Bank Indonesia Regulation - Utilization of Foreign Workers and Knowledge Transfer

Bank Indonesia (BI) has recently confirmed Regulation No. 9 of 2007 (Peraturan BI No. 9/8/PBI/2007) on the Exploitation of Foreign Workers and Transfer of Knowledge in the Banking Sector. The Regulation clearly highlights that with the increasing involvement of foreign investors in the local banking community there will be an equivalent increase in the amount of foreign workers employed by banks in Indonesia. The question that arises is how to best exploit this expert knowledge to the advantage of the banks themselves and the direct counterparts to the foreign employee.

The need and the ability to ensure knowledge and skills transfer will mitigate any “threats” that the local banking community perceives from the increasing foreign investment in the local banking sector. It is expected that ultimately much of the need for foreign employees can be removed as there will be equally skilled, knowledgeable and qualified Indonesians able to fill the positions that may initially be filled by foreigners.