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Exa: keuangan.kontan.co.id
Exa: keuangan.kontan.co.id
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Chat with Bali Zero on WhatsAppIndonesia's Financial Services Authority, known by its Indonesian acronym OJK (Otoritas Jasa Keuangan), has moved to restrict the employment of foreig
Indonesia's Financial Services Authority, known by its Indonesian acronym OJK (Otoritas Jasa Keuangan), has moved to restrict the employment of foreign workers (Tenaga Kerja Asing, or TKA) within the domestic banking sector. The new framework sets limits on the roles and proportions of foreign nationals that banking institutions operating in Indonesia may employ, reflecting a broader national policy of prioritising Indonesian talent in strategic financial sector positions.
The regulation forms part of OJK's ongoing effort to strengthen domestic human capital development in the financial industry while maintaining the sector's competitiveness. Indonesian banking law has long included provisions that favour local workers, particularly in customer-facing and management roles, but the latest regulatory move signals a more structured enforcement posture.
Amar Bank, a digital-focused Indonesian bank, has publicly responded to the new OJK directive. While the specific content of Amar Bank's response was not detailed in the available source material, the institution's public statement indicates awareness of and engagement with the regulatory change. Amar Bank, which has historically attracted foreign investment and maintained international partnerships, is among the institutions that would need to audit its workforce composition in light of the new rules.
The restriction on foreign workers in banking is consistent with Indonesia's RPTKA (Rencana Penggunaan Tenaga Kerja Asing) framework, which requires companies to submit workforce utilisation plans before hiring foreign nationals. Banks and financial institutions are already among the more tightly regulated sectors when it comes to TKA permits, requiring approval not only from the Ministry of Manpower but also from the relevant sector regulator — in this case, OJK.
The move also aligns with Indonesia's broader economic nationalism agenda, which has accelerated under recent administrations. Strategic sectors including finance, telecommunications, and natural resources have seen increasing scrutiny of foreign participation at the operational and managerial level, even as Indonesia continues to welcome foreign direct investment in principle.
This OJK directive matters to our clients for reasons that go beyond banking employment. It signals that Indonesia's sectoral regulators are becoming more assertive about enforcing localisation requir
ements — and that pattern is worth watching across all industries where foreigners operate businesses or hold executive roles.
For clients who are investors in or directors of Indonesian financial en
tities, this is a direct compliance trigger. But for the broader business community, the Amar Bank response is instructive: proactive engagement with regulators and a clear localisation roadmap are increasingly the price of doing business in Indonesia's regulated sectors.
Foreign entrepreneurs in Bali who employ foreign staff — particularly in management roles — should treat this as a reminder to review their own TKA compliance. OJK may be the headline today, but similar scrutiny applies across sectors. A well-structured PT PMA with compliant staffing ratios is not just good governance; it is increasingly a prerequisite for operating without friction.
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