How to Open a Bank Account in Indonesia?

To start a business in Indonesia, one of the primary steps in the incorporation process is to open a corporate bank account. We discuss everything you need to know about opening a bank account in Indonesia in this short guide, including the necessary documents, common types of accounts, and banking fees, besides noting the country’s prominent banking institutions.

Corporate bank accounts are essential for any company in Indonesia as it is part of the incorporation process. A company cannot share its corporate account with another company.

Documents required to open a bank account in Indonesia 

1. The Company itself requires the following documents:

• Deed of Establishment;
• Decree of Ministry of Law and Human Rights;
• Business Identification Number;
• Tax Card; and
• BKPM Approval.

2. Shareholders

• Individual:
  >> Passport; and
  >> Proof of address.
•  Entity:
  >> Certificate of Incorporation;
  >> Memorandum & Article of Association;
  >> Latest Profile/Company Extract (which indicate the structure of Company: Shareholders, Director, Address, etc);
  >> Company structure (which indicate the Ultimate Beneficial Owner/Individual ownership with ≥ 10% shares of the Company); and
  >> Passport of each individual Shareholder.
• Director
  >> Passport of all Director and the signature page on the passport to validate their signature on the resolution; and
  >> Details of the Director: email, mobile number, address.
• Commissioner
  >> Passport of all Commissioners and the signature page of their passports to validate their signature on the resolution.

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Procedure for opening a corporate bank account

The procedure of opening a corporate account is as follows:

1. Send all the required documents for Bank review.
2. Bank will send the Board Resolution which states the appointment of Authorized Person to open, operate, maintain, appoint account signatory(ies) and close the bank account. We should get it signed and send back to Bank for their review via email.
3. The bank will send the account opening form to be filled by the Company.
4. Once finished, scan and send to Bank for their review.
5. If all comply, all original signed documents (Board Resolution and Account Opening Form) need to be sent to the Bank for their record.
6. Minimum initial deposit is equivalent 100 million rupiah (US$6,929) for each account.
   • The Company can have as many accounts with different currencies according to their needs but must have the equivalent of the minimum deposit.
   • If there are no transactions within 6 months, the account will be deactivated automatically.
7. Apply for internet banking, if needed.

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After sending all the aforementioned documents to the bank, the bank will send a Board Resolution which is a document that states the appointment of the Authorized Person to open, operate, maintain, and close the bank account.

This document must be signed by the applicant and sent back to the bank for their review. The minimum initial deposit varies between banks ranging between 1 million rupiah (US$68) to 10 million (US$684) for each account. The company can have as many accounts as they like with different currencies according to their needs but must have the equivalent of the minimum deposit.

If all the documents are in order, then the process will take no longer than one working day. If there are no transactions within six months, the account will be deactivated automatically.

Common types of bank accounts

There are three common types of bank accounts in Indonesia, these are:

1. Checking account – Payments can be made through cheques or demand deposit (GIRO);
2. Savings account – The most frequently used account that allows for real-time transfers; and
3. Deposit account – Offers higher interest rates and the deposits can only be withdrawn based on an agreement with the bank.

Most Indonesian banks offer both rupiah and foreign currency saving accounts such as for US Dollar, Singapore Dollar, Japanese Yen, Euro, Hong Kong Dollar, Swiss Franc, and the Australian Dollar. The most common foreign currency used by businesses in Indonesia is the US Dollar.

Banking fees in Indonesia

Most banks in Indonesia will have a monthly administrative fee ranging from 12,500 rupiah (US$0.84) to 15,000 rupiah (US$1) per month. This is dependent on the type of account. Moreover, most banks will allow free cash withdrawals at their ATMs, although there is normally a charge for using another bank’s ATM of up to 6,500 rupiah (US$0.44) per transaction.

Which banking institutions to use?

Bank Mandiri

A state-owned financial institution, Bank Mandiri is the largest bank in Indonesia in terms of assets which totaled to more than US$110 billion as of 2021. The bank supports its more than 21.9 million customers through 2,500 branches throughout the country.

Bank Central Asia

Bank Central Asia (BCA) is considered Indonesia’s largest private bank. The bank has more than US$60 billion in assets, over 1,200 branches nationwide, more than 18,000 ATMs, and more than 34 million customers.

Bank Negara Indonesia

Bank Negara Indonesia (BNI) is another state-owned bank with more than 60 million customers in Indonesia. The bank has more than US$67 billion in assets, more than 16,000 ATMs, as well as branches in London, Seoul, Tokyo, New York, and Hong Kong.

Also read

• An Overview of Indonesia’s Double Tax Avoidance Agreements
• Audit and Compliance in Indonesia: A Guide for Foreign Investors
• Incentives for Doing Business in Indonesia

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