How to Open a Bank Account in Indonesia as a Foreigner

For companies or foreign investors who want to invest in Indonesia, one of the things to understand is the process of opening a bank account. Before you start opening a bank account in Jakarta and other cities in Indonesia you must understand the type of account for business transactions.

Understanding Bank Account Types in Indonesia

In Indonesia, there are three bank accounts to consider. There are checking, savings, and deposit accounts. In addition, numerous banks in Jakarta and other cities in Indonesia offer Rupiah and foreign currency savings accounts (commonly USD), checking accounts, deposit accounts, and credit and debit card accounts.

Generally, banks in Indonesia have requirements for foreigners to open a personal account. They include a reference letter from an employer or sponsor, copies of your passport and temporary stay permit (KIMS, KITAS card), or permanent resident license (KITAP).

For checking accounts, it may require other documents. They include a reference from the previous bank, the company’s Tax Registration Number, and a letter from 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, some companies run a system whereby you can write a personal check from your home account, and the company issues the cash in Rupiah.

Companies in Indonesia that have foreign shareholders must maintain a bank account. Set it up with a bank license to handle foreign currencies (Foreign Exchange Bank or Bank Devisa).

Can Foreigners Open a Bank Account in Indonesia?

Yes, foreigners can open a bank account in Indonesia. Even the Indonesian government has provided a more convenient option for foreigners, as they now only need a passport to open a bank account in Indonesia.

However, there are common Indonesia bank account requirements and limitations involved depending on the bank when opening a bank account for foreigners:

• Have a passport
• Have a KITAS or KITAP
• Proof of address
• Initial deposit ranging from IDR 1 million and above
• Some banks may also accept other documents, such as a long-term visa, sponsorship letter, or Tax Identification Number (NPWP).

Information You Should Provide to Create Indonesian Bank Account

Indonesian law requires every bank to conduct sure “know your customer” procedures. In practice, banks may apply different requirements. First, however, they need at least the following information about their customers:

For personal matters:

1. Copy of identity card or passport;
2. For foreigners, a copy of the staying permit in Indonesia/temporary resident permit.

For a corporate entity:

1. Memorandum and/or Articles of Association;
2. Business licenses (for Indonesian companies); and
3. Taxpayer identification number (for Indonesian companies).

There are no specific restrictions on the use of a bank account in Indonesia by its holder, except for its use for money laundering and terrorism funding.

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 the payment by check retroactively

Savings account

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

Deposit account

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

The company can choose the type of bank account in Jakarta and Indonesia that best suits its needs. From a business perspective, using a checking account is more manageable. There will be a statement from the bank to track financial transactions.

In addition, you can set up a checking account for automatic payments to withdraw deposits or giro on a specific date and facilitate cash management for the company.

Which Indonesian Bank is Best for Foreigners?

The banking industry in Indonesia has grown over the years, there are numerous bank companies in Indonesia, and here are the top three banks in Indonesia that could be considered:

1. Bank Central Asia 

Bank BCA is one of the most commonly used banks in Indonesia. Operating with 135 branches and over 850 sub-branches all over Indonesia and well-known for its high-quality services and banking products. 

2. Bank Mandiri

Bank Mandiri is also one of the most commonly used banks in Indonesia. Bank Mandiri is a state-owned bank with the second-highest assets in the banking industry which means that Bank Mandiri is considered to have certainty for its customers. 

3. Bank Negara Indonesia (BNI)

Bank BNI is also a state-owned bank in Indonesia, operating not only within the country but also in several Asian countries, as well as the US and UK.

How to Open a Bank Account in Indonesia

The regulation of the Central Bank of Indonesia requires that all banking transactions (such as capital injection, administration of loans, payment of capital equipment, and raw material) of a newly established foreign investment company be transacted through a particular foreign investment bank account in Indonesia.

Required Documents to Open a Bank Account in Indonesia

Submit the following documents:

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

Timeline: Approximately 5 (five) days.

However, each bank has 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, Business License, and the Certificate of Incorporation)

Opening a bank account for Representative Office in Indonesia

Since the representative office only allows marketing and promotion activities, you cannot generate revenue in Indonesia. Thus, the income should go directly to the head office. But you can open a bank account for the representative office for financial importance with the following documents:

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

Steps to Open a Bank Account in Indonesia

Opening a bank account in Indonesia can be conducted at the nearest bank office, here are the steps you need to follow:

1. Choose the bank you want to open an account in
2. Go to the bank office to apply for a bank account
3. Submit the required documents and fill in your personal details
4. Deposit the required bank account balance, which varies depending on the chosen bank and its regulations.
5. Receive your Indonesia bank account number, other information, and debit card
6. Install the online banking system (optional)

How to Open a Bank Account without KITAS as a Foreigner

Opening a bank account in Indonesia without having KITAS as a foreigner used to be impossible. But now that the government has regulated the new requirements for bank opening to attract more tourist transactions, opening a bank account in Indonesia using a passport is possible for foreigners who do not have KITAS. Foreigners only need to choose the right banks that can provide their needs in the banking industry with a passport requirement and not KITAS or KITAP.

Opening a bank account in Indonesia does not take long and can be done in a day 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. Your case might be different. Contact us now to discuss this further.