Utilization of Foreign Workers and Knowledge Transfer Programs in the Banking Sector

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 37/POJK.03/2017
CONCERNING
THE UTILIZATION OF FOREIGN WORKERS AND KNOWLEDGE TRANSFER PROGRAMS IN THE BANKING SECTOR BY THE GRACE OF THE ALMIGHTY GOD, THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that with the increasing openness of opportunities for foreign parties to invest in the national banking sector, this brings consequences regarding the increased utilization of foreign workers by banks; b. that the utilization of foreign workers is also intended to meet the shortage of experts in certain fields that continue to develop in the banking sector;
c. that the utilization of foreign workers by banks must be able to increase the capacity of Indonesian workers through knowledge transfer;
d. that in connection with the shift of functions, 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 utilization of foreign workers and knowledge transfer programs in the banking sector; e. that based on the considerations as referred to in letters a through d, it is necessary to establish a Financial Services Authority Regulation concerning the Utilization of Foreign Workers and Knowledge Transfer Programs in the Banking Sector; 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 13 of 2003 concerning Manpower (State Gazette of the Republic of Indonesia Year 2003 Number 39, Supplement to the State Gazette of the Republic of Indonesia Number 4279);
3. 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);
4. 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 UTILIZATION OF FOREIGN WORKERS AND KNOWLEDGE TRANSFER PROGRAMS IN THE BANKING SECTOR.

CHAPTER I
GENERAL PROVISIONS
Article 1
In this Financial Services Authority Regulation, the following definitions apply:

1. Bank is a General Bank as referred to in Law Number 7 of 1992 concerning Banking as amended by Law Number 10 of 1998 concerning Amendments to Law Number 7 of 1992 concerning Banking, including branch offices of banks located outside the country, and Sharia General Banks as referred to in Law Number 21 of 2008 concerning Sharia Banking.
2. Foreign Worker is a foreign citizen holding a visa for the purpose of working within the territory of the Republic of Indonesia.
3. Indonesian Worker is an Indonesian citizen worker.
4. Expert Qualification is the fulfillment of requirements for expertise in a specific field obtained from education and work experience.
5. Board of Directors is:
   a. for Banks in the form of a Limited Liability Company (Perseroan Terbatas), the Board of Directors as referred to in Law Number 40 of 2007 concerning Limited Liability Companies; b. for Banks in the form of legal entities:

1. Regional Public Enterprises or Regional State-Owned Enterprises (Perusahaan Umum Daerah or Perusahaan Perseroan Daerah), the Board of Directors as referred to in Law Number 23 of 2014 concerning Regional Government as amended several times, most recently by Law Number 9 of 2015 concerning the Second Amendment to Law Number 23 of 2014 concerning Regional Government;
2. Regional Enterprises, the Board of Directors at Banks that have not yet been converted into Regional Public Enterprises or Regional State-Owned Enterprises as referred to in Law Number 23 of 2014 concerning Regional Government as amended several times, most recently by Law Number 9 of 2015 concerning the Second Amendment to Law Number 23 of 2014 concerning Regional Government;
   c. for Banks in the form of a Cooperative legal entity, the management as referred to in Law Number 25 of 1992 concerning Cooperatives;
   d. for branch offices of banks located outside the country, the head of the branch office of the bank located outside the country, namely the branch office head and officials one level below the branch office head.

6. Board of Commissioners is:
   a. for Banks in the form of a Limited Liability Company (Perseroan Terbatas), the Board of Commissioners as referred to in Law Number 40 of 2007 concerning Limited Liability Companies; b. for Banks in the form of legal entities:

1. Regional Public Enterprises, the supervisory board as referred to in Law Number 23 of 2014 concerning Regional Government as amended several times, most recently by Law Number 9 of 2015 concerning the Second Amendment to Law Number 23 of 2014 concerning Regional Government;
2. Regional State-Owned Enterprises, commissioners as referred to in Law Number 23 of 2014 concerning Regional Government as amended several times, most recently by Law Number 9 of 2015 concerning the Second Amendment to Law Number 23 of 2014 concerning Regional Government;
3. Regional Enterprises, supervisors at Banks that have not yet been converted into Regional Public Enterprises or Regional State-Owned Enterprises as referred to in Law Number 23 of 2014 concerning Regional Government as amended several times, most recently by Law Number 9 of 2015 concerning the Second Amendment to Law Number 23 of 2014 concerning Regional Government;
   c. for Banks in the form of a Cooperative legal entity, supervisors as referred to in Law Number 25 of 1992 concerning Cooperatives.

