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

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REGULATION OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA NUMBER 43 OF 2024 CONCERNING THE DEVELOPMENT OF HUMAN RESOURCE QUALITY FOR FINANCING INSTITUTIONS, VENTURE CAPITAL COMPANIES, MICROFINANCE INSTITUTIONS, AND OTHER FINANCIAL SERVICE INSTITUTIONS

BY THE GRACE OF GOD THE ALMIGHTY,

THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering: that in order to implement the provisions of Article 252 paragraph (4) and Article 253 paragraph (3) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, and to encourage the development of human resource quality in the sector of financing institutions, venture capital companies, microfinance institutions, and other financial service institutions that are integrity-driven, competent, professional, and highly competitive, it is necessary to establish a Financial Services Authority Regulation concerning the Development of Human Resource Quality for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions;

Recalling: 1. 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) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
2. Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);

DECIDES:

To establish: A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE DEVELOPMENT OF HUMAN RESOURCE QUALITY FOR FINANCING INSTITUTIONS, VENTURE CAPITAL COMPANIES, MICROFINANCE INSTITUTIONS, AND OTHER FINANCIAL SERVICE INSTITUTIONS.

CHAPTER I
GENERAL PROVISIONS

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

Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions, hereinafter referred to as PVML, are financial service institutions comprising financing companies, infrastructure financing companies, venture capital companies, microfinance institutions, pawnshop companies, information technology-based joint financing service providers, Indonesia Export Financing Institution, secondary housing financing companies, PT Permodalan Nasional Madani, Badan Pengelola Tabungan Perumahan Rakyat, PT Sarana Multi Infrastruktur (Persero), and other financial service institutions.
Financing Company is a legal entity that conducts financing activities for goods and/or services to the public, including those conducting business activities based on Sharia principles.
Infrastructure Financing Company is a legal entity specifically established to conduct financing activities in the form of providing funds for infrastructure projects and/or carrying out other activities or facilities in support of infrastructure financing, including conducting business activities based on Sharia principles.
Venture Capital Company is a legal entity that conducts venture capital business activities, including those conducting business activities based on Sharia principles.
Microfinance Institution is a financial institution specifically established to provide business development services and community empowerment, either through loans or financing for micro-scale businesses to members and the public, savings management, or providing business development consulting services that are not solely profit-seeking, including those conducting business activities based on Sharia principles.
Pawnshop Company is a legal entity that conducts business activities providing loans secured by movable assets, including those conducting business activities based on Sharia principles.
Information Technology-Based Joint Financing Service Provider, hereinafter referred to as LPBBTI Provider, is an Indonesian legal entity that provides, manages, and operates the provision of financial service offerings to match fund providers with fund recipients in conducting financing, either conventionally or based on Sharia principles, directly through an electronic system using the internet.
Indonesia Export Financing Institution, hereinafter abbreviated as LPEI, is the Indonesia Export Financing Institution, as referred to in the Law concerning the Indonesia Export Financing Institution.
Secondary Housing Financing Company is a company established by the Government of the Republic of Indonesia to conduct secondary housing financing and other activities related to the development of the secondary housing financing market.
PT Permodalan Nasional Madani, hereinafter referred to as PT PNM, is a company established based on Government Regulation of the Republic of Indonesia Number 38 of 1999 concerning State Capital Participation for the Establishment of State-Owned Limited Liability Companies (Persero) in the context of Cooperatives, Small and Medium Enterprises Development.
Badan Pengelola Tabungan Perumahan Rakyat, hereinafter referred to as BP Tapera, is a legal entity formed to manage people's housing savings.
PT Sarana Multi Infrastruktur (Persero), hereinafter referred to as PT SMI (Persero), is a state-owned business entity established based on Government Regulation Number 66 of 2007 concerning State Capital Participation for the Establishment of State-Owned Limited Liability Companies (Persero) in the Infrastructure Financing Sector, as last amended by Government Regulation Number 53 of 2020 concerning the Second Amendment to Government Regulation Number 66 of 2007 concerning State Capital Participation for the Establishment of State-Owned Limited Liability Companies (Persero) in the Infrastructure Financing Sector.
Board of Directors is the PVML organ authorized and fully responsible for managing PVML for the benefit of PVML, in accordance with the aims and purposes of PVML, and representing PVML, both inside and outside of court, in accordance with the articles of association for PVML in the form of a limited liability company, or equivalent to the Board of Directors for PVML in the form of a cooperative legal entity, LPEI, or BP Tapera.
Board of Commissioners is the PVML organ tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors for PVML in the form of a limited liability company, or equivalent to the Board of Commissioners for PVML in the form of a cooperative legal entity, LPEI, or BP Tapera.
Human Resources, hereinafter abbreviated as HR, are members of the Board of Directors, members of the Board of Commissioners, permanent employees, and/or non-permanent employees at PVML, as well as members of the Sharia supervisory board.
Indonesian National Competency Standards, hereinafter abbreviated as SKKNI, is a statement of work capabilities covering knowledge, skills and/or expertise, and work attitudes relevant to the execution of duties and job requirements established in accordance with applicable laws and regulations.
Indonesian National Qualifications Framework, hereinafter abbreviated as KKNI, is a framework for classifying competency qualifications that can align, equate, and integrate between the education sector and the job training sector, as well as work experience, in order to provide recognition of work competencies in accordance with the job structure in various sectors.
Work Competency Certification is the process of issuing work competency certificates conducted systematically and objectively through competency testing in accordance with SKKNI.
Professional Certification Body, hereinafter abbreviated as LSP, is an institution that conducts professional certification activities in the financial services sector that has met the requirements and has obtained a license from the body or institution authorized to conduct professional certification and is registered with the Financial Services Authority in accordance with applicable laws and regulations.
Work Competency Maintenance Program is a competency maintenance program for HR holders of work competency certificates.

