How to Open a Bank Account in Indonesia

Have you recently moved to Indonesia, or are you planning to relocate there? Whether you are doing so for personal or business purposes, opening an Indonesian bank account is essential for settling in smoothly.

As the largest economy in Southeast Asia, Indonesia is an attractive location for foreigners seeking business and lifestyle opportunities.  However, banking in Indonesia might be a bit complex for newcomers. 

This article will guide you through the process of opening a bank account in Indonesia, including the documents to prepare and the common fees to consider. We’ll also provide insights into the top banks in Indonesia for foreigners to help you get started on the right foot. 

If you live, work, or frequently travel to Indonesia, having a local IDR account can offer many conveniences, including the ability to avoid international ATM fees when withdrawing cash.

Having a bank account in Indonesia also makes it easier to receive a salary or other income directly without having to pay for currency conversion. 
If you do business or plan to start a company in Indonesia, having a local business bank account can make it easier to handle your transactions, from paying suppliers and employees to receiving payments from customers.

Banks in Indonesia usually offer three types of accounts for everyday banking: savings, deposit, and checking accounts.

• Savings account: This is the most common type of personal account for individuals in Indonesia. It allows for deposits, withdrawals, and transfers. Many banks offer additional features like online banking and debit cards.
• Deposit account: Deposit accounts often offer higher interest rates than savings accounts but with withdrawal restrictions.
• Checking accounts: Checking accounts in Indonesia are typically used for business purposes. They allow for check writing and other business-related transactions. 

Additionally, some banks in Indonesia offer joint accounts for business partners and married couples to manage shared finances. 

The required documents and information you’ll need to provide when opening a bank account in Indonesia vary depending on the bank and account type. However, here are the commonly required documents for personal and business account opening.

Most banks in Indonesia will ask you to provide the following when opening a basic bank account as a foreigner:

• Passport or a Resident Identity Card (KTP) if you’re an Indonesian citizen
• Temporary Stay Residence Permit (KIMS/KITAS) or Permanent Stay Permit (KITAP)
• An initial deposit, typically around IDR 500,000 for standard savings accounts
• Local mobile number in Indonesia 

Depending on the requirement and procedure of each bank, you may also have to provide additional documents and information, such as:

• Taxpayer Identification Number (NPWP)
• Proof of income or employment
• Proof of address in Indonesia
• Reference letter from your employer or a trusted individual

Opening a corporate account typically requires more documents than a personal account. Foreign companies or individuals starting a business in Indonesia will need to provide additional documents and information, including:

• Passport of each shareholder and/or director
• The company’s tax registration number
• Deed of Establishment, with approval from the Ministry of Law and Human Rights
• Articles of Associations
• Business Identification Number (NIB)
• Business License (SIUP)
• Proof of company’s address

While the exact account opening process may vary slightly between banks, the general steps are as follows:

1. Choose a bank: Research and compare different banks to find the one that suits your needs. Consider factors like fees, branch networks, and account features like direct deposit and interest rates.  
2. Prepare the documents: Check with your chosen bank for the list of documents you’ll need to prepare and whether you’ll need to bring in photocopies. 
3. Visit the bank: Visit the bank and fill out the application form there. Some banks may require you to schedule an appointment in advance, particularly if you’re opening a business account.
4. Make an initial deposit: Make the required initial deposit, which varies depending on the bank. 
5. Set up your account: Once your account is opened, you can set up an online banking account, download the mobile app, and activate your ATM card.

While some banks offer online account opening, it is primarily available for Indonesian citizens with e-KTP. Foreigners likely have to visit a bank branch in person to open an account. 

Foreign companies may be able to hire a lawyer with a power of attorney to open a bank account in Indonesia remotely. However, this option often involves more complex procedures and additional fees. It's essential to check with the bank directly to understand the specific requirements.

Banking fee is another factor you should be aware of when opening a bank account in Indonesia.

In addition to the initial deposit, here are the fees you should consider when choosing a bank account:

• Monthly fees: Indonesian banks typically charge an administrative monthly fee of around IDR 5,000 to IDR 20,000, though some offer fee-free accounts or waive the fee if you maintain a minimum balance.
• Transaction fees: Compare fees for transactions like cash withdrawals, transfers between banks, and international transfers in foreign currencies. 
• Card and ATM fees: Banks often charge for issuing debit cards and ATM usage, especially for withdrawals outside the bank's network.

Most major banks in Indonesia provide a fee structure for each account type on their website, so we recommend checking those pages and comparing them to find the most cost-effective option. 

There are over 100 banks in Indonesia, each offering unique products and services for its customers. Let's look at the top 3 popular choices for foreigners.

In addition to these banks, there are also Islamic banks like Bank Syariah Indonesia (BSI) and foreign banks like Bank of China and Standard Chartered to choose from. However, foreign banks usually have branches in only major cities, which might not be ideal if you live or do business in smaller towns.

With thorough research and preparation, opening a bank account in Indonesia can be a stress-free experience. Make sure to compare different banks and pay extra attention to their services and fee structure to select the best option for your business or everyday banking needs.