7. Head of Branch Office of a Bank Located Outside the Country is the branch office head and officials one level below the branch office head of the bank located outside the country.
8. Representative Office Head is an official appointed by the head office of a bank located outside the country to lead the representative office in Indonesia.
9. Executive Official is an official who is directly responsible to members of the Board of Directors or has significant influence over the policy and/or operations of the Bank.
10. Expert or Consultant is an individual who has specific technical knowledge with adequate Expert Qualification standards.
11. Control is an action aimed at influencing the management and/or policy of a company, including Banks, in any manner, whether directly or indirectly.
12. Controlling Shareholder for Banks, hereinafter abbreviated as CSB, is a legal entity, individual, and/or business group that:
    a. holds shares of the company or Bank amounting to 25% (twenty-five percent) or more of the issued shares and has voting rights; or b. holds shares of the company or Bank less than 25% (twenty-five percent) of the issued shares and has voting rights but can be proven to have exercised Control over the company or Bank, whether directly or indirectly.

Article 2
(1) Banks may utilize Foreign Workers in conducting their business activities by fulfilling the provisions in this Financial Services Authority Regulation.
(2) The utilization of Foreign Workers by Banks as referred to in paragraph (1) must consider the availability of Indonesian Workers.

Article 3
Banks may only utilize Foreign Workers as referred to in Article 2 for positions as follows or equivalent:
a. Board of Directors and Board of Commissioners; b. Executive Officials; and/or
c. Experts or Consultants.

Article 4
(1) Banks may only utilize Foreign Workers in specific duty fields.
(2) The utilization of Foreign Workers in duty fields other than specific duty fields as referred to in paragraph (1) may only be conducted after obtaining prior approval from the Financial Services Authority. (3) The approval of the Financial Services Authority as referred to in paragraph (2) is used as the basis for recommendations for the use of Foreign Workers by Banks to the agency handling manpower affairs. (4) Further provisions regarding the utilization of Foreign Workers in specific duty fields as referred to in paragraph (1) as well as requirements and procedures for approval requests as referred to in paragraph (2) are established in a Financial Services Authority Circular Letter.

Article 5
Banks are prohibited from utilizing Foreign Workers in duty fields:
a. Human Resources (Personalia); and b. Compliance.

CHAPTER II
UTILIZATION OF FOREIGN WORKERS BY BANKS

Article 6
(1) Banks must submit plans for the utilization of Foreign Workers to the Financial Services Authority.
(2) Plans for the utilization of Foreign Workers as referred to in paragraph (1) must be included in the Bank's Business Plan.
(3) Changes to plans for the utilization of Foreign Workers as referred to in paragraph (1) must be included in changes to the Bank's Business Plan.
(4) The utilization of Foreign Workers outside the plan as referred to in paragraph (1) may only be conducted with the approval of the Financial Services Authority and fulfilling the following provisions:
a. in the event that the utilization of Foreign Workers is conducted before the submission of changes to the Bank's Business Plan, the Bank must report the utilization of Foreign Workers in the changes to the Bank's Business Plan; or b. in the event that the utilization of Foreign Workers is conducted after the submission of changes to the Bank's Business Plan, the Bank must report the utilization of Foreign Workers in the Bank's Business Plan Realization Report.

Article 7
Banks must request approval from the Financial Services Authority before appointing Foreign Workers to positions as Board of Directors, Board of Commissioners, and/or Executive Officials.

Article 8
Foreign Workers as Board of Directors and/or Board of Commissioners must fulfill the following requirements:
a. are stated as approved in the suitability and propriety assessment; and b. have knowledge about Indonesia, particularly regarding the economy, culture, and Indonesian language.

Article 9
(1) Foreign Workers as Executive Officials must fulfill the following requirements:
a. have experience and expertise corresponding to the duty field to be occupied; b. do not hold concurrent positions at Banks, companies, or other institutions; and
c. are able to use the Indonesian language adequately.
(2) The utilization of Foreign Workers as referred to in paragraph (1) must fulfill the following requirements:
a. the executive position to be occupied is at 1 (one) level below the Director; b. is only permitted for positions located at the Bank's head office;
c. considers the availability of Indonesian Workers for the required fields and expertise; and
d. the duration of utilization for each Foreign Worker as referred to in paragraph (1) is at most 3 (three) years and can be extended 1 (one) time for at most 1 (one) year.

Article 10
(1) Banks must report the appointment of Foreign Workers as Experts or Consultants to the Financial Services Authority.
(2) Banks must submit reports on the appointment of Foreign Workers as Experts or Consultants as referred to in paragraph (1) at most 10 (ten) working days after the appointment.

Article 11
Foreign Workers as Experts or Consultants must fulfill the following requirements:
a. Expert Qualification; b. do not hold concurrent positions at Banks, companies, or other institutions;
c. consider the availability of Indonesian Workers for the required fields and expertise; and
d. the duration of utilization for each Foreign Worker as an Expert or Consultant is at most 3 (three) years and can be extended 1 (one) time for at most 1 (one) year.

Article 12
(1) Banks with 25% (twenty-five percent) or more of their shares owned by foreign citizens and/or foreign legal entities may utilize Foreign Workers for positions:
a. Board of Directors; b. Board of Commissioners;
c. Executive Officials; and/or
d. Experts or Consultants.
(2) The provisions as referred to in paragraph (1) do not apply to Banks in the form of branch offices of banks located outside the country.
(3) The majority of Board of Directors members as referred to in paragraph (1) letter a must be Indonesian citizens.
(4) 50% (fifty percent) or more of Board of Commissioners members as referred to in paragraph (1) letter b must be Indonesian citizens.
(5) The majority of Executive Officials at the Bank's head office must be Indonesian citizens.

Article 13
(1) Banks with less than 25% (twenty-five percent) of their shares owned by foreign citizens and/or foreign legal entities may only use Foreign Workers for positions as Experts or Consultants. (2) The provisions as referred to in paragraph (1) are exempted for Banks that meet the following criteria:
a. foreign citizens and/or foreign legal entities own less than 25% (twenty-five percent) of the bank, but foreign citizens and/or foreign legal entities are Controlling Shareholders (CSB) of the Bank; or b. there is an element of Control from foreign citizens and/or foreign legal entities over the Bank. (3) Banks that meet the exemption criteria as referred to in paragraph (2) may use Foreign Workers for positions as Board of Directors, Board of Commissioners, and/or Experts or Consultants.

Article 14
(1) Branch offices of banks located outside the country may only use Foreign Workers for positions:
a. branch office heads; and/or b. Experts or Consultants.
(2) Among the members of the Head of Branch Office of a Bank Located Outside the Country as referred to in paragraph (1) letter a, at least 1 (one) official must be an Indonesian citizen.

Article 15
Representative offices of banks located outside the country may only use Foreign Workers for positions:
a. Representative Office Heads; and/or b. Experts or Consultants.

Article 16
(1) The utilization of Foreign Workers for positions other than those permitted as referred to in Article 13, Article 14, and Article 15 may only be considered for specific cases with the approval of the Financial Services Authority. (2) The utilization of Foreign Workers as referred to in paragraph (1) is temporary with a duration of at most 1 (one) year. (3) In the event that an extension of the duration as referred to in paragraph (2) is required, the Bank must obtain prior approval from the Financial Services Authority.

CHAPTER III
KNOWLEDGE TRANSFER (TRANSFER OF KNOWLEDGE) OBLIGATIONS

Article 17
(1) Banks must ensure that knowledge transfer (transfer of knowledge) occurs in the utilization of Foreign Workers.
(2) The knowledge transfer (transfer of knowledge) obligation in the utilization of Foreign Workers as referred to in paragraph (1) applies to Banks that utilize Foreign Workers as Executive Officials and/or Experts or Consultants. (3) The knowledge transfer (transfer of knowledge) obligation as referred to in paragraph (1) is carried out through:
a. the designation of 2 (two) companion workers for 1 (one) Foreign Worker; b. work education and training for companion workers as referred to in letter a according to the job qualification held by the Foreign Worker; and
c. the implementation of training or instruction by Foreign Workers within a certain period, primarily to Bank employees, students, university students, and/or the general public.
(4) Further provisions regarding the implementation of training or instruction obligations by Foreign Workers as referred to in paragraph (3) letter c are established in a Financial Services Authority Circular Letter.

Article 18
Banks must report the results of the implementation of knowledge transfer (transfer of knowledge) obligations as referred to in Article 17 at the end of each year in the Bank's Business Plan Realization Report.

