of other competency enhancements as referred to in Article 6 letter c. (7) Filled with realized amount of funds for each position, who up to Q1-2023 have participated in HR Quality Development in the Technical Field in the form of other competency enhancements. (8) Filled with realized number of HR for each position, who up to Q1-2023 have participated in HR Quality Development in the Non-Technical Field. (9) Filled with realized amount of funds for each position, who up to Q1-2023 have participated in HR Quality Development in the Non-Technical Field. (10) Filled with realized number of HR for each position, who up to Q1-2023 have participated in HR Quality Development in the Leadership Field. (11) Filled with realized amount of funds for each position, who up to Q1-2023 have participated in HR Quality Development in the Leadership Field. (12) Can include outsourced human resources. (13) Filled with Total Realized Number of HR and Realized Amount of Funds in each column (column (2) to column (11)). (14) For filling in columns (2), (4), (6), (8), (10), filled with the sum of each column divided by the number in row (15). For filling in columns (3), (5), (7), (9), (11), filled with the sum of each column divided by the number in row (16). (15) Filled with Number of HR up to Q1-2023. (16) Filled with Number/Projected Gross Salary Expense Previous Year (December 2022 position). (17) Filled with the sum of Realized Amount of Funds in columns (3), (5), (7), (9), and (11) in row (13). (18) Filled with the result of row (17) divided by row (16).

CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
OF THE REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR