BANK INDONESIA REGULATION NUMBER: 5/ 14 /PBI/2003 CONCERNING

Transcription

1 BANK INDONESIA REGULATION NUMBER: 5/ 14 /PBI/2003 CONCERNING THE REQUIREMENT FOR PROVISION OF EDUCATION AND TRAINING FUNDS FOR HUMAN RESOURCES DEVELOPMENT AT RURAL BANKS THE GOVERNOR OF BANK INDONESIA, Considering : a. whereas to build performance and develop a sound Rural Bank Industry, it is necessary to have professional human r e s o u r c e s ; b. whereas to develop professional human resources, Rural Banks are required to improve the knowledge, capacity, and skills of their human resources through sustained education and training; c. whereas to implement the education and training of Rural Bank human resources, it is necessary to have funds and proper preparations within a planned framework; d. n o w t h e r e f o r e i t i s d e e m e d n e c e s s a r y t o s t i p u l a t e provisions concerning the requirement for provision of education and training funds for human resources development at Rural Banks in a Bank Indonesia Regulation; In view

2 - 2 - In view of : 1. Act Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Number 31 of 1992, Supplement to the State Gazette Number 3472), as amended by Act Number 10 of 1998 (State Gazette of the Republic of Indonesia Number 182 of 1998, Supplement to the State Gazette Number 3790); 2. Act Number 23 of 1999 concerning Bank Indonesia (State Gazette of the Republic of Indonesia Number 66 of 1999, Supplement to the State Gazette Number 3843); HAS DECREED: T o e n a c t : THE BANK INDONESIA REGULATION CONCERNING THE REQUIREMENT FOR PROVISION OF EDUCATION AND TRAINING FUNDS FOR HUMAN RESOURCES DEVE LOPMENT AT RURAL BANKS. A r t i c l e 1 The terminology used in this Bank Indonesia Regulation has the following meanings: 1. Rural Bank is a Rural Bank as defined in Act Number 7 of 1992 concerning Banking as amended by Act Number 10 of 1998, conducting conventional business operations and business operations based on Sharia Principles; 2. Human Resources are: a. m e m b e r s o f t h e b o a r d o f d i r e c t o r s a n d b o a r d o f c o m m i s s i o n e r s o f a Rural Bank; b. s h a r i a

3 - 3 - b. sharia supervisory board; and c. employees of a Rural Bank. 3. Board of Direc tors: a. for a Rural Bank legally incorporated as a Limited Liability Company, is the Board of Directors as referred to in Article 1 number 4 of Act Number 1 of 1995 concerning Limited Liability Companies; b. for a Rural Bank legally incorporated as a Regi onal Government E n t e r p r i s e, i s t h e B o a r d o f D i r e c t o r s a s r e f e r r e d t o i n A r t i c l e 1 1 o f A c t Number 5 of 1962 concerning Regional Government Enterprises; c. for a Rural Bank legally incorporated as a Cooperative, is the management as referred to in Article 29 of Act Number 25 of 1992 concerning Cooperatives; 4. Board of Commissioners: a. for a Rural Bank legally incorporated as a Limited Liability Company, is the board of commissioners as referred to in Article 1 number 5 of Act Number 1 of 1995 concerning Limite d Liability Companies; b. for a Rural Bank legally incorporated as a Regional Government Enterprise, is the supervisory board as referred to in Article 19 of Act Number 5 of 1962 concerning Regional Government Enterprises; c. for a Rural Bank legally incorporated as a Cooperative, is the supervisory board as referred to in Article 38 of Act Number 25 of 1992 concerning Cooperatives; 5. Sharia Supervisory Board is a board whose members are recommended by t h e N a t i o n a l S h a r i a C o u n c i l a n d i n s t a l l e d a t a R u r a l B a n k conducting business operations based on sharia principles, having powers and functions as stipulated by the National Sharia Council; 6. Education and Training Funds are funds provided by a Rural Bank for Human Resources development through improvement of banking knowledge