CHAPTER IV
REQUESTS FOR APPROVAL AND REPORTING ON THE UTILIZATION OF FOREIGN WORKERS BY BANKS

Article 19
(1) Requests for approval for the utilization of Foreign Workers as Board of Directors and/or Board of Commissioners are conducted by referring to provisions of legislation concerning bank management. (2) Requests for approval for the utilization of Foreign Workers as referred to in paragraph (1) are submitted to the Financial Services Authority before the Bank submits requests for permits to use Foreign Workers to the agency handling manpower affairs.

Article 20
(1) Requests for approval for the utilization of Foreign Workers as Executive Officials as referred to in Article 7 are submitted by Banks to the Financial Services Authority at the following addresses:
a. the Relevant Bank Supervision Department or Sharia Banking Department, for Banks with head offices or branch offices of banks located outside the country located in the Special Capital Region of Jakarta Province; or b. the Regional Office of the Financial Services Authority or the Local Financial Services Authority Office according to the area where the Bank's head office is located. (2) Requests for approval for the utilization of Foreign Workers as Executive Officials as referred to in paragraph (1) are submitted to the Financial Services Authority before the Bank submits requests for permits to use Foreign Workers to the agency handling manpower affairs. (3) To provide approval or rejection for the utilization of Foreign Workers as Executive Officials regarding the request as referred to in paragraph (2), the Financial Services Authority conducts:
a. research on the completeness and correctness of documents; and b. interviews with prospective Executive Officials if necessary.
(4) Approval or rejection for the utilization of Foreign Workers as Executive Officials is provided at most 30 (thirty) working days since the complete request documents are received. (5) The appointment of Foreign Workers as Executive Officials as referred to in paragraph (4) must be reported by Banks to the Financial Services Authority at most 10 (ten) working days after the effective appointment date, accompanied by supporting documents.

Article 21
Reporting on the utilization of Foreign Workers as Experts or Consultants as referred to in Article 10 is submitted to the Financial Services Authority at the following addresses:
a. the Relevant Bank Supervision Department or Sharia Banking Department, for Banks with head offices or branch offices of banks located outside the country located in the Special Capital Region of Jakarta Province; or b. the Regional Office of the Financial Services Authority or the Local Financial Services Authority Office according to the area where the Bank's head office is located.

Article 22
(1) Banks must submit reports on the realization of the utilization of Foreign Workers to the Financial Services Authority 1 (one) time in 1 (one) year.
(2) Reports on the realization of the utilization of Foreign Workers as referred to in paragraph (1) are included in the Bank's Business Plan Realization Report at the end of each year.

CHAPTER V
SANCTIONS

Article 23
(1) Banks that do not fulfill the provisions as referred to in Article 2 paragraph (2), Article 3, Article 4 paragraph (1), Article 4 paragraph (2), Article 5, Article 6, Article 7, Article 9 paragraph (2), Article 10 paragraph (1), Article 12 paragraph (3), Article 12 paragraph (4), Article 12 paragraph (5), Article 13 paragraph (1), Article 14 paragraph (1), Article 15, Article 16 paragraph (3), Article 17 paragraph (1), Article 18, and/or Article 22 paragraph (1) in this Financial Services Authority Regulation are subject to administrative sanctions as regulated in Article 52 of Law Number 7 of 1992 concerning Banking as amended by Law Number 10 of 1998 concerning Amendments to Law Number 7 of 1992 concerning Banking or Article 58 of Law Number 21 of 2008 concerning Sharia Banking. (2) Banks that do not submit reports within the time as referred to in Article 10 paragraph (2) and/or Article 20 paragraph (5) are subject to administrative sanctions in the form of fines of IDR 1,000,000.00 (one million rupiah) per day of delay per report, with a maximum fine of IDR 30,000,000.00 (thirty million rupiah) per report. (3) The imposition of administrative sanctions as referred to in paragraph (2) does not eliminate the Bank's obligation to submit reports.

CHAPTER VI
OTHER PROVISIONS

Article 24
All provisions of legislation concerning the Board of Directors, Board of Commissioners, and Executive Officials of Banks, insofar as they do not conflict with this Financial Services Authority Regulation, remain applicable to Foreign Workers.

CHAPTER VII
CLOSING PROVISIONS

Article 25
At the time this Financial Services Authority Regulation takes effect, Bank Indonesia Regulation Number 9/8/PBI/2007 concerning the Utilization of Foreign Workers and Knowledge Transfer Programs in the Banking Sector (State Gazette of the Republic of Indonesia Year 2007 Number 76, Supplement to the State Gazette of the Republic of Indonesia Number 4732) is repealed and declared invalid.

