Opening a bank account in Indonesia
Upon moving to Indonesia, you may need to open a local bank account. This will definitely allow you to better manage your financial transactions, your daily expenses and, most importantly, avoid transaction fees abroad. This article tells you more about the requirements for opening a bank account in Indonesia.
How to choose a bank in Indonesia
Indonesia is home to several international banks that have branches throughout the archipelago. Some of them offer banking solutions that are specifically designed for making quick and secure transfers between different accounts and for executing seamless transaction between multiple currencies. These are particularly convenient options for expatriates. Furthermore, they often provide 24-hour online banking and customer care services, which can make life easier when abroad.
Indonesia has no shortage of excellent local banks. Most of them will allow you to do your banking in English so that you don't have to hire a translator to guide you through the process. It is advisable to choose a bank based on its proximity to your place of residence or workplace and on the services it provides.
Popular local banks in Indonesia include Bank Mandiri, Bank Negara Indonesia, Bank Danamon Indonesia and Bank Central Asia Tbk (BCA). In any case, you won't run out of options. Despite all this, it is always wiser to seek advice from other expatriates before moving in, or from your employer once you land in Indonesia.
Bank Mandiri is the largest bank in Indonesia in terms of assets, staff and branches. It is, therefore, considered a safe option, offering a wide range of financial solutions and services such as fast international transfers and transparent fees.
Otherwise, Bank Negara Indonesia, one of the largest banks in the country, is the first bank owned by the Indonesian government.
As for Bank Danamon Indonesia, it is best known for its microfinance operations, and its features include zero monthly fees and zero account maintenance fees if you have the minimum balance.
Finally, there's Bank Central Asia (BCA). The latter is mainly known for providing its account holders with a card that features a refund option called "Cash out".
Bank charges in Indonesia
Generally, in Indonesia, bank fees vary depending on the bank. You may be required to make a minimum initial deposit when you open your account.
In addition, you should normally be able to access an online fee schedule from your chosen bank. If the latter does not seem to publish a transparent list of fees, find out about other different costs before you open your account.
These costs may include a monthly administration fee, as well as a fee if you fail to maintain a minimum balance and an ATM fee. Most Indonesian banks do not charge for the use of ATMs outside their network. However, this is not the case for all of them. There are still some exceptions.
Your main concern as an expatriate may well be related to the costs incurred by international money transfers and that's understandable. These costs can vary greatly and add up quickly depending on the amount and frequency of the transfers. Generally, you will be charged a percentage of the total transaction in addition to a flat fee.
Requirements to open a bank account in Indonesia
Opening a bank account in Indonesia is often straightforward and can easily be done in a day. But such ease of process is subject to the submission of all the necessary documents. You will need to carefully prepare them before you start the process. On the hand, depending on the regulations, some banks may take up to five days to process the application. To open a bank account, a minimum deposit of IDR 500,000 is usually required, but international banks may require a higher amount.
Important:
When you visit a bank in Indonesia, make sure it has the usual international badges (Visa or MasterCard).
Requirements differ from bank to bank, but as a rule of thumb, you will need to submit the following documents:
- your passport
- your temporary residence permit (KITAS) or KITAP
- proof of residence in Indonesia.
In some cases, you may also be asked to further produce:
- a letter of recommendation issued by your employer
- passport-size photographs (4cm x 6cm)
- a bank certificate issued in your country of origin
- an existing debit or credit card
- a residence contact number
- a letter of domicile.
Good to know:
Most banks operate locally rather than nationally. So remember to tell your bank your new address if you move within Indonesia, and provide proof of address.
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