OJK Regulation No. 47/POJK.03/2017 on the Obligation to Provide Education and Training Funds for Human Resource Development of Rural Banks and Sharia Rural Financing Banks

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 47 /POJK.03/2017
CONCERNING
THE OBLIGATION TO PROVIDE EDUCATION AND TRAINING FUNDS FOR HUMAN RESOURCE DEVELOPMENT OF RURAL BANKS AND SHARIA RURAL FINANCING BANKS WITH THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that to improve performance and develop a healthy Rural Bank or Sharia Rural Financing Bank industry, professional human resources are needed; b. that to form professional human resources, Rural Banks or Sharia Rural Financing Banks are required to increase the knowledge, abilities, and skills of human resources through continuous education and training;
c. that to implement education and training for Rural Bank and Sharia Rural Financing Bank human resources, good and planned costs and preparations are required;
d. that in connection with the transfer of the function, duties, and authority for the regulation and supervision of financial services in the banking sector from Bank Indonesia to the Financial Services Authority, it is necessary to regulate again the obligation to provide education and training funds for the human resource development of Rural Banks or Sharia Rural Financing Banks; e. that with the considerations as referred to in letters a through d, it is necessary to establish a Financial Services Authority Regulation concerning the Obligation to Provide Education and Training Funds for Human Resource Development of Rural Banks or Sharia Rural Financing Banks in a Financial Services Authority Regulation;

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 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 OBLIGATION TO PROVIDE EDUCATION AND TRAINING FUNDS FOR HUMAN RESOURCE DEVELOPMENT OF RURAL BANKS AND SHARIA RURAL FINANCING BANKS.

CHAPTER I
GENERAL PROVISIONS
Article 1
In this Financial Services Authority Regulation, the following terms are defined as:

1. Rural Bank, hereinafter abbreviated as BPR, is a bank that conducts conventional business activities and does not provide payment transaction services in its activities.
2. Sharia Rural Financing Bank, hereinafter abbreviated as BPRS, is a bank that conducts business activities based on Sharia principles and does not provide payment transaction services in its activities.
3. Human Resources, hereinafter abbreviated as HR, are:
   a. members of the Board of Directors and members of the Board of Commissioners of BPR or BPRS; b. members of the Sharia Supervisory Board of BPRS; and
   c. employees of BPR or BPRS.
4. Board of Directors:
   a. for BPR and BPRS in the form of a Limited Liability Company, are the board of directors as referred to in Law Number 40 of 2007 concerning Limited Liability Companies; b. for BPR in the form of a legal entity:
   1) Regional Public Enterprise or Regional State-Owned Enterprise are the board of directors as referred to in Law Number 23 of 2014 concerning Regional Government as amended several times, lastly with Law Number 9 of 2015 concerning the Second Amendment to Law Number 23 of 2014 concerning Regional Government;
   2) Regional Enterprise are the board of directors at BPRs that have not changed their legal entity form into a Regional Public Enterprise or Regional State-Owned Enterprise as referred to in Law Number 23 of 2014 concerning Regional Government as amended several times, lastly with Law Number 9 of 2015 concerning the Second Amendment to Law Number 23 of 2014 concerning Regional Government;
   c. for BPR in the form of a Cooperative legal entity are the managers as referred to in Law Number 25 of 1992 concerning Cooperatives.
5. Board of Commissioners:
   a. for BPR and BPRS in the form of a Limited Liability Company are the board of commissioners as referred to in Law Number 40 of 2007 concerning Limited Liability Companies; b. for BPR in the form of a legal entity:
   1) Regional Public Enterprise is the supervisory board as referred to in Law Number 23 of 2014 concerning Regional Government as amended several times, lastly with Law Number 9 of 2015 concerning the Second Amendment to Law Number 23 of 2014 concerning Regional Government;
   2) Regional State-Owned Enterprise is the commissioner as referred to in Law Number 23 of 2014 concerning Regional Government as amended several times, lastly with Law Number 9 of 2015 concerning the Second Amendment to Law Number 23 of 2014 concerning Regional Government;
   3) Regional Enterprise is the supervisor at BPRs that have not changed their legal entity form into a Regional Public Enterprise or Regional State-Owned Enterprise as referred to in Law Number 23 of 2014 concerning Regional Government as amended several times, lastly with Law Number 9 of 2015 concerning the Second Amendment to Law Number 23 of 2014 concerning Regional Government;
   c. for BPR in the form of a Cooperative legal entity is the supervisor as referred to in Law Number 25 of 1992 concerning Cooperatives.
6. Sharia Supervisory Board, hereinafter abbreviated as DPS, is a board tasked with providing advice and suggestions to the Board of Directors and supervising BPRS activities to ensure compliance with Sharia Principles, as referred to in Law Number 21 of 2008 concerning Sharia Banking.
7. Education and Training Fund is the fund provided by BPR or BPRS for the development of Human Resources through the improvement of knowledge and skills in the banking field, including BPR or BPRS operations, marketing, and management.
8. Business Plan is a written document describing the development plan and business activities of BPR or BPRS over a certain period and the strategy to realize such plan in accordance with the set targets and timeframes.

