Once the company registration process is complete, you are then required to open a corporate bank account. Indonesia also provides a variety of financial institutions ranging from local banks to international banks. This article will guide you through what you need to know about successfully opening a corporate bank account in Indonesia.
Frequently asked questions on this topic:
- What do I need to open a bank account in Indonesia?
- Which bank account to open in Indonesia?
- How long does it take to open a bank account in Indonesia?
- How much money do I need when opening a corporate bank account in Indonesia?
- Requirement of opening a corporate bank account in Indonesia?
- Can a foreigner open a bank account in Indonesia?
- What other bank policies I shall be aware of?
What do I need to open a bank account in Indonesia?
Before you decide which bank you want to open an account with, there are a few factors that you should consider, such as:
- Availability of internet banking
- Ease of making transactions
- Minimum deposit requirements
- Monthly fees
- Services and facilities provided
- The bank’s reputation
- Types of currencies you will be transacting in
- Language options, does the online banking offer English language
Which bank account to open in Indonesia?
The three leading local banks that you may consider opening a corporate bank account in Indonesia are:
- Bank Mandiri
- BRI (Bank Rakyat Indonesia)
Some international banks in Indonesia include:
- UOB (United Overseas Bank)
- Bank of China
- Standard Chartered Bank
How long does it take to open a corporate bank account in Indonesia?
Recently it does not take long to open a corporate bank account in Indonesia. In fact, it can take one day if you have the bank’s required documents prepared and ready. However, some banks may take up to five days because of different regulations.
How much money do I need when opening a corporate bank account in Indonesia?
When opening a new bank account, some banks will charge an opening fee, and some others will not. So, when compared to foreign banks, local banks have a lower setup fee or sometimes may not charge at all. There may be additional fees for extra services, such as internet banking or multi-currency. A minimum deposit is also required when opening an account.
There are also other fees you might not know of, which include:
- Minimum deposits: the smallest amount needed to open a bank account. It varies from IDR 1.000.000 - 10.000.000
- Monthly average balance: the lowest average amount you should have in your bank account daily
- Fall-below fees: also applies when you are not able to reach the minimum deposit
- Early closure fees: when your bank account is closed within six months
- ATM withdrawal fees: fees charged when using ATM mainly applies to non-members of the bank
- International transfer fees: applies when you send money to another country
Requirements of opening a corporate bank account in Indonesia
The requirements for opening a corporate bank account in Indonesia may differ from bank to bank. However, the conditions that nearly all banks require include:
- An initial deposit of IDR 1 million
- A copy of the Indonesian identification card or passport for Indonesian citizens
- A copy of the passport or KITAS (stay permit) of foreign individuals
- A copy of the business permit and proof of identity of business owners for individual businesses
- A copy of the tax identification number (NPWP), deed of establishment, and also articles of association for non-individual businesses
- A monthly account administration fee
- Business license
- Domicile letter
Can a foreigner open a bank account in Indonesia?
Indonesian government has made the process of opening bank account applications smoother and also faster for foreigners. As a foreigner, the process of opening a new bank account will require additional steps, and additional documents will also be required. So, for a foreign-owned companies also need a completed and signed application form, relevant supporting documents, tax registration number, certificate of incorporation, Business Identification Number, and also OSS Business License.
Representative offices can also open corporate banks, which would require the company registration certificate, business license, and tax registration number.
If your foreign owned (also known as PT PMA) company’s registration is not yet completed, you can still open a corporate bank account to save time. But, the downside of this is that not all banks can do this for you.
The documents you will need are:
- A copy of the domicile letter
- A copy of the Business Identification Number (NIB)
- Letter of attorney from the shareholders, board of directors, commissioners, and authorized signers.
- A copy of the OSS Business License
- A copy of the identification card of all members of the board of directors, shareholders, and authorized signers
- Signature of shareholders, board of directors, and also commissioners on all pages of the documents
- A copy of the tax identification number
- Cover note from the notary public stating that the company’s approval deed of establishment is still in progress at the Ministry of Law and Human Rights.
The following documents should be presented to the bank no longer than one month after applying for the bank account:
- Approval of deed of establishment from the Ministry of Law and Human Rights
- BKPM investment registration letter
- A copy of the company registration letter
Listed above are the general documents the bank will require; also some banks may have other specific requirements.
Some corporate bank accounts in Indonesian banks include foreign currencies such as dollars, ATMs, E-Banking services, SMS banking, and internet banking.
What other bank policies I shall be aware of?
Banks in Indonesia on the other hand must have policies and procedures regarding anti-money laundering and prevention of terrorism financing programs. This comprises of:
- The identification and verification of the customer
- The identification and verification of a beneficial owner
- Termination of business relationship or rejection of a transaction
- Maintaining accurate data regarding the transaction, administration of customer due diligence progress, and administration of policies and procedures
Banks currently must conduct customer due diligence when:
- Engaging in business relationships with prospective customers
- There is a financial transaction in IDR or foreign currencies with a minimum of or equivalent to IDR 100 million
- There are suspicious financial transactions involving money laundering or terrorist financing
- The bank doubts the validity of the information provided by the prospective customer, customer, and/or proxy
Finally, you can prepare the documents needed to ensure that the process of opening a corporate bank account in Indonesia is smooth and fast. Having a local bank account can also help you in daily transactions, asset storing, payments, and other financial activities. Spend less time on admin and more time focused on what’s important – your business. We will guide you in choosing the most appropriate bank partner to open a corporate bank account in Indonesia.
Acclime initially published this article. Greenhouse has received permission from Acclime to distribute the content.
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