CHAPTER II
HUMAN RESOURCE QUALITY DEVELOPMENT

Section One
Management and Continuous Development of HR Quality

Article 2
(1) PVML is required to conduct HR management and continuous HR quality development.
(2) HR management as referred to in paragraph (1) is conducted in accordance with the employee cycle at PVML.
(3) PVML is responsible for conducting HR quality development as referred to in paragraph (1), which is conducted:
a. through the improvement of HR competencies and expertise; and b. by prioritizing and ensuring the equitable distribution of HR work competencies, which is adjusted to the vision, mission, and business strategy of PVML.

Article 3
(1) PVML is required to have a function for HR management and quality development.
(2) PVML is required to have a Board of Directors member who oversees the HR management and quality development function.
(3) The Board of Directors member overseeing the function for HR management and quality development as referred to in paragraph (1) may concurrently serve as a Board of Directors member overseeing other functions at PVML, adjusted to the scale and complexity of PVML. (4) The Board of Directors member overseeing the function for HR management and quality development as referred to in paragraph (1) must be an Indonesian citizen.

Section Two
Provision and Realization of Funds for HR Quality Development

Article 4
(1) PVML is required to provide funds for HR education and training from the current year's budget to support the implementation of HR education and training.
(2) HR education and training funds as referred to in paragraph (1) are used to support the improvement of HR work competencies and expertise.
(3) PVML other than Medium-Scale Microfinance Institutions and Small-Scale Microfinance Institutions are required to provide HR education and training funds 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. (4) Medium-Scale Microfinance Institutions and Small-Scale Microfinance Institutions are required to provide HR education and training funds as referred to in paragraph (1), adjusted to the financial capacity of the respective Microfinance Institution. (5) For PVML that obtain business licenses after this Financial Services Authority Regulation takes effect, the obligation to provide HR education and training funds as referred to in paragraph (3) and paragraph (4) begins to apply on January 1 of the following year. (6) PVML is required to realize all provisions of HR education and training funds for each current year. (7) Under certain conditions, PVML may provide and/or realize HR education and training funds as referred to in paragraph (3) of less than 2.5% (two point five percent) with prior approval from the Financial Services Authority based on a request from PVML. (8) In the event that the provided funds do not reflect sufficiency for HR education and training needs, the Financial Services Authority is authorized to request:
a. PVML other than Medium-Scale Microfinance Institutions and Small-Scale Microfinance Institutions to provide HR education and training funds as referred to in paragraph (3) of more than 2.5% (two point five percent); and/or b. PVML to include HR executing critical activities, functions, and/or positions in Work Competency Certification. (9) PVML is required to implement the requests of the Financial Services Authority as referred to in paragraph (8).

Article 5
(1) PVML may conduct quality development for outsourced HR used, adjusted to the needs of PVML.
(2) PVML is required to ensure that outsourced HR used has competencies suitable for the outsourced job requirements of PVML.
(3) For PVML conducting quality development for outsourced HR as referred to in paragraph (1), the funds expended for outsourced HR education and training are included in the HR education and training funds as referred to in Article 4.

Section Three
Implementation of HR Quality Development

Article 6
(1) The obligation for HR quality development as referred to in Article 2 paragraph (1) is implemented by PVML by including HR in the development of competencies and expertise in technical, non-technical, and/or leadership fields through:
a. Work Competency Certification in the PVML sector; b. Work Competency Certification outside the PVML sector; and/or
c. other improvements in competencies and expertise.
(2) Other improvements in competencies and expertise as referred to in paragraph (1) letter c are conducted through continuous HR education and training programs adjusted to the complexity of PVML.

Article 7
(1) HR quality development can be conducted by:
a. being implemented by PVML; b. being implemented by PVML in cooperation with other parties; and/or
c. PVML including HR in competency and expertise improvement programs organized by other parties.
(2) The implementation of HR quality development as referred to in paragraph (1) is conducted online and/or offline.

