How to Open a Local and Foreign Currency Bank Account in Indonesia?

How to Open a Local and Foreign Currency Bank Account in Indonesia?

  • InCorp Editorial Team
  • 2 November 2023
  • 3 reading time

Whether you’re a foreigner who wants to live and do business here or someone who travels frequently in the country for conferences, opening a bank account Indonesia or savings account Indonesia is helpful and, sometimes, a necessity.

A long time ago, having a foreigner open bank account in Indonesia is complicated due to a long list of requirements. For instance, it is mandatory to submit either KITAS (temporary stay permit) or KITAP (permanent stay permit). These are non-essentials for those who have only business visas.

Easing of Restrictions

Fortunately, the Financial Services Authority (OJK) issued a circular on 15 September 2015, easing some of the stringent conditions and requirements on opening domestic bank accounts. Its goals are to invite more foreigners to open bank account Indonesia, stabilize the value of rupiah, and reduce the country’s local currency’s volatility against the dollar.

Based on the new OJK circular (S-246/S.01/2015), you can now open a bank account with a value of no more than $50,000 with the following requirements:

  • Initial deposit of $2,000
  • Passport

In case the bank asks for proof of residency, you can submit a citizenship identity card, driver’s license, student card, employment card, or health insurance card.

For Those with $50,000 and Above

To curb terror funding, corruption, and other big crimes, Indonesia has strict rules and regulations against money laundering. For this reason, banks would normally ask you to present more documents once your offshore company bank account Indonesia contains $50,000 and above:

  • Passport
  • Any of the following documents (residency permits, reference letter from the bank from your country of origin, domicile letter, lease agreement copy, identity card of the spouse living in Indonesia, or copy of the credit or debit card)
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Requirements for Corporations and Investment Companies

Due to the nature of the business and the amount of money that flows through the account, there are additional requirements for corporations and investment companies that want to open bank account Indonesia.

Under the rules of Central Bank of Indonesia, investment companies should provide:

  • Initial investment approval from the BKPM
  • Domicile letter
  • Tax number (as more likely you will open a checking account)
  • Copy of the passport of the person who will own the account
  • Power of attorney if another person is authorized to open the account

If the owner of the bank account is a corporation, the bank may require:

Opening a Bank Account Indonesia with InCorp

Despite the easing of restrictions, open bank account Indonesia for foreigners can still be daunting and confusing. Our company is here to assist you so you can have it as quickly as possible. We can help you with:

We have a knowledgeable team of specialists who can guide you through the entire process. Also, you can already begin working on your requirements even if you’re still in the country of your origin.

If you pick any of our virtual offices, shared offices, and service office packages, you will also receive a domicile letter plus FREE consultation on business registration.

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Get in touch with us.

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Frequent Asked Questions

The sponsor must be a company for single and multiple-entry businesses and working visas. The sponsor company is the legal entity that invites you to a business meeting or the business you will be working for. Regarding visit and retirement visas and KITAS & KITAP stay permits, the sponsor must either be an Indonesian legal entity or a citizen. If you need a visa sponsor, InCorp provides sponsorship via HR Outsourcing and manages payroll for your foreign employee.

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

Yes, this mainly applies to import and export businesses. Instead of establishing a company, you can use an under-name import service, an importer of record.