CHAPTER II
EDUCATION AND TRAINING FUNDS
Article 2
(1) BPR and BPRS are required to provide Education and Training Funds.
(2) The Education and Training Funds as referred to in paragraph (1) are set at least at 5% (five percent) of the previous year's HR cost realization.

Article 3
(1) BPR and BPRS are required to fulfill the obligation to provide Education and Training Funds as referred to in Article 2 paragraph (2) of at least 5% (five percent) every year.
(2) In the event that BPR and BPRS have fulfilled the obligation to provide Education and Training Funds as referred to in paragraph (1), but it is still insufficient to include HR in education and training, BPR and BPRS are required to increase the Education and Training Funds so that they can include at least 1 (one) person in education and training.

Article 4
(1) The implementation of education and training financed by the Education and Training Fund as referred to in Article 2 can be done by:
a. being implemented by BPR or BPRS itself; b. participating in education conducted by another BPR or BPRS;
c. jointly organizing education with another BPR or BPRS;
d. sending HR to participate in education and training organized by banking educational institutions; and/or e. including HR in the human resource work competency certification program of BPR or BPRS.
(2) The work competency certification program for BPR or BPRS HR as referred to in paragraph (1) letter e must be organized by a Professional Certification Agency as referred to in the Financial Services Authority Regulation concerning work competency certification for members of the Board of Directors and members of the Board of Commissioners of BPR and BPRS. (3) The implementation of education and training as referred to in paragraph (1) must be organized by parties having the ability and/or knowledge in the banking field, whether from internal or external to BPR or BPRS. (4) The implementation of education and training as referred to in paragraph (1) is conducted by instructors who have experience in the banking field and/or other financial fields.

Article 5
(1) The Board of Directors is required to prepare an annual education and training plan by considering the principles of priority and equal distribution of HR knowledge and skills.
(2) The education and training plan as referred to in paragraph (1) must obtain approval from the Board of Commissioners of BPR or BPRS.
(3) The annual education and training plan as referred to in paragraph (1) is submitted to the Financial Services Authority in the Business Plan of BPR or BPRS as referred to in the Financial Services Authority Regulation concerning the Business Plan of BPR and BPRS.

Article 6
BPR and BPRS that have not realized the entire Education and Training Fund as referred to in Article 3 paragraph (1) by the end of the year are required to add the remaining unrealized Education and Training Fund to the Education and Training Fund of the following year.

CHAPTER III
REPORTS
Article 7
The realization of the education and training plan as referred to in Article 5 paragraph (1) is submitted to the Financial Services Authority in the realization report of the Business Plan and the supervision report of the Business Plan as referred to in the Financial Services Authority Regulation concerning the Business Plan of BPR and BPRS.

Article 8
The reports as referred to in Article 5 paragraph (3) and Article 7 are submitted to the Financial Services Authority at the address as referred to in the Financial Services Authority Regulation concerning the Business Plan of BPR and BPRS.

CHAPTER IV
SANCTIONS
Article 9
BPR or BPRS that violate the provisions as regulated in Article 2, Article 3, Article 4 paragraph (3), Article 5 paragraph (1), Article 5 paragraph (2), and Article 6 are subject to administrative sanctions in the form of a written reprimand.

CHAPTER V
TRANSITIONAL PROVISIONS
Article 10
The realization of the education and training plan as referred to in Article 7 for the 2017 period is reported to the Financial Services Authority in the Implementation Report of the Work Plan by the Board of Commissioners of BPR and BPRS as referred to in the Decision of the Board of Directors of Bank Indonesia Number 31/60/KEP/DIR dated July 9, 1998 concerning the Work Plan and Implementation Report of the Work Plan of Rural Banks.

CHAPTER VI
CLOSING
Article 11
Upon the commencement of this Financial Services Authority Regulation, Bank Indonesia Regulation Number 5/14/PBI/2003 concerning the Obligation to Provide Education and Training Funds for Human Resource Development of Rural Banks (State Gazette of the Republic of Indonesia Year 2003 Number 90 DPBR/BPS, Supplement to the State Gazette of the Republic of Indonesia Number 4308 DPBR/DPS) is repealed and declared invalid.

This copy is in accordance with the original
Legal Director 1
Legal Department signed
Yuliana

Article 12
This Financial Services Authority Regulation takes effect on the date of its promulgation.
To ensure that everyone knows it, the promulgation of this Financial Services Authority Regulation is ordered by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on July 12, 2017
CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD

Promulgated in Jakarta on July 12, 2017
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 153