Section Four
Systems and Procedures, Planning, Administration, Monitoring, and Reporting of HR Quality Development

Article 8
(1) PVML is required to have internal systems and procedures for continuous HR quality development.
(2) The internal systems and procedures for HR quality development as referred to in paragraph (1) cover at least:
a. needs analysis and planning of HR quality development programs; b. design and development of HR quality development programs, including program objectives, methods, and evaluation;
c. realization of HR quality development programs, including methods of program implementation; and
d. evaluation of implementation and monitoring of HR quality development program realization.

Article 9
PVML is required to formulate an HR quality development program plan in the PVML business plan, except for Small-Scale Microfinance Institutions.

Article 10
(1) PVML is required to continuously monitor the realization of HR quality development programs.
(2) PVML is required to monitor HR participating in HR quality development programs through:
a. Work Competency Certification in the PVML sector; b. Competency Certification other than Work Competency Certification in the PVML sector; and
c. Other improvements in competencies and expertise.

Article 11
(1) PVML is required to administer the realization of HR quality development programs.
(2) PVML submits reporting on the realization of HR quality development programs as referred to in paragraph (1) in the implementation and supervision report of the PVML business plan.
(3) The realization of HR quality development programs as referred to in paragraph (2) for Small-Scale Microfinance Institutions is submitted in the periodic financial reports of the Microfinance Institution.

Section Five
Administrative Sanctions

Article 12
(1) Violations of the provisions as referred to in Article 2 paragraph (1), Article 3 paragraph (1), paragraph (2), Article 4 paragraph (1), paragraph (3), paragraph (4), paragraph (6), paragraph (9), Article 5 paragraph (2), Article 8 paragraph (1), Article 9, Article 10, and/or Article 11 paragraph (1) are subject to administrative sanctions in the form of:
a. written warnings; b. suspension of part or all business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition from becoming controlling shareholders, Directors, Board of Commissioners, and/or Sharia supervisory boards; and/or g. administrative fines.
(2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a.
(3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah).
(4) In the event that PVML has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction.
(5) In the event that a violation of the provisions as referred to in paragraph (1) occurs and the violation has been corrected, the Financial Services Authority provides an administrative sanction in the form of a written warning that ends automatically. (6) In addition to imposing administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:
a. reduce the health assessment results; b. conduct a re-evaluation of the main party causing PVML to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties related to PVML causing PVML to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER III
WORK COMPETENCY CERTIFICATION

Article 13
(1) The Financial Services Authority establishes the fields of Work Competency Certification in the PVML sector as referred to in Article 6 paragraph (1) letter a.
(2) Work Competency Certification in the PVML sector established by the Financial Services Authority as referred to in paragraph (1) is conducted by LSPs registered with the Financial Services Authority.
(3) PVML is required to fulfill Work Competency Certification in the sectors established by the Financial Services Authority as referred to in paragraph (1).

Article 14
(1) Financing Companies are required to ensure the fulfillment of Work Competency Certification provisions as referred to in Article 13 paragraph (1) for HR as follows:
a. members of the Board of Directors of the Financing Company hold expertise certificates in the financing field from an LSP registered with the Financial Services Authority; b. members of the Board of Commissioners of the Financing Company hold expertise certificates in the financing field from an LSP registered with the Financial Services Authority;
c. members of the Board of Directors and officials one (1) level below the Board of Directors of the Financing Company who oversee the risk management function hold expertise certificates in the risk management field from an LSP registered with the Financial Services Authority;
d. employees of the Financing Company holding managerial positions from branch head level up to one level below the Board of Directors hold expertise certificates in the financing field from an LSP registered with the Financial Services Authority; and e. employees and/or outsourced personnel of the Financing Company handling collection and collateral execution functions hold professional certificates in the collection field from an LSP registered with the Financial Services Authority. (2) Pawnshop Companies are required to ensure the fulfillment of Work Competency Certification provisions as referred to in Article 13 paragraph (1) for HR as follows:
a. members of the Board of Directors and members of the Board of Commissioners of the Pawnshop Company hold expertise certificates in the finance field from an LSP registered with the Financial Services Authority; and b. appraisers at the Pawnshop Company hold expertise certificates in the collateral appraisal field from an LSP registered with the Financial Services Authority. (3) LPBBTI Providers are required to ensure the fulfillment of Work Competency Certification provisions as referred to in Article 13 paragraph (1) for members of the Board of Directors, members of the Board of Commissioners, and officials one (1) level below the Board of Directors at the LPBBTI Provider, who hold work competency certificates in the financial technology field according to the qualification level of the position from an LSP registered with the Financial Services Authority. (4) Infrastructure Financing Companies, Venture Capital Companies, LPEI, Secondary Housing Financing Companies, PT PNM, BP Tapera, and PT SMI (Persero) are required to ensure the fulfillment of Work Competency Certification provisions, for members of the Board of Directors and members of the Board of Commissioners holding expertise certifications in the finance field from an LSP registered with the Financial Services Authority. (5) Large-Scale Microfinance Institutions are required to ensure the fulfillment of Work Competency Certification provisions as referred to in Article 13 paragraph (1), for one member of the Board of Directors of the Large-Scale Microfinance Institution holding an expertise certificate in the finance field from an LSP registered with the Financial Services Authority.

