• Online Banking in ID

The high level of convenience and accessibility which is inherent in online banking has caused many in Indonesia to use online banking services for their own of their company's benefit. For this same reason, online banking is expected to become more popular in Indonesia with each passing year.


Online banking is among the primary modes of conducting bank-related activities. Many people choose to use online banking services instead of personally going to a bank. Most of a person’s basic banking transactions can be completed via the use of online banking services. Anyone who uses online banking services may use them at any time and in any place. All they require are a computer or other device which can be used for the purpose, a working Internet connection, and a bank or debit card.

The vast majority of banks in Indonesia offer online banking services. In order to access online banking services, users must first register for their bank’s online banking services. Doing so requires the creation of a password. Once this has been completed, users may begin performing banking transactions via online methods. Most banks usually offer basic services such as transfers and bill payments. Certain banks in Indonesia also allow customers to open new bank accounts and apply for credit via online methods. There are a variety of other online services offered by banks in Indonesia. The list of banking transactions offered online vary depending on the bank.

Advantages of Online Banking

The use of online banking services bring about several advantages to its user. Convenience is arguably the most important advantage of online banking. All basic banking transactions such can be completed at the customer’s desire at any time and in any place. Online banking services also increase the speed and efficiency of the completion of transactions. Funds can be transferred between accounts at a much quicker rate than that experienced when using offline banking services. This is especially true if the two accounts are held at the same financial institution. Users are also granted the ability to monitor their accounts regularly. Doing so allows for the preservation of the safety of their accounts by facilitation the early detection and thus prevention of fraudulent activity and therefore significant financial losses.

Disadvantages of Online Banking

Despite the advantages of online banking, there are nevertheless some disadvantages which may become evident to those who are unrepared to make use of these important services. For example, those who are using online banking systems for the first time might not fully understand how to use them; thus, they might prefer to conduct banking transactions offline and in person. Although online banking security has seen much improvement over recent years, online banking accounts are nevertheless vulnerable to instances of hacking. Furthermore, online banking requires a stable Internet connection, something which is not always available in Indonesia. Connectivity problems may result in difficulty of completion of banking transactions.

Online Banking Services Offered by Indonesian Banks

Online banking services are offered by many Indonesian banks. They provide users with simpler and more convenient methods of bank account and financial management. As long as the bank and its website have enacted the adequate security provisions, there should be no trouble for users to complete online banking services.

Account Management

Online banking systems allow users to view their account information on their website. The user’s current balance and balance history can be checked. Users may also choose to initiate transfers between accounts or view their account activity.

Deposits and Payments

Deposit and payment services are usually offered by the majority of banks in Indonesia. They allow for the automatic transference of money into one’s account. Many employers use this method to pay their employees. Many people also use online banking to pay their bills; they set up automatic payments so that when bills are paid, the same amount will be withdrawn electronically from the bank account.

Debit Card Services

Debit card services are among the most common types of online banking transactions. Those who use a debit card will cause the information regarding the associated purchase to be put into a computer system. This information will then be transmitted online to the relevant bank, where the transaction will be processed within the user’s account.


E-statements, which are also known as electronic statements, are ordinary bank statements which have been made available online. For security reasons, the use of e-statements is highly recommended by many banks and credit unions, both in Indonesia and in other countries.

Growth of Online Banking in Indonesia

People across Indonesia are willing to accept anything that will make it easier for them to complete banking transactions. Thus, the prevalence of online banking across the country has greatly risen. Not only has online banking in Indonesia truly come to the fore during recent years, but more people and businesses than ever before have also accepted and recognized the many advantages that accompany the use of online banking. According to the latest statistics, approximately 32% of everyone who currently owns a bank account in Indonesia uses online banking services; this figure continues to rise with every passing year. Furthermore, the study from which those statistics were discovered also found that users of online banking services tend to be more loyal customers than those who are not users of such services. This fact means that banks in Indonesia which are able to attract more online banking users will find themselves in a more financially positive situation than those which are unable to do so because online banking users will provide much revenue for banks all over Indonesia.

How Businesses in Indonesia Benefit from Online Banking

Businesses across Indonesia can and do reap various benefits through careful and judicious use of online banking services. Although online banking is more popular with younger business owners than older ones, older business owners are nevertheless beginning to understand the immense value of online banking. There are several ways in which businesses in Indonesia benefit from the use of online banking.

Lack of Need to Visit a Bank

Business owners who do not use online banking services will often have to make many time-consuming visits to a bank. The high levels of population density and traffic congestion in many of Indonesia’s cities can sometimes make this an arduous task. Therefore, by using online banking services, business owners will save large amounts of time because they would be able to conduct any important transactions whenever they have a need to do so. Only an Internet connection is necessary for this purpose. Furthermore, users of a bank’s online banking services are not limited by the bank’s business hours because they are allowed to access their online accounts at any time.

Simplified Transference of Money

Another business advantage which is received by users of online banking lies in the fact that money transfers are greatly simplified. Using online banking services allows for simpler and instant money transfers to take place.

Online banking services also do much to facilitate money transfers between accounts. This is especially true if all accounts involved are registered with the same bank. Many banks in Indonesia also allow their clients to schedule future or recurring transfers. In cases of recurring transfers, the client would have the ability to personalize the amount to be transferred as well as the frequency of the transfer.

Simplified Payment of Bills

Many banks across Indonesia provide their clients with simple online methods to manage their bill payments. Online bill payment services allow users to pay a company or individual in a simple and understandable manner. The only pieces of information required for one to do so are the personal and bank account-related details of the company or individual to be paid. Once this information has been entered, the payments can easily be made. Some banks even offer options for either automatic or manual payments of bills; the option to be selected depends entirely on the condition of the company in question.

Monitoring of Accounts

Another important advantage of online banking as it pertains to businesses lies in the fact that it becomes much easier and more convenient to monitor all bank accounts related to the business at any time. Businesses benefit much from this advantage because business owners have to manage a great many financial transactions every day. By using online banking services, business owners eliminate the need to contact the bank to ask about individual transactions or await physical copies of bank statements to be sent to the company.

Online Banking in Indonesia FAQs

How can companies prevent acts of fraud related to online banking from being committed?2020-04-02T15:53:31+08:00

Many companies in Indonesia have faced some problems in dealing with acts of fraud which are associated with the company’s bank accounts. However, there are certain steps which could be taken by companies in order to prevent such acts from being committed. Business owners should ensure that the company bank account is as secure as possible; access to the company’s online bank account should be closely guarded. To ensure that the company’s online bank account can be monitored at all times, more than one trusted person should be granted access to the account. Doing so might not necessarily ensure that no acts of fraud will be committed; however, it will become substantially more difficult for such acts to take place if the preceding steps are taken. 

How commonly used are online banking servies in Indonesia?2020-04-02T15:52:48+08:00

According to a report conducted in 2018, there are currently around 132 million Internet users in Indonesia today. Of these 132 million users, approximately 50 million of them use a smartphone as their primary means of using the Internet. Although there is no exact figure on the anumber of these users who use online banking services, the fact that the use of online banking services in Indonesia has been on the rise allows one to infer that online banking services in Indonesia are used by a significant portion of the Indonesian population and are becoming more commonly used all the time.

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