4 - 4 - knowledge and skills, including but not limited to operations, marketing, and management of Rural Banks. A r t i c l e 2 (1) Rural Banks are required to provide Education and Training Funds. (2) Education and Training Funds as referred to in paragraph (1) are stipulated at no less than 5% (five percent) of actual expense incurred for Human Resources throughout the previous year. A r t i c l e 3 (1) Compliance with the requirement for provision of Education and Training Funds as referred to in Article 2 paragraph (2) shall be phased in as f o l l o w s : a. not less than 3% (three percent) throughout 2004; b. not less than 5% (five percent) throughout 2005 onwards. (2) In the event a Rural Bank has complied with the requirement for provision of Education and Training Funds as referred to in paragraph (1), but the provision is insufficient to assign Human Resources to participate in e d u c a t i o n a n d t r a i n i n g, t h e R u r a l B a n k i s r e q u i r e d t o i n c r e a s e t h e Education and Training Funds so that it will be able to assign no less than 1 (one) person to participate in education and training. A r t i c l e 4 (1) Education and training financed by Education and Training Funds as referred to in Article 2 may be implemented by the following means: a. organized by the Rural Bank itself; b. part icipate in education and training provided by another Rural Bank; c. work

5 - 5 - c. work together to organize education with another Rural Bank; or d. assign Human Resources to participate in education and training provided by a banking educational institution. (2) I m p l ementation of education and training as referred to in paragraph (1) must be performed by parties with competence/knowledge in banking, e i t h e r i n s i d e o r o u t s i d e t h e R u r a l B a n k. (3) Implementation of education and training as referred to in paragraph (1) s h a ll be performed by instructors with experience in banking and/or other a r e a s o f f i n a n c e. A r t i c l e 5 (1) The Board of Directors shall formulate an annual education and training p l a n t h a t t a k e s i n t o a c c o u n t t h e p r i n c i p l e s o f p r i o r i t y a n d o f e q u a l distribution of knowledge and skills possessed by Human Resources. (2) The education and training plan referred to in paragraph (1) shall be approved by the board of commissioners or supervisory board of the Rural B a n k. (3) The education and training plan referred to in paragraph (1) shall be reported to Bank Indonesia in the Annual Work Plan report. A r t i c l e 6 Any Rural Bank that has not fully used the Education and Training Funds as referred to in Article 3 paragraph (2) by the end of the current year shall be requi red to put back any unrealized balance of Education and Training Funds into the funds for the following year. A r t i c l e 7

6 - 6 - A r t i c l e 7 Realization of the Education and Training plan as referred to in Article 5 paragraph (1) shall be reported to Bank Indonesia in the work plan implementation report by the Board of Commissioners. A r t i c l e 8 The reports referred to in Article 5 paragraph (3) and Article 7 shall be s u b m i t t e d t o B a n k I n d o n e s i a a s f o l l o w s : a. Directorate of Rural Bank Supervision at the address of Jl. M.H. Thamrin No. 2, Jakarta 10010, for a conventional Rural Bank in the working area of the Bank Indonesia Head Office; b. Sharia Banking Bureau at the address of Jl. M.H. Thamrin No. 2, Jakarta 10010, for a sharia Rural Bank in the working area of the Bank Indone s i a H e a d O f f i c e ; o r c. Bank Indonesia Regional Office for Rural Banks outside the working area o f t h e B a n k I n d o n e s i a H e a d O f f i c e a s r e f e r r e d t o i n l e t t e r a a n d l e t t e r b. A r t i c l e 9 Any violation of the provisions stipulated in Article 2, Article 3, Articl e 4 paragraph (2), Article 5 paragraph (1) and paragraph (2), and Article 6 shall be subject to administrative sanctions in the form of written warning as referred to in article 52 of Act Number 7 of 1992 concerning Banking as amended by Act Number 10 of Article 10