Article 15
Provisions regarding the fields of Work Competency Certification in the PVML sector as referred to in Article 13 may be amended, and the amendments are established by the Financial Services Authority.

Article 16
(1) PVML violating the provisions as referred to in Article 13 paragraph (3) and/or Article 14 are subject to administrative sanctions in the form of:
a. written warnings; b. suspension of part or all business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition from becoming controlling shareholders, Directors, Board of Commissioners, and/or Sharia supervisory boards; and/or g. administrative fines.
(2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a.
(3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah).
(4) In the event that PVML has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction.
(5) In the event that a violation of the provisions as referred to in paragraph (1) occurs and the violation has been corrected, the Financial Services Authority provides an administrative sanction in the form of a written warning that ends automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:
a. reduce the health assessment results; b. conduct a re-evaluation of the main party causing PVML to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system; and/or
c. record the track record of parties related to the Company causing the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER IV
OTHER PROVISIONS

Article 17
(1) Competency certificates issued by institutions outside of Indonesia may be recognized as equivalent to certificates issued by PVML sector LSPs, for the same competency fields.
(2) Certificates that can be recognized as equivalent to certificates issued by PVML sector LSPs as referred to in paragraph (1) must have a mutual recognition process:
a. competency certificates recognized by the local country's authority; and/or b. competency certificates issued by reputable international certification institutions.
(3) The equating of competency certificates issued by other institutions outside of Indonesia as referred to in paragraph (2) is conducted by PVML sector LSPs through coordination and/or approval by the institution authorized to conduct professional certification and registered with the Financial Services Authority in accordance with applicable laws and regulations.

Article 18
The development of work competence standards and/or work competence fields in the PVML sector is carried out through coordination between the Financial Services Authority, the PVML sector Competence Certification Agency (LSP), academia, industry associations, and/or professional associations in the PVML sector, as well as institutions authorized to carry out professional certification and registered with the Financial Services Authority, in accordance with applicable legislation.

Article 19
(1) PVML may participate in developing national human resource quality.
(2) In the event that PVML provides funds for participation in the development of national human resource quality as referred to in paragraph (1), the provision of funds shall not be included as funds for human resource 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 the employee recognition policy and the principle of prudence.

Article 20
The Financial Services Authority may grant approval or policies different from this Financial Services Authority Regulation based on certain considerations.

CHAPTER V
TRANSITIONAL PROVISIONS

Article 21
For PVML that have obtained business licenses at the time this Financial Services Authority Regulation takes effect, the provisions regarding:
a. the obligation to have a function that manages and develops human resource quality as referred to in Article 3 paragraph (1); and b. the obligation to have members of the Board of Directors who oversee the function of managing and developing human resource quality as referred to in Article 3 paragraph (2), must be adjusted to the provisions of this Financial Services Authority Regulation within a maximum period of 1 (one) year from the date of promulgation.

Article 22
(1) For Infrastructure Financing Companies that have obtained business licenses at the time this Financial Services Authority Regulation takes effect, LPEI, Secondary Housing Financing Companies, PT PNM, BP Tapera, and PT SMI (Persero), the provisions regarding:
a. the obligation to provide funds for human resource education and training from the current year's budget as referred to in Article 4 paragraph (1); and b. the obligation to provide funds for human resource education and training of at least 2.5% (two point five percent) of the total labor costs of the current year as referred to in Article 4 paragraph (3), are declared to take effect in the fiscal year 2025. (2) For Venture Capital Companies, LPBBTI Organizers, and Pawnshop Companies with a national business scope that have obtained business licenses at the time this Financial Services Authority Regulation takes effect, the provisions regarding:
a. the obligation to provide funds for human resource education and training from the current year's budget as referred to in Article 4 paragraph (1); and b. the obligation to provide funds for human resource education and training of at least 2.5% (two point five percent) of the total labor costs of the current year as referred to in Article 4 paragraph (3), are declared to take effect in the fiscal year 2026. (3) For Pawnshop Companies with provincial and district/city business scopes and Large-scale Microfinance Institutions that have obtained business licenses at the time this Financial Services Authority Regulation takes effect, the provisions regarding:
a. the obligation to provide funds for human resource education and training from the current year's budget as referred to in Article 4 paragraph (1); b. the obligation to provide funds for human resource education and training of at least 2.5% (two point five percent) of the total labor costs of the current year as referred to in Article 4 paragraph (3); and
c. the obligation to provide funds for human resource education and training adjusted according to the financial capacity of Medium-scale Microfinance Institutions and Small-scale Microfinance Institutions,
are declared to take effect in the fiscal year 2027.