Article 26
This Financial Services Authority Regulation takes effect on the date of enactment.

This copy is consistent with the original.
Legal Director 1
Legal Department signed
Yuliana

For the information of everyone, 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 July 12, 2017 CHAIRMAN OF THE BOARD OF COMMISSIONERS FINANCIAL SERVICES AUTHORITY, signed MULIAMAN D. HADAD

Enacted 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 143

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 37 /POJK.03/2017
CONCERNING
THE UTILIZATION OF FOREIGN WORKERS AND
KNOWLEDGE TRANSFER PROGRAMS IN THE BANKING SECTOR

I. GENERAL
Indonesian banking is currently required to strengthen capital, inter alia, to increase competitiveness in facing the era of globalization. In strengthening capital structure, banks use foreign funding sources. The entry of foreign investment in turn can bring consequences of increasing the utilization of Foreign Workers in Bank operational activities. Meanwhile, increasingly intense competition also encourages Banks to always innovate in technology, products, and Bank services, which often require specific expertise that cannot yet be fully filled by Indonesian Workers. Therefore, in addition to filling the scarcity of Indonesian experts in certain fields, the utilization of Foreign Workers must encourage the creation of knowledge transfer (transfer of knowledge) to Indonesian Workers. For this reason, the utilization of Foreign Workers must be regulated further so that it can support efforts to create a healthy banking system that does not harm national interests.

II. ARTICLE BY ARTICLE

Article 1
It is clear enough.

Article 2
It is clear enough.

Article 3
Letter a
At branches of banks located abroad, those equivalent to the Board of Directors are the Branch Managers of Banks Located Abroad, while at representative offices of banks located abroad, it is the Head of the Representative Office.

Letter b
It is clear enough.

Letter c
Foreign Workers as Experts or Consultants do not hold structural positions in the Bank and do not have the authority to make operational decisions for the Bank.

Article 4
Paragraph (1)
It is clear enough.

Paragraph (2)
On principle, Foreign Workers can only hold positions in specific fields of duty detailed in a Circular Letter of the Financial Services Authority.
Approval from the Financial Services Authority is only granted by considering the needs and conditions of the Bank on a case-by-case basis and is temporary in nature. The field of duty referred to in this paragraph does not include the personnel field of duty and the compliance field of duty, as referred to in this Financial Services Authority Regulation.

Paragraph (3)
The issuance of recommendations for Foreign Workers to the agency handling labor affairs is one form of inter-agency coordination for the handling of Foreign Workers. Approval from the Financial Services Authority as referred to in this paragraph does not automatically cause the Foreign Worker to be able to hold a position in that field before there is a permit from the agency handling labor affairs.

Paragraph (4)
It is clear enough.

Article 5
It is clear enough.

Article 6
Paragraph (1)
It is clear enough.

Paragraph (2)
The procedure for compiling and submitting the plan for the utilization of Foreign Workers as referred to in this paragraph refers to the Financial Services Authority regulations governing the business plan of general banks.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Article 7
The application for approval of the utilization of Foreign Workers as Executive Officials is accompanied by documents consisting of:
a. 1 (one) passport photo from the last 1 (one) month with a size of 4x6 (four by six) cm; b. photocopy of passport;
c. curriculum vitae;
d. photocopy of a letter of work experience from the previous company and certificates of expertise, profession, education, or training; e. photocopy of the draft employment contract or assignment letter from the Bank; and f. example of signature and initial. The term "assignment letter" in letter e refers to a work assignment letter from the headquarters, branch of a bank located abroad, or representative office in the event of the utilization of Foreign Workers.

Article 8
Letter a
Assessment of competence and propriety is conducted in accordance with Financial Services Authority regulations governing the assessment of competence and propriety.

Letter b
It is clear enough.

Article 9
Paragraph (1)
Letter a
Fulfillment of this requirement is done, among other things, by submitting a letter of work experience and certificates of expertise, profession, education, and/or training.

Letter b
It is clear enough.

Letter c
Fulfillment of the requirement for adequate Indonesian language proficiency must be achieved within a maximum period of 1 (one) year after the person concerned assumes the position.

Paragraph (2)
Letter a
Fulfillment of this requirement can be done by submitting the Bank's organizational structure.

Letter b
For branches of banks located abroad, the term "Bank Headquarters" refers to the office that serves as the operational parent of the Bank in Indonesia.

