Indonesia has put herself on the map with its tremendous growth in digital transformation. Despite the pandemic, Indonesia’s digital economy grew by 11% in 2020 from 2019, showing its resilience. Such growth has attracted many investors and entrepreneurs to set up a company in Indonesia.
Why a Corporate Bank Account is Important for Businesses
Aside from the incorporation requirements of opening a corporate business bank account, the need for one is further emphasised based on these reasons:
Corporate Bank Account Opening Requirements for Foreigners Setting Up PT or PT PMA Company
If you are a foreigner who wishes to set up a PT company in Indonesia, you can still do so under a local nominee arrangement. In this situation, having a corporate bank account is essential for you as you can take control of your company by managing all cash flows.
The requirements to open a corporate bank account in Indonesia is relatively simple and straightforward. These requirements include:
Documents Required to Open a Corporate Bank Account for PT or PT PMA Companies in Indonesia
If you fulfil the requirements for opening a corporate bank account, it is important to note the documents that you will need to submit for a successful application.
The documents that you will need to submit as listed below:
|CHECKLIST OF DOCUMENTS NEEDED|
|1. Copy of tax identification number (NPWP) and tax certificate (SKT)|
|2. Copy of your Domicile letter from the building management or tenancy agreement|
|3. Copy of your Deed of Establishment (AKTA)|
|4. Copy of Business Registration Number (NIB)|
|5. Copy of the identification cards of all directors, shareholders, commissioners, and authorised signers|
|6. Copy of Business License (Izin Usaha)|
|7. Copy of Approval of AKTA from the Indonesian Ministry of Law and Human Rights (SK Kehakiman)|
Aside from those documents, you are to also fill up and complete the bank application form. Some banks require more documents aside from the list above – your bank of choice will let you know which documents that they will require upon registering of your bank account.
Opening a Corporate Bank Account for Representative Offices in Indonesia
Representative offices in Indonesia can also open a corporate business bank account, although they are not allowed to generate any revenue within the country. To do so, you will need to submit the following documents to your chosen bank:
Similar to the procedures for a PT or PT PMA company, verification of the original documents will be conducted by bank officer physically or through a video call.
Factors to Consider When Opening a Corporate Bank Account in Indonesia
Before you decide on your bank of choice for your corporate bank account, there are some factors to consider. It is important that you choose a bank that aligns to your financial needs, else you will need to spend time and effort to switch banks.
Some of the factors to consider and questions to ask yourself are:
Here are some of the fees that you may want to check with your shortlisted banks to help in making your decision:
Banks in Indonesia
After understanding what you should take note of when deciding on your financial partner, you must be wondering what are banks in Indonesia that you can consider. There are both local and international banks in Indonesia.
Here’s a list of the top 3 local banks in Indonesia:
For those who are considering or prefers international banks, here are some of them who have branches in Indonesia:
Anti-Money Laundering & Terrorist Financing Policies
With the rise of digital banking, financial institutions have stepped up their security, including banks in Indonesia. All the banks in Indonesia have implemented polices to combat anti-money laundering and financing for terrorists.
In order to do so, banks have put forth a set of guidelines, which includes:
Banks will also undertake customer due diligence measures in these scenarios:
Laws Governing Indonesian Banks
The banking industry in Indonesia is regulated by Bank Indonesia (BI). It executes numerous monetary policies and ensures the rupiah’s stability.
Law No. 7 of 1992 governs banks in Indonesia, which has since been revised by Law No. 10 of 1998. Law No. 7 was enacted to encourage Islamic banking where commercial and rural banks can both operate on Islamic banking principles under Law No. 10. The monetary policy regulations are governed by Law No. 21 of 2011. It also controls and supervises banking institutions, monitors the solvency of banks, and conducts bank examinations.
The Bureau of Industry and Security (BI) has issued Regulation No. 14/24/PBI/2012, which addresses the Single Presence Policy (SPP). This rule increases the competitiveness of the Indonesian banking industry by improving supervisory standards and streamlining bank ownership.
Indonesian banks are supervised by the Bank of Indonesia (BI) and are required to disclose international loans and foreign currency influxes to the BI. Aside from the BI and the OJK, there are a number of other authorities in Indonesia that are responsible for bank regulation, which are:
Common Violations of Bank Laws in Indonesia
Indonesia’s government has enacted a number of new banking-related regulations and has also begun to prosecute persons who break the new legislation.
Some of the common violations of bank laws in Indonesia include:
1. Exporters who do not keep foreign exchange gains from natural resources in Indonesian banks
Exporters must deposit their foreign exchange gains received from natural resources in Indonesian banks, according to current bank legislation in the country.
2. Carrying large sums of foreign currency while crossing the border
One of Indonesia’s banking rules currently prohibits the importation of foreign currencies on behalf of either Indonesians or foreigners. Some banks have even been accused of exposing depositors’ personal information. Banks are only allowed to reveal customer personal information when a government agency or court orders it.
A representative office is a type of business entity that foreign companies set up to conduct research as they have interest in exploring potential business opportunities before making a decision to set up a permanent office. It does not have a legal status, and cannot engage in trading or any business activities that generate income. However, it can conduct marketing and promotional activities.
There is no restriction to how many bank accounts that your company can apply. However, you will require to have at least one business bank account.
The most common types of bank accounts in Indonesia are savings accounts, checking accounts, and deposit accounts.
The duration depends on individual banks and the quality of submitted documents. It can take anytime from 1 day to a week.