Article 23
For PVML that have obtained business licenses at the time this Financial Services Authority Regulation is promulgated, the provisions regarding the obligation to have an internal system and procedure for continuous human resource quality development as referred to in Article 8 paragraph (1) are declared to take effect 6 (six) months from the date this Financial Services Authority Regulation starts to be promulgated.

Article 24
(1) For Pawnshop Companies with a national business scope that have obtained business licenses at the time this Financial Services Authority Regulation is promulgated, the provisions regarding the obligation for members of the Board of Directors and members of the Board of Commissioners to possess expertise certification in the field of finance from an LSP registered with the Financial Services Authority as referred to in Article 14 paragraph (2) letter a, are declared to take effect 1 (one) year from the date this Financial Services Authority Regulation is promulgated. (2) For Pawnshop Companies with provincial and district/city business scopes that have obtained business licenses at the time this Financial Services Authority Regulation is promulgated, the provisions regarding the obligation for members of the Board of Directors and members of the Board of Commissioners to possess expertise certification in the field of finance from an LSP registered with the Financial Services Authority as referred to in Article 14 paragraph (2) letter a, are declared to take effect 2 (two) years from the date this Financial Services Authority Regulation is promulgated. (3) For LPBBTI Organizers that have obtained business licenses at the time this Financial Services Authority Regulation is promulgated, the provisions regarding the obligation for members of the Board of Directors and members of the Board of Commissioners to possess expertise certification in the field of financial technology from an LSP registered with the Financial Services Authority as referred to in Article 14 paragraph (3), are declared to take effect 1 (one) year from the date this Financial Services Authority Regulation is promulgated. (4) For Infrastructure Financing Companies and Venture Capital Companies that have obtained business licenses at the time this Financial Services Authority Regulation is promulgated, LPEI, Secondary Housing Financing Companies, PT PNM, BP Tapera, and PT SMI (Persero), the provisions regarding the obligation for members of the Board of Directors and members of the Board of Commissioners to possess expertise certification in the field of finance from an LSP registered with the Financial Services Authority as referred to in Article 14 paragraph (4), are declared to take effect 1 (one) year from the date this Financial Services Authority Regulation is promulgated. (5) For Large-scale Microfinance Institutions that have obtained business licenses at the time this Financial Services Authority Regulation is promulgated, the provision that one member of the Board of Directors of a Large-scale Microfinance Institution possesses an expertise certificate in the field of finance from an LSP registered with the Financial Services Authority as referred to in Article 14 paragraph (5), is declared to take effect 3 (three) years from the date this Financial Services Authority Regulation is promulgated.

Article 25
Work Competency Certificates in the PVML field obtained from:
a. LSPs registered with the Financial Services Authority; b. associations overseeing PVML; and/or
c. other parties designated by the Financial Services Authority,
obtained before this Financial Services Authority Regulation is promulgated are declared to remain valid.

Article 26
(1) In the event that the LSP conducting Work Competency Certification in the field of collateral asset appraisal as referred to in Article 14 paragraph (2) letter b has not yet been formed, Work Competency Certification in the field of collateral asset appraisal can be conducted by the association overseeing Pawnshop Companies or other parties designated by the Financial Services Authority. (2) In the event that the LSP conducting Work Competency Certification in the field of financial technology as referred to in Article 14 paragraph (3) has not yet been formed, Work Competency Certification in the field of financial technology is conducted by the association overseeing LPBBTI Organizers or other parties designated by the Financial Services Authority.

Article 27
Associations or other parties that have conducted certification in the PVML field and are not yet registered with the Financial Services Authority at the time this Financial Services Authority Regulation is established must meet the requirements as an LSP registered with the Financial Services Authority within a maximum period of 3 (three) years from the date this Financial Services Authority Regulation takes effect.