7 - 7 - A r t i c l e 1 0 This Bank Indonesia Regulation shall come into force on January 1, E n a c t e d i n J a k a r t a Dated: July 23, 2003 THE GOVERNOR OF BANK INDONESIA (signed) BURHANUDDIN ABDULLAH STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 90 OF 2003 DPBPR/BPS

8 ELUCIDATION TO BANK INDONESIA REGULATION NUMBER: 5/ 14 /PBI/2003 CONCERNING THE REQUIREMENT FOR PROVISION OF EDUCATION AND TRAINING FUNDS FOR HUMAN RESOURCES DEVELOPMENT AT RURAL BANKS GENERAL REVIEW Human Resources play a vital role in improving the pe r f o r m a n c e and the development of the Rural Bank industry, and therefore need to be organized properly within a planned framework of sustained education and training. The development of banking Human Resources into professionals through sustained educati on and training requires considerable time and e x p e n s e, a n d t h e r e f o r e e a c h b a n k i s r e q u i r e d t o p r o v i d e f u n d s f o r t h i s purpose. ARTICLE BY ARTICLE A r t i c l e 1 A r t i c l e 2

9 - 2 - A r t i c l e 2 Paragraph (1) Education and Training Funds are to cover the expenses o f : a. Organization and operation; b. Honorarium of instructors; c. Pocket money; d. Transportation and accommodation; e. E d u c a t i o n a l m a t e r i a l s, o f f i c e s u p p l i e s, p h o t o c o p y ; a n d f. Other normal expenses incurred to support the i m p l e m e n t a t i o n o f e d u c a t i o n a n d training. Paragraph (2) Expenses incurred for Human Resources are expenses incurred f o r p e r s o n n e l s u c h a s : a. s a l a r i e s, r e m u n e r a t i o n, a n d a l l o w a n c e s p a i d t o t h e b o a r d o f directors/executive management and employees of the R u r a l B a n k, w h e t h e r p e r m a n e n t o r non-permanent, prior to deduction for income tax and other deductions; and b. honorarium of the board of commissioners/supervisory board/sharia supervisory board. A r t i c l e 3 Paragraph (1) Compliance with provision of Education and Training Funds s h a l l b e c a lculated based on actual expense incurred for education and training during the current year. F o r e x a m p l e : a. t h e e x p e n s e

10 - 3 - a. expense incurred for Human Resources in 2003 is Rp 100,000,000 (one hundred million rupiahs); b. the Rural Bank is required to provide education and training funds in 2004 in the amount of Rp 3,000,000 (three million rupiahs); c. The actual expense incurred for education and training in 2004 is Rp 2,700,000 (two million seven hundred thousand rupiahs), t h e r e f o r e the Rural Bank is required to put back the shortfall in actual expense, amounting to Rp 300,000 (three hundred thousand rupiahs), for provision of education and training funds in the year of Paragraph (2) A r t i c l e 4 Paragraph (1) Paragraph (2) Self -e xplanatory. Paragraph (3) Instructors possessing experience in banking and/or other area of finance is indicated, among others, by relevant education background and relevant working experience. A r t i c l e 5

11 - 4 - A r t i c l e 5 Paragraph (1) Paragraph (2) Paragraph (3) The annual work plan report is as referred to in Decree of the Management of Bank Indonesia Number 31/60/KEP/DIR dated July 9, 1998, concerning Work Plan and Work Plan Implementation Report for Rural Banks and amendments there to. A r t i c l e 6 A r t i c l e 7 The work plan implementation report by the Board of C o m m i s s i o n e r s i s a s r e f e r r e d t o i n D e c r e e o f t h e M a n a g e m e n t o f Bank Indonesia Number 31/60/KEP/DIR dated July 9, 1998, concerning Work Plan and Work Plan Impleme n t a t i o n R e p o r t f o r Rural Banks and amendments thereto. A r t i c l e 8 A r t i c l e 9 A r t i c l e 1 0

12 - 5 - Article 10 SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 4308 DPBPR/BPS