Letter c
Fulfillment of this requirement is done by the Bank, among other things, by submitting an explanation of the Bank's considerations for using Foreign Workers and submitting evidence of efforts made by the Bank to find the required Indonesian Workers, before finally deciding to use Foreign Workers.

Letter d
It is clear enough.

Article 10
Paragraph (1)
The report on the appointment of Foreign Workers as Experts or Consultants is accompanied by documents consisting of:
a. 1 (one) passport photo from the last 1 (one) month with a size of 4x6 (four by six) cm; b. photocopy of passport;
c. curriculum vitae;
d. photocopy of employment contract; e. example of signature and initial; f. photocopy of proof or information regarding Expertise Qualifications; g. photocopy of Limited Stay Permit (KITAS) and Permit to Employ Foreign Workers (IMTA) issued by the competent agency; and h. letter of statement of no dual position.

Paragraph (2)
It is clear enough.

Article 11
Letter a
Fulfillment of the Expertise Qualification requirement is done, among other things, by submitting a letter of work experience and/or expertise certificates.

Letter b
It is clear enough.

Letter c
Fulfillment of this requirement is done by the Bank, among other things, by submitting an explanation of the Bank's considerations for using Foreign Workers and submitting evidence of efforts made by the Bank to find the required Indonesian Workers, before finally deciding to use Foreign Workers.

Letter d
It is clear enough.

Article 12
Paragraph (1)
The 25% (twenty-five percent) ownership of bank shares refers to shares recorded in the Financial Services Administration.
In the event that there is ownership of Bank shares by foreign citizens and/or foreign legal entities obtained through purchase on the stock exchange and not recorded in the Financial Services Administration, the foreign ownership in the said Bank cannot be recognized by the Financial Services Authority until the Financial Services Administration records are updated based on the report from the Bank.

Paragraph (2)
It is clear enough.

Paragraph (3)
The term "majority" refers to more than 50% (fifty percent).

Paragraph (4)
It is clear enough.

Paragraph (5)
The term "majority" refers to more than 50% (fifty percent).
Fulfillment of this requirement can be done by submitting a list of Executive Officials at the Bank's headquarters along with their composition.

Article 13
Paragraph (1)
It is clear enough.

Paragraph (2)
Foreign citizens and/or foreign legal entities declared by the Bank as Controlling Parties or who exercise Control must have been recognized by the Financial Services Authority and recorded in the Financial Services Administration.

Paragraph (3)
It is clear enough.

Article 14
It is clear enough.

Article 15
It is clear enough.

Article 16
Paragraph (1)
The term "specific cases" includes, among other things:
a. conditions where, if Foreign Workers are not used, the Bank will face significant loss risks; and b. existing Indonesian Workers are assessed as unable to meet the required expertise qualifications.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Article 17
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
Letter a
The mentoring of Foreign Workers focuses more on technology transfer and skill transfer so that the mentor has the necessary capabilities, so that at the appropriate time it is hoped that they can replace the mentored Foreign Workers.

Letter b
It is clear enough.

Letter c
It is clear enough.

Paragraph (4)
It is clear enough.

Article 18
It is clear enough.

Article 19
Paragraph (1)
The term "regulations regarding bank management" includes, among other things, regulations regarding:
a. general banks; b. sharia general banks;
c. conversion of conventional bank business activities to sharia banks;
d. requirements and procedures for opening branches, sub-branches, and representative offices of banks located abroad; e. assessment of competence and propriety; f. implementation of governance for general banks; and/or g. implementation of good corporate governance for sharia general banks and sharia business units.

Paragraph (2)
It is clear enough.

Article 20
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
Supporting documents consist of:
a. photocopy of employment contract; b. photocopy of Limited Stay Permit (KITAS) issued by the competent agency; and
c. photocopy of Permit to Employ Foreign Workers (IMTA) issued by the competent agency.

Article 21
It is clear enough.

Article 22
It is clear enough.

Article 23
It is clear enough.

Article 24
Regulations regarding the Board of Directors, Board of Commissioners, and Executive Officials of Banks are guided by, among other things, regulations regarding:
a. general banks; b. sharia general banks;
c. conversion of conventional bank business activities to sharia banks;
d. requirements and procedures for opening branches, sub-branches, and representative offices of banks located abroad; e. assessment of competence and propriety; f. implementation of governance for general banks; and/or g. implementation of good corporate governance for sharia general banks and sharia business units.

Article 25
It is clear enough.

Article 26
It is clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6086