Article 28
(1) Administrative sanctions that have been imposed on PVML based on:
a. Financial Services Authority Regulation of the Republic of Indonesia Number 31/POJK.05/2016 concerning Pawnshop Business (State Gazette of the Republic of Indonesia Year 2016 Number 152, Supplement to the State Gazette of the Republic of Indonesia Number 5913); b. Financial Services Authority Regulation of the Republic of Indonesia Number 35/POJK.05/2018 concerning the Conduct of Financing Company Business (State Gazette of the Republic of Indonesia Year 2018 Number 260, Supplement to the State Gazette of the Republic of Indonesia Number 6286) as amended by Financial Services Authority Regulation of the Republic of Indonesia Number 7/POJK.05/2022 Amendment to Financial Services Authority Regulation of the Republic of Indonesia Number 35/POJK.05/2018 concerning the Conduct of Financing Company Business (State Gazette of the Republic of Indonesia Year 2022 Number 125, Supplement to the State Gazette of the Republic of Indonesia Number 6795);
c. Financial Services Authority Regulation of the Republic of Indonesia Number 10/POJK.05/2019 concerning the Conduct of Shariah Financing Company Business and Shariah Business Units of Financing Companies (State Gazette of the Republic of Indonesia Year 2019 Number 40, Supplement to the State Gazette of the Republic of Indonesia Number 6320);
d. Financial Services Authority Regulation of the Republic of Indonesia Number 47/POJK.05/2020 concerning Business Licensing and Institutionalization of Financing Companies and Shariah Financing Companies (State Gazette of the Republic of Indonesia Year 2020 Number 264, Supplement to the State Gazette of the Republic of Indonesia Number 6582); and e. Financial Services Authority Regulation of the Republic of Indonesia Number 10 of 2022 concerning Technology-Based Crowdfunding Services (State Gazette of the Republic of Indonesia Year 2022 Number 2/OJK, Supplement to the State Gazette of the Republic of Indonesia Number 2/OJK), are declared to remain valid. (2) PVML that have not been able to overcome the causes of the imposition of administrative sanctions as referred to in paragraph (1) will be subject to administrative sanctions in accordance with the procedures for imposing administrative sanctions regulated in this Financial Services Authority Regulation.

CHAPTER VI
FINAL PROVISIONS

Article 29
At the time this Financial Services Authority Regulation takes effect, Financial Services Authority Regulation Number 24/POJK.05/2019 concerning the Business Plan of Non-Bank Financial Service Institutions (State Gazette of the Republic of Indonesia Year 2019 Number 175, Supplement to the State Gazette of the Republic of Indonesia Number 6392) and its implementing provisions are declared to still remain valid insofar as they do not conflict with the provisions in this Financial Services Authority Regulation.

Article 30
At the time this Financial Services Authority Regulation takes effect, the following provisions:
a. Article 19 paragraph (3) of Financial Services Authority Regulation of the Republic of Indonesia Number 31/POJK.05/2016 concerning Pawnshop Business (State Gazette of the Republic of Indonesia Year 2016 Number 152, Supplement to the State Gazette of the Republic of Indonesia Number 5913); b. Articles 65 to 67 of Financial Services Authority Regulation of the Republic of Indonesia Number 35/POJK.05/2018 concerning the Conduct of Financing Company Business (State Gazette of the Republic of Indonesia Year 2018 Number 260, Supplement to the State Gazette of the Republic of Indonesia Number 6286) as amended by Financial Services Authority Regulation of the Republic of Indonesia Number 7/POJK.05/2022 Amendment to Financial Services Authority Regulation of the Republic of Indonesia Number 35/POJK.05/2018 concerning the Conduct of Financing Company Business (State Gazette of the Republic of Indonesia Year 2022 Number 125, Supplement to the State Gazette of the Republic of Indonesia Number 6795);
c. Articles 62 to 64 of Financial Services Authority Regulation of the Republic of Indonesia Number 10/POJK.05/2019 concerning the Conduct of Shariah Financing Company Business and Shariah Business Units of Financing Companies (State Gazette of the Republic of Indonesia Year 2019 Number 40, Supplement to the State Gazette of the Republic of Indonesia Number 6320);
d. Article 21 of Financial Services Authority Regulation of the Republic of Indonesia Number 47/POJK.05/2020 concerning Business Licensing and Institutionalization of Financing Companies and Shariah Financing Companies (State Gazette of the Republic of Indonesia Year 2020 Number 264, Supplement to the State Gazette of the Republic of Indonesia Number 6582); and e. Article 16 of Financial Services Authority Regulation of the Republic of Indonesia Number 10 of 2022 concerning Technology-Based Crowdfunding Services (State Gazette of the Republic of Indonesia Year 2022 Number 2/OJK, Supplement to the State Gazette of the Republic of Indonesia Number 2/OJK), are repealed and declared invalid.

Article 31
This Financial Services Authority Regulation takes effect on the date of promulgation.

