To make their business operations easier to do in Indonesia, it’s often recommended that these companies open new bank accounts there. While international banking has become more reliable and interconnected than ever, many feel that opening a local bank account is more convenient than that. For this reason, foreign companies open bank accounts in Indonesia to ensure that their business will work without much hassle from using their home countries’ bank accounts.
About Banking in Indonesia for Foreign Companies
Before opening a new bank account, companies need to know that there are three types of bank accounts that they can use once they operate in Indonesia, such as checking, savings, and deposit accounts. Knowing the characteristics of each account will help suit a company’s needs.
Much like any country, foreigners who wish to register a bank account in a country different from their home countries will have to follow certain conditions. As such, requirements have been set when foreign companies open bank accounts in Indonesia.
In general, these are needed for a personal bank account:
- Letter of reference from the employer or sponsor
- Copies of passport and ID
- Copies of temporary stay permit (KITAS) or permanent stay permit (KITAP)
In the same vein, foreign companies need to submit these:
- Filled and signed documents
- Copies of ID card (passport and KITAS/KITAP)
- Tax registration number (NPWP), business license, TDP, certificate of incorporation
- Additional documents (the documents may differ in each bank)
Although each bank may have different requirements for additional documents, the primary requirements are relatively the same for all banks.
Benefits of Each Bank Account
Foreign companies that open bank accounts in Indonesia must learn the benefits of each account first to suit their business needs better.
- Able to delay payment through retroactive check
- Able to perform essential payments through this account (akun giro)
- Can be used to procure assets
- Can be accessed through ATMs to perform a transaction
- Can be used for debit transactions
- Its deposit certificate can be transferred
- Has a higher interest rate than the savings account
- The amount of the withdrawn deposit is similar to the agreed amount on the agreement with the bank customer
Getting to know the characteristics of each bank account can help the overall administrative process as foreign companies open bank accounts in Indonesia. Having more than one type of account is also recommended, as companies must perform regular automatic payments for deposit withdrawals and cash management once the business process has started.
Opening a Bank Account
When foreign companies want to open bank accounts in Indonesia, they need to prepare the following requirements as a prerequisite:
- Initial investment approval
- Deed of incorporation (akta pendirian)
- Domicile letter
- Tax registration number (NPWP)
- Official authorization from the company
- Copy of passport and stay permit
- Photo of the authorized person
- A minimum deposit of Rp 1.000.000/USD 1.000
- Other documents and requirements (see the previous section)
Upon submitting all of these to a bank company, the time required for the bank to process all of them usually takes 5 days.
While the requirements above are the general requirements for foreign companies to open new accounts, each bank may have different requirements for new applicants. For this reason, it is highly recommended that the companies contact their desired bank beforehand to ask if there is any difference from the general requirements for opening a new account.
The differences may take form in the minimum amount of deposit, required time to process the documents, administrative requirements, and many others.
At the same time, you can ask the banks if there is a difference in the registration process for opening new individual accounts. Compared to company-level bank accounts, individual accounts may require fewer documents for the registration process.
Upon contacting the banks, as a representative of your company, you can visit the main office in Jakarta or other Indonesia large cities, as the branch offices can be found anywhere in these cities.
It’s actually relatively easy for foreign companies to open bank accounts in Indonesia as long as they follow the aforementioned instructions above. Need to open a bank account before registering your company? Let izin.co.id help you save time by doing it for you.