Online Banking in Indonesia: Pros, Cons & Services

6 min read|Last Updated: January 17, 2023|

Online banking is one of the most popular ways to execute banking transactions, for both individuals and companies in Indonesia. Instead of travelling to a bank, many consumers choose to use online banking services. Online banking services can handle the majority of a person’s fundamental banking transactions.

In Indonesia, the great majority of banks provide online banking services. Users must first register for their bank’s online banking services before being able to utilise them. Users can then begin completing banking transactions online once they have set up their accounts.

Basic banking services, such as transfers and bill payments, are commonly available at most institutions. Customers in Indonesia can also use online means to open new bank accounts and apply for credit.

Advantages of Online Banking in Indonesia

The use of online banking services in Indonesia provides a number of benefits to the user, such as:

1. Convenience

All basic banking transactions can be conducted at any time and at any location at the customer’s request.

2. Efficiency

Online banking services also improve the speed and efficiency with which transactions are completed. Funds can be transferred between accounts considerably more quickly than when utilising traditional banking services. This is especially true if the two accounts are held at the same bank.

3. Accessibility

Users can also keep track of their accounts on a frequent basis. As a result, their accounts can be kept safe by facilitating the early discovery and consequently avoidance of fraudulent activities and, as a result, large financial losses.

Disadvantages of Online Banking in Indonesia

Despite the benefits of internet banking, there are some drawbacks that may become apparent to those who are not yet prepared to use these services.

1. Lack of Familiarity

Those who are utilising online banking systems for the first time, for example, may not completely comprehend how to utilise them and hence choose to conduct banking transactions offline and in person.

2. Vulnerable to hackers

Despite the fact that online banking security has improved significantly in recent years, online banking accounts are still vulnerable to hackers.

3. Poor connections

In addition, internet banking necessitates a consistent Internet connection, which is not always available in Indonesia. Banking transactions may be difficult to complete due to connectivity issues.

What are Some of the Online Banking Services Offered by Indonesian Banks?

Many Indonesian banks provide online banking services. They make bank account and financial management simpler and more convenient for users. Users should have no issue completing online banking services as long as the bank and its website have implemented suitable security measures.

Some of the online banking services include:

1. Account Management

Users of online banking systems can access their account information via a website. The current balance and balance history of the user can be viewed. They can also examine their account activity or initiate transfers between accounts.

2. Deposits and Payments

The majority of Indonesian banks typically provide deposit and payment services. They enable the automatic deposit of funds into one’s account. This is how many employers pay their employees. Many people also use internet banking to pay their bills; they set up automated payments so that the same amount is deducted electronically from their bank account when invoices are paid.

3. Debit Card Services

Online banking transactions involving debit cards are among the most common. When you use a debit card, the information about the purchase you made is entered into a computer system. This information will then be sent to the appropriate bank through the internet, where the transaction will be completed within the user’s account.

4. E-Statement

Electronic statements, often known as e-statements, are regular bank statements that have been made available online. Many banks and credit unions, both in Indonesia and elsewhere, strongly promote the usage of e-statements for security concerns.

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 has Businesses in Indonesia Benefit from Online Banking?

Businesses all around Indonesia will profit from using internet banking services carefully and wisely. Although younger business owners are more likely to use online banking than older business owners, older business owners are beginning to recognise the great value of internet banking after opening a corporate bank account.

Businesses in Indonesia can benefit from the usage of online banking in a variety of ways, among them:

1. Time Saved can be Spent on Company Operations

Businesses that do not use internet banking will have to make numerous time-consuming trips to the bank. On top of that, due to high population density and traffic congestion in many of Indonesia’s cities, this can be a difficult undertaking.

As a result, company owners will save a lot of time by using online banking services because they will be able to complete any crucial transactions whenever they need to. For this, all that is required is an Internet connection. Furthermore, because customers of a bank’s online banking services can access their accounts at any time, they are not bound by the bank’s business hours.

2. Simplified Transference of Money

Users of online banking also benefit from the fact that money transactions are substantially simplified. Money transfers are made easier and faster when using online banking services.

Online banking services also make it easier to move money between accounts. This is especially true if all of the accounts are held by the same bank. Many Indonesian banks now give their customers the option of scheduling future or recurring transfers.

The client would be able to customise the amount to be transmitted as well as the frequency of the transfer in the case of recurring transfers.

3. Simplified Payment of Bills

Many banks in Indonesia provide their customers simple online bill paying options. Users can pay a corporation or an individual using online bill payment services in a simple and clear manner. The personal and bank account-related details of the company or individual to be paid are the only pieces of information necessary.

Payments can be made quickly after retrieving these information. Some banks even provide the choice of either automated or manual bill payment; the method chosen is totally dependent on the financial state of the firm in question.

4. Monitoring of Accounts

Another significant benefit of internet banking for businesses is that it makes it much easier and more convenient to monitor all bank accounts associated with the company at any time. As business owners must manage a large number of financial transactions every day, this advantage is extremely beneficial to them.

Business owners can avoid having to call the bank to inquire about specific transactions or waiting for physical copies of bank statements to arrive in the mail by using online banking services.


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Can I access online banking from abroad?2022-01-03T10:35:53+08:00

You can use the service in most countries, but some don’t allow encrypted data to be sent over a public phone network. 

Can I open a bank account online in Indonesia?2022-01-03T10:35:34+08:00

Unfortunately, most banks in Indonesia will not permit you to complete the process of opening a bank account online from another country. You may be able to start the process by downloading or completing an online application form. 

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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