This copy is consistent with the original
Director of Legal Development
Legal Department signed
Aat Windradi

In order for everyone to know it, ordering the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Established in Jakarta on December 24, 2024
DEPUTY CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA AS A MEMBER OF THE COMMISSIONERS BOARD REPLACING THE CHAIRMAN OF THE COMMISSIONERS BOARD FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA, signed MIRZA ADITYASWARA

Promulgated in Jakarta on December 27, 2024
MINISTER OF LAW OF THE REPUBLIC OF INDONESIA, signed SUPRATMAN ANDI AGTAS

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2024 NUMBER 56/OJK

EXPLANATION
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 43 OF 2024
CONCERNING
THE DEVELOPMENT OF HUMAN RESOURCE QUALITY FOR FINANCING INSTITUTIONS, VENTURE CAPITAL COMPANIES, MICROFINANCE INSTITUTIONS, AND OTHER FINANCIAL SERVICE INSTITUTIONS

I. GENERAL
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 sector have good integrity, competence, and professionalism, as well as high competitiveness, continuous development of PVML human resource quality 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 make to support the development of human resource quality is through the provision of funds for human resource education and training to improve human resource competence and expertise or develop other competencies in technical, non-technical, and leadership or managerial competence fields. In formulating a strategy for sustainable human resource quality development, a system and procedure are needed as a guide for PVML. In addition, coordination from various stakeholders related to the development of PVML human resource quality is required, including the Financial Services Authority, LSPs in the PVML sector, relevant PVML associations, professional associations in the PVML sector, academia, and other competent government agencies and ministries/institutions. The provision of Article 252 paragraph (4) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector has mandated the need for more detailed regulations regarding funds for human resource education and training to improve the quality of human resources in the PVML sector. In this regard, regulations regarding the development of PVML human resource quality are needed, which are compiled in an integrated manner and regulate all financial service institutions in the PVML sector.

II. ARTICLE BY ARTICLE
Article 1
Clearly sufficient.

Article 2
Paragraph (1)
What is meant by "continuously" is the management and development of human resource quality carried out continuously, systematically, planned, and objectively to anticipate the development of the PVML sector and the financial services sector in the future. Paragraph (2) What is meant by "employee cycle in PVML" covers various stages undergone by human resources, including strategy and planning, fulfillment or recruitment, orientation and adaptation (onboarding), culture, training and development, performance and reward management, career development, talent or succession management, termination, and pension programs (offboarding). Paragraph (3) The development of human resource quality adjusted to the vision, mission, and business strategy of PVML is intended among others to:
a. support the achievement of PVML's business goals; b. anticipate trends in business development and information technology innovation by preparing human resources with digital insight; and
c. increase human resource work competence standards.

Article 3
Clearly sufficient.

Article 4
Paragraph (1)
Funds for human resource education and training include all funds provided by PVML recorded in the PVML profit and loss position, including those related to certification programs, training, formal education, mentoring, and/or secondment, including travel costs, consumption, application loading and/or maintenance, handbooks, modules, licenses/software, subscriptions, e-library/journal subscriptions, and room renovation costs, to support human resource education and training activities in technical and/or non-technical fields. Funds for human resource education and training do not include funds that are not directly related to human resource education and training in technical and/or non-technical fields. Example:
capital expenditure on facilities that will be recorded as fixed assets.
What is meant by "current year" is the year starting from January to December.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
The grouping of microfinance institution business scales consisting of small-scale MFI, medium-scale MFI, and large-scale MFI is in accordance with the Financial Services Authority Regulation concerning microfinance institutions.
What is meant by "labor costs" is the labor costs in the non-consolidated financial statements as referred to in the Financial Services Authority regulations concerning monthly reports of PVML.
Paragraph (4)
Clearly sufficient.
Paragraph (5)
PT XYZ Finance which obtains a business license as a financing company on March 31, 2025, is obligated to provide funds for human resource education and training of at least 2.5% (two point five percent) of the total labor costs of the current year calculated from January 1, 2026. Paragraph (6) Clearly sufficient. Paragraph (7) What is meant by "certain conditions" includes among others:
a. force majeure; and/or b. PVML is determined to be in rehabilitation or other conditions so that the provision of funds for human resource education and training has a material impact on PVML's capital.
Force majeure is a disaster situation that cannot be avoided, consisting of:
a. natural disasters; b. non-natural disasters; and/or
c. social disasters,
which are approved by officials of competent local government agencies and/or can be verified for truthfulness by the Financial Services Authority.
Paragraph (8)
The adequacy of fund provision for human resource education and training needs is reviewed among others from the results of supervision or examination by the Financial Services Authority.
Letter a
Clearly sufficient.
Letter b
What is meant by "critical functions and/or positions" are core functions and/or positions in PVML operational activities that are strategic or have potential risks that can affect the development of PVML business activities.
Example: officials in the financing field responsible for handling problematic financing, including in Financing Companies.
Paragraph (9)
Clearly sufficient.

Article 5
Paragraph (1)
What is meant by "outsourced human resources" is human resources or workers from outsourcing service provider companies working at PVML through a work contracting agreement and/or through a labor supply service agreement.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.

