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:
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.
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 In addition, checking accounts can be set up for automatic payments so that demand deposits or giro can be withdrawn on a certain date and facilitate cash management for the company.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:
Timeline: Approximately 5 (five) days.
Note: There is possibility that each bank has additional requirements.
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.