Opening a Bank Account In Indonesia

Opening a bank account is one of the steps every foreign company and most foreign nationals in Indonesia have to go through. In this article we break down the steps for both cases and also show how you can use Emerhub’s help to get the account opened without much effort or time from your side.

However, new regulatory changes by the Ministry of Finance  in September 2015 have changed that and it is now relatively easy for a foreign national to open a bank account. It is one of the first enforced parts of the Indonesia’s government reform package to simplify various currently over-bureaucratic processes.

In this article we cover both opening bank account as a foreign citizen and as a foreign owned company (PT PMA).

How to open bank account as a foreign national

Changes to opening bank account as a foreign national

To be capable of opening a bank account in a foreign currency in Indonesia so far required many different documents.  Thus, for example, general duties of care of the credit institutions demand, among other things, a passport with a valid temporary residence permit (KITAS). Since the application of the KITAS has always been linked with a lot effort and additionally through the individual agreement did not make sense at all, this argument often led to a great obstacle to the establishment of an international company in Indonesia. By the simplification and streamlining of those formalities the government expects to encourage foreign nationals to open a foreign exchange account at a local bank. In addition, this convenience is also expected to increase the interest of foreign nationals to invest in Indonesia.

New process of opening bank account as a foreign national

The new reform consists 3 ways to open an account and is based on the balance of which will be deposited on:

1. For maximum US$ 50,000 balance

The tourist bank account is limited by a balance of minimal US$ 2,000 and maximal US$ 50,000. It is possible to open this account only with a passport without having to submit another document and even without a KITAS. One must only reckon with higher fees when the balance does not exceed US$ 10,000.

2. From US$ 50,000 balance

The local bank account is not related with a fix balance and therefore a useful opportunity when the balance exceeds the amount of US$ 50,000. This bank account requires a passport and another document by choice. This document could be a reference of a bank in the country of the foreigner, a rental agreement contract, wife´s identity document or a credit card.

3. The bank account for foreigners with a particularly large balance

This offer is only open with a balance that does exceed US$ 1,000,000.  The requirements correspond to those of the local bank account and therefore differ only by the different taxation and the prioritized account opening.

Opening a bank account as a PT PMA

The process of opening a corporate bank account in Indonesia vary slightly from bank to bank. Here are the documents you need to present in nearly all banks after your PT PMA registration is complete in order to set up an account:

• Copy of PT Tax card (NPWP)
• Copy of PT Domicile letter
• Copy of BKPM Investment registration Letter (SIUP)
• Copy of Deed of Establishment (AKTA)
• Copy of ID card of all board of directors, shareholders, and authorized signers
• Copy of Company registration letter (TDP)
• Copy of PT deed of establishment’s approval from Ministry of Law and Human Rights (Pengesahan KEPMENHUMHAM)

Opening a corporate bank account before your PMA registration is complete

In order to save time, you can already register your bank account halfway through the PT PMA registration. Unfortunately, this cannot be done in all banks.

Here are the documents you will need:

• Copy of PT Tax card (NPWP)
• Copy of PT Domicile letter
• Copy of BKPM Investment registration Letter (SIUP)
• Copy of Deed of Establishment (AKTA)
• Copy of ID card of all board of directors, shareholders, and authorized signers
• Letter of Attorney from all shareholders, board of directors and all commissioners to all authorized signers. All documents of opening the bank account needs to be signed by shareholders, board of directors, and commissioner (each page)
• Cover note from your notary mentioned that: The Approval of the company deed of establishment still in the progress at the Ministry of Law and Human Rights

You should present the following documents to the bank no later than a month after applying for a bank account:

1. PT deed of establishment’s approval from Ministry of Law and Human Rights (KEPMENHUMHAM)
2. BKPM Investment registration letter (SIUP)
3. Copy of company registration letter (TDP)

All the steps above are general requirements from most of the banks in Indonesia. Some banks might have other specific requirements.

Opening a corporate bank account from overseas

It is possible to open a bank account while not being physically in Indonesia, for example by Emerhub. In order to do that, we will need:

• Your requirements for the account
• Letter of authorization
• Documents listed above

Opening a bank account for a representative office

A representative office can open a corporate bank account in Indonesia and most banks need to see these three documents to make it happen:

• Business License (in a form of SIUP or other forms of license from the government authority related with the business of the company)
• Copy of Company Registration Certificate – TDP (if any)
• Copy of Tax ID – NPWP

Major Banks in Indonesia

There are well over a hundred banks in Indonesia – many of them with a tiny market share and niche financial products.

Despite the slight cooling of the economy, major banks have been robust and provide sufficient loss-absorption buffers against rising challenges according to the rating agency Fitch.

Talking about specific banks, here are the biggest three banks in Indonesia (depends on your means of measurement):

	Largest by several measures, Mandiri was born out of the 1997-1998 Asian Financial Crisis (AFC). The government fused together four failed banks that required state bailouts.
	BRI was founded in 1895 as Priyayi Bank of Purwokerto, gained its current name in 1946, and became a state-owned bank in 1950. Thanks to the rural units that the bank established in the 1970s, the lender has established an identity based on its national presence, microfinance, and loans to small and medium-sized companies.
	One of the two privately owned lenders among the top five, BCA is Indonesia’s third-largest bank by assets and biggest by market value. The institution came under public control after theAFC, but made a quick recovery and was again privatized.

If you’re interested in getting some impartial third party perspectives on these banks you can look at this feed on choosing a bank at Living in Indonesia.

Recap

Some banking services in Indonesia are still developing. It can happen that three different tellers from the same bank give you three different lists’ of documents you need to open an account.

Our suggestion is to build a relationship with a certain person at your branch if you know that you will be dealing with the bank often. This is usual in Indonesia and can save you a lot of time.

If the future account holder wants to outsource account registration, Emerhub can open an account for you at a bank and branch that suit their location and needs.

Either way, banks are competitive in Indonesia and many services are quite advanced once you get going.

 

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