Article 6
Paragraph (1)
What is meant by "competence in the technical field" is knowledge, skills, and attitudes or behaviors that can be observed, measured, and developed, relating to the technical field in performing functions, jobs, or positions at PVML.
What is meant by "competence in the non-technical field" is knowledge, skills, and attitudes or behaviors that can be observed, measured, and developed, relating to interactions both intrapersonally and interpersonally in performing functions, jobs, or positions at PVML, including for leading and/or managing PVML and/or PVML organizational units. Letter a What is meant by "Work Competency Certification in the PVML sector" is Work Competency Certification conducted in accordance with SKKNI and KKNI for PVML that has been established by competent authorities. Work Competency Certification in the PVML sector includes among others in the fields of financing, collateral asset appraisers, financial technology, risk management, and Shariah supervisors for Shariah supervisory boards. Letter b What is meant by "Work Competency Certification other than in the PVML sector" is other certifications related to activities in the PVML industrial sector in the form of international or domestic certification programs, including among others in the fields of banking, capital markets, insurance, guaranteeing, pension funds, financial planning, information technology, audit, and Islamic finance. Letter c What is meant by "Other Competence and Expertise Enhancement" is the development of human resource quality through the enhancement of human resource competence and expertise other than competency certification, including among others through continuous formal education programs, leadership education, communication, and other interpersonal skills, mentoring, internships, socialization, workshops, seminars, and other programs that support PVML operations. Paragraph (2) Clearly sufficient.

Article 7
Paragraph (1)
Letter a
What is meant by "carried out by PVML" is the implementation of human resource quality development using own resources.
Example:
implementing training (in-house training) with external and/or internal company instructors and implementing learning or training digitally

through a learning management system.

Letter b
What is meant by "implemented by PVML in cooperation with other parties" is the implementation of human resource quality development conducted with external parties, including Financing Institutions with rural economic banks, commercial banks, and/or other institutions.

Other institutions include, among others, authorities, ministries or agencies, campuses, consultants, industry associations, certification bodies, and educational institutions.

Letter c
Clearly sufficient.

Paragraph (2)
Clearly sufficient.

Article 8
Paragraph (1)
What is meant by "having a system and internal procedures for continuous human resource quality development" is having a human resource quality development system and procedures that are continuously improved systematically, planned, and objectively in line with the vision, mission, and business strategy of PVML.

Paragraph (2)
The form or method of the internal system and procedures is based on PVML's internal policies. Systems and procedures are required so that PVML can determine necessary actions so that the implementation of human resource quality development runs according to plan, overcomes existing competency gaps, and aligns with the vision, mission, and business strategy of PVML.

Letter a
Planning and needs analysis are prepared by assessing and identifying competency gaps or human resource needs that need to be improved. Human resource competency needs are, among others, prepared for the long term and to meet current human resource competency needs. In identifying competency gaps or human resource competency needs, PVML considers, among others, human resource competency standards in accordance with the applicable National Competency Standards (SKKNI) and National Qualification Framework (KKNI) established by the competent authority for PVML.

Letter b
The design and development of programs are prepared by determining the plan or form of human resource quality development programs, including objectives, methods, and program evaluation.

Letter c
The implementation of PVML's human resource quality development programs based on the designed and developed programs or other needs, among others, considers time, place, budget, and methods (online and offline).

Letter d
Evaluation of implementation and monitoring of the realization of PVML's human resource quality development programs, among others, to measure the impact of program implementation on the improvement of human resource quality, which can be done by analyzing the achievement of planned activities. Evaluation results include, among others, conclusions and suggestions for improving future human resource quality development programs.

Article 9
The format for compiling and the procedure for submitting the human resource quality development plan in the business plan is in accordance with the Financial Services Authority Regulation regarding the business plan of non-bank financial service institutions.

Article 10
Paragraph (1)
Monitoring the realization of human resource quality development is conducted, among others, on:
a. fulfillment of certification for specific positions in PVML established by the Financial Services Authority; b. realization of human resource quality development programs;
c. equitable distribution of human resource quality development programs across PVML; and
d. competency gap analysis, so that PVML can determine necessary actions so that the implementation of human resource quality development runs according to plan, overcomes existing competency gaps, and aligns with the vision, mission, and strategy of PVML. The form or method of the internal system and/or procedures is based on PVML's internal policies.

Paragraph (2)
Letter a
Clearly sufficient.

Letter b
Clearly sufficient.

Letter c
Improvement of competencies and other skills, among others, includes education and human resource training aimed at increasing employee capacity regarding consumer and community protection regulations in the financial service sector.

Article 11
Paragraph (1)
Administration of the realization of human resource quality development programs is conducted, among others, on:
a. documents of the implementation of Work Competency Certification in the PVML sector, Work Competency Certification outside the PVML sector, and the implementation of other competency and skill improvements, including documents of the Work Competency Maintenance Program; b. a list of human resources participating in human resource quality development programs; and
c. proof of payment for the implementation of human resource quality development programs.

Paragraph (2)
The format for compiling and the procedure for submitting the realization of the human resource quality development plan in the implementation and supervision report of the business plan is in accordance with the Financial Services Authority Regulation regarding the business plan of non-bank financial service institutions.