Opening a bank account in Indonesia: An overview

Indonesia is home to various foreign banks with branches. Some of these institutions even provide you with banking options that are specially made for performing secure, speedy transfers between various accounts and for carrying out smooth conversions between various currencies. These are more practical solutions, especially for expatriates. Furthermore, they frequently provide 24-hour online banking and customer assistance, which might make life easier when travelling overseas.

So Having a bank account can be quite convenient if you want to travel or work in Indonesia frequently. You can also avoid other expenses, such as those associated with using an international ATM. Because there are few places where you can use your debit or credit card, cash is frequently your only choice, so you might need to visit an ATM frequently. Having a local business bank account can make managing your foreign transactions easier if you conduct a company in Indonesia.

Points to remember while opening a bank account in Indonesia

The following considerations must be taken into account before making a decision if you intend to open a bank account in Indonesia

Availability of the internet banking
Ease of making transactions
Minimum deposit requirements
Monthly fees
Services and facilities provided
The bank’s reputation
Types of currencies you will be transacting in

Types of accounts available

In Indonesia, there are three prevalent types of bank accounts, which are as follows

Checking account, into which payments may be made by demand deposit (GIRO) or by check;
Savings account - The most commonly utilised account that permits real-time transfers;
Deposit account - Offers greater interest rates, and withdrawals are only permitted in accordance with an arrangement with the bank.

The majority of Indonesian banks provide savings accounts for rupiah as well as other currencies such the US dollar, Singapore dollar, Japanese yen, euro, Hong Kong dollar, Swiss franc, and Australian dollar. The US Dollar is the most popular foreign currency utilised by enterprises in Indonesia.

Advantages of opening bank account in Indonesia?

In Indonesia, having a local bank account has many advantages. Here are a few of the most typical ones

Performing transactions for local- businesses: Having local bank accounts will streamline transactions if you collaborate or engage with locals, such as staff, suppliers, or business partners. For daily transactions, including monthly payments, personal and business uses, business transactions, and financial app apps, many Indonesians use local banks.

Making use of e-wallet services: Restaurants, online shops, supermarkets, travel agencies, and a wide range of other companies use Indonesia's numerous e-wallet systems. It can be more convenient to have e-wallet accounts, but you should also have local bank accounts so you can top off the credits.

Financing public services: In order to live, work, or conduct business in Indonesia, you must interact with the government. Many institutions, including notaries, attorneys, courier services, and others, demand transactions or payments made using local bank accounts.

Making deposit payments: Want to purchase a home or car in Indonesia? Verify that you have the resources necessary to pay deposits. It is simple for you to do so if you have a local bank account.

Having a local bank account also simplifies day-to-day activities in Indonesia. Like the inhabitants, you can order food, make purchases, go shopping, and pay for services and goods. The Indonesian mobile banking system provides a wide range of features and practical services, and all transactions are made in Rupiah, the native currency.

Let us look at some of the advantages that come with the aforementioned account categories.

Under checking account in Indonesia

It gives an option to pay either with a cheque or giro (demand deposit);
Also, gives you the ability to retroactively postpone cheque payments.

Under the savings, the account in Indonesia

It has several uses, including: access to ATMs, transfers, debits, and asset accumulation.

Under deposit account in Indonesia

Interest on deposits is higher than on savings accounts
Under this, the deposits are withdrawn under the agreement with the bank customer
It gives you an option to transfer the account. (certificates of deposit)

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Procedure for Opening a corporate bank account in Indonesia

Here is a step by step procedure of opening a corporate account in Indonesia

Send the bank the necessary Paper works for inspection.
The bank will provide the Board Resolution naming the authorised person as the one who can open, run, maintain, designate account signatories, and shut the bank account. After getting it signed, we should email it back to the bank for their evaluation.
The bank will send the company the account opening form to complete.
After you're done, scan it and email it to the bank for evaluation.
If everything is in order, the Board Resolution and Account Opening Form must be sent to the Bank in original, signed form for their records.
Each account requires a minimum initial investment of 100 million rupiah ($6,929).
The Company may open as many accounts in as many different currencies as are necessary, but each account must include the minimum required deposit.
The account will be automatically cancelled after six months if there are no transactions.

Obtain online banking if necessary.

The bank will provide a Board Resolution, which is a necessary paper that identifies the appointment of the Authorised Person to open, run, manage, and cancel the bank account after receiving all the aforementioned necessary papers.

The applicant must sign this paper before returning it to the bank for examination. For each account, the minimum initial deposit varies per bank and can be anywhere from 1 million rupiah ($68) to 10 million (US$684). The business may maintain as many accounts as necessary, in as many different currencies as are necessary, but each account must contain the minimum required deposit.

The procedure won't take more than one working day if all the paperwork is in place. The account will automatically become inactive after six months if there are no transactions.

Necessary papers needed for opening a bank account in Indonesia

Company

The following paperwork is required if a business wants to open a bank account in Indonesia

A copy of the deed of the company
A decree of Ministry of Law and Human Rights;
Business identification number
Details of your tax card
BKPM approval

Shareholders

Individual

In case of individual shareholder is opening a bank account in Indonesia, then you will be needing the following necessary papers

A copy of your passport
A copy of proof of address.

Entity

In case of entity is opening a bank account in Indonesia, then you will be needing the following necessary papers

Certificate of incorporation
Copy of Memorandum of Association (MOA) and Article of Association (AOA)
Latest profile/company extract (this should include the structure of the company, shareholders, director, address, etc.)
Details regarding your company structure (this should indicate the ultimate beneficial owner/individual ownership of the company)
Copy of passport of each individual shareholder.
Copies of identity card (ID/Passport and KIMS/Permit of authorized officer)

Director

In case of director is opening a bank account in Indonesia, then you will be needing the following necessary papers

Copy of passport of all directors and the signature page on the passport to validate their signature on the resolution;
All the details of the director, which should include – email address, contact details, address.

Individual Account Opening

In case of entity is opening a bank account in Indonesia, then you will be needing the following necessary papers

The applicant has to be 21 years older or more (either married or unmarried)
Applicant has to fill-out the applicant form and submit the form along with supporting necessary papers
4 × 6 photograph of yourself
A copy of applicant’s valid passport
A temporary resident permit [KITAS – It is short for KartuIzinTinggalTerbatas(Limited Residency Permit Card). It allows foreigners to stay in Indonesia legally but in a limited time.]. For example, a work permit KITAS, a KITAS sponsored by an Indonesian spouse, a retirement or dependent KITAS
Applicant’s proof of address in Indonesia
Your contact details
A domicile letter
A recommendation letter from your employer and the details of your employer’s NPWP (tax identification number)
Applicant’s NPWP (tax identification number)
An existing debit or credit card, and a bank necessary paper from your home bank.

Opening a bank account in Indonesia for the representative office

You cannot make money in Indonesia since the representative office only allows marketing and promotion operations. As a result, the money should be sent to the corporate headquarters. But with the following necessary papers, you can create a bank account for the representative office for financial purposes

Copy of Company Registration (TDP)
Business License
Copy of tax number (NPWP)

With the use of the debit card (ATM) application, opening a bank account in Indonesia is quick and may be completed in a single day. Typically, opening an account with various institutions requires a minimum deposit. Similar Paper works will be needed for credit card applications. Perhaps your situation is different. To learn more, get in touch with us right away.