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Opening a bank account in Indonesia

Posted 7.05. 2014 by Nurmia Agustina / Last update on 6.03. 2017

Opening a bank account in Indonesia Review by Michal Wasserbauer on 7. 5. 2014 Company Registration in Indonesia, Market Research in Indonesia, Work Permit in Indonesia, Product Registration in Indonesia, Local Partner Selection in Indonesia, Trade Mission in Indonesia, Company Formation in Indonesia, Company Establishment in Indonesia, Company Set Up in Indonesia, Payroll Outsourcing in Indonesia, Tax Reporting in Indonesia, Medical Product Registration in Indonesia, Medical Device Registration in Indonesia, Cosmetic Registration in Indonesia, Food Supplement Registration in Indonesia.
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For companies or foreign investors who want to invest in Indonesia, one of the things that should be well understood is the process of opening a bank account and what type of account will be used for business transactions.

In Indonesia three types of accounts are commonly used, namely checking accounts, savings accounts and deposit account. Numerous banks in Indonesia offer both rupiah and foreign currency savings accounts (commonly US$), checking accounts, deposit accounts as well as credit and debit card accounts.

Generally, foreign banks have requirements to open a personal bank account, such as letters of reference from an employer or sponsor, copies of your passport and temporary stay permit (KIMS, KITAS card) or permanent resident license (KITAP). For checking accounts, number of other documents may be required, such as a reference from a previous bank, your company’s Tax Registration Number, and a letter issued by a company verifying that Indonesian income tax is paid. Most banks also require you to maintain a minimum deposit for a personal account in US dollars. However, are some companies run a system whereby you can write a personal check from your home account and the cash  will be issued by the company in Rupiah.

Companies in Indonesia which have a foreign shareholder are required to maintain a bank account. The account must be established with a bank which is licensed to handle foreign currencies ( known as Foreign-Exchange Bank or Bank Devisa). Indonesian law requires every bank to conduct certain “know your customer” procedures. In practice, banks may apply different requirements; however they are required to at least have the following information on their customers:

  • For a natural person:
  1.  Copy of identity card or passport
  2. For foreigners, copy of staying permit in Indonesia/temporary resident permit
  • For a corporate entity:
  1. Memorandum and/or Articles of Association;
  2. Business licenses (for Indonesian companies)
  3. Taxpayer identification number (for Indonesian companies).

There are no specific restrictions on the use of a bank account by its holder, with the exception of its use for money laundering, terrorism funding.

Here are the advantages of each type of bank account:

Checking account

  • Ability to make a payment using a check or giro (demand deposit)
  • Ability to delay payment by check retroactively

 

Savings account

  • Can be used as a tool for transfers and debits
  • Can be for ATM access
  • Is a tool for amassing assets

 

Deposit account

  • Interest on deposits is higher than a savings accoun,
  • Deposits are withdrawn in accordance with the agreement with the bank customer
  • Can be transferable (certificates of deposit )

The company must choose the type of account it would like use. From a business perspective, using a checking account is easier because there will be a statement from the bank that can be used to track financial transactions. In addition, checking accounts can be set up for automatic payments so that demand deposits or giro can be withdrawn on a certain date and facilitate cash management for the company.

How to open bank account :

The regulation of Central Bank of Indonesia requires that all banking transaction (such as capital injection, administration of loans, payment of capital equipment, raw material, etc) of a newly established Foreign Investment Company be transacted through a special foreign investment bank account in Indonesia. The required documents as follows:

  1. BKPM Initial Investment Approval, Deed of establishment, domicile letter, tax number
  2. The power of attorney to the person who is given the authority to open bank account
  3. Copy ID/passport of the authorized person to open bank account
  4. Photo of the authorized person to open bank account
  5. Minimum deposit is Rupiah 1 million or USD 1.000

 

Timeline: Approximately 5 (five) days.

 

Note: There is possibility that each bank has additional requirements.

 

However, each bank has its own requirements for foreigners to open an account. Generally they require the following:

  • Initial deposit :IDR Rp. 1.000.000, USD 1.000, SGD 2.500, EUR 1.000, AUD 2.000, GBP 1.000, JPY 150.000, HKD 10.000, CHF 2.000
  • Individual Account Opening:
    • 21 years older or married
    • Completed and signed application form along with supporting details
    • Copies of an identity card (ID/Passport and KIMS/Permit)
    • 4 × 6 photograph
  • Company Account Opening :
    • Completed and signed application form along with supporting documents
    • Copies of identity card (ID/Passport and KIMS/Permit of authorized officer)
    • NPWP (tax registration number, TDP (company registration), Business License, and the Certificate of Incorporation)
  • Opening bank account for Representative Office in Indonesia:
    • Since representative office only allow to do marketing and promotion activities, you will not allow to generate revenue in Indonesia, thus, the revenue should go directly to head office. But you can open bank account for representative office for financial importance which required document such as :
    1. Copy of Company Registration (TDP)
    2. Business License
    3. Copy of tax number (NPWP)

 

Actually, opening a bank account does not take a long time and can be done in a day together with the debit card (ATM) application. Generally, some banks require a minimum deposit to open an account. For credit card applications, similar documents will be required.



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2 Responses to “Opening a bank account in Indonesia”

  1. Harbhajan Singh says:

    Dear Sir,
    I am very much interested to open a saving account and eventually transfer my fund into fixed Deposit investment for long term. I am a Malaysian and would like to enquire, would it be possible to open an account with my valid passport only. That is, without having to have a residence permit.

    Regards
    Harbhajan

  2. Dear Harbhajan,

    to open a personal bank account in Indonesia you have to full fill several requirements, such as letters of reference from an employer or sponsor, copies of your passport and temporary stay permit (KIMS, KITAS card) or permanent resident license (KITAP).

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