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Banking in Indonesia

Throughout Jakarta there are numerous foreign and local banks all offering a full range of banking services. Many offer both Rupiah and foreign currency (usually US$) savings and checking accounts, term deposits, as well as credit and debit card accounts and foreign exchange services. Safe deposit boxes are also available at some banks. Foreign Banks generally have several requirements for opening a personal bank account including letters of reference from your employer or sponsor as well as copies of your passport and KITAS card. For checking accounts a reference from your previous bank, your company's Tax Registration Number and a letter from your company verifying that Indonesian income tax is paid by the company should also be submitted. In order to open a personal account in US$ many banks also require a minimum deposit be maintained. Because of the vast range of services and policies unique to each bank, it is advisable to call and make inquiries directly, then follow up by a personal visit. Many expatriates living in Indonesia choose the option of maintaining their normal account in their home country or opening an account in Singapore. Their employer will then transfer their salary each month directly to this account. You may choose to receive part of your wages in Indonesia in Rupiah cash to cover your cash expenditures in Jakarta. Some companies also have a system where you can write a personal check from you home account and the company will issue you Rupiah cash.

Automatic Teller Machines
ATMs are safe located in shopping centers, malls and office buildings throughout the city and operate with widely accepted international credit and debit cards affiliated with: Alto, Maestro, Cirrus, Plus, Master Card, Visa. US$ cash withdrawals are available from Citibank ATMs. If you have a dollar account in other banks such as BCA or BII you can also make ATM withdrawls from your US Dollar account but the cash withdrawal will be in Rupiah. Many people prefer to do most of their banking at the ATM machines to avoid that long lineups in the bank and also the flexibility of banking hours. Many ATMs are accessable 24 hours a day. Customers can take advantage of the other services that the ATMs offer such as paying bills, transferring to other banks as well as buying pulsa for mobile phones.

secure machines and money changer locations. People who earn less than Rp 10 million a month are allowed only to get credit cards from two issuers. (1/2012) Each bank has its own requirements for issuing credit cards to expatriates. Seen as more mobile than the average Indonesia. Applicants who already have a credit card from another lender may have an easier time getting additional lines of credit from Indonesian banks. expats are generally . use well lit. For example. This leaves a lot of expats in the lurch. If so. It also seems that having a history with a particular bank (holding other accounts there) will make applying for a credit card much easier. proof of local residence. and the credit limit is set at a maximum of three times your monthly income. especially when removing large amounts of money. must have a monthly income of Rp 3 million. Some banks may consider whether or not you own or rent your residence as a factor in the approval of the credit card. as well as evidence of sufficient income. see if your bank is affiliated with the Rintis Sejahtera’s Prima ATM network. this gives you withdrawal and other ATM privileges at the ATMs in a wide network of banks across Indonesia. in order to qualify for a credit card. and they vary widely! Some expats find it difficult to get a local credit card as both national and international banks often require hefty deposits on credit cards. Banks should only require a passport. Be sure to securely put your money away before you walk away from the ATM machine. because for the most part they rent their homes or apartments during their stay. a letter of notice from the expat’s employer regarding his or her employment status may help to facilitate the process. Credit Cards Most of the major national and international banks in Indonesia issue credit cards. and temporary residency permit (KITAS). sometimes up to 80-110 percent of the available credit line on the card. take appropriate measures to avoid unwanted attention.Before opening a bank account. but Indonesian banks may also ask for other "flexible” requirements when processing nonIndonesian applicants. Others have encountered situations where their applications were seemingly not processed (no response was ever received from their application) or the expat applicant was told that he/she was not eligible because they were not citizens of Indonesia. The basic requirements for issuing cards in Indonesia is that the holder must be 21 years old. At ATM machines.

By comparison. But the banks close earlier and can take longer to change money. etc) often give exchange rates that are at least as good as the money changers. Be extremely careful if the banknotes given are only the green ones (20K) or smaller. Carry a minimum number of credit cards with you and have a record of their numbers and who to call if they are stolen or lost. since debit cards allow thieves to wipe out the total amount from the current account. Crimes related to credit card misuse are prevalent and include the use of stolen or counterfeit credit cards for internet transactions.viewed by local banks as having a greater risk factor. Banks also have a lower risk of giving you fake Indonesian money. For most expatriates with foreign currency salaries to spend. This probably happens because of the unfamiliarity of the currency and you can be easily confused by the . opening a local bank account can also reduce your exposure. It is recommended to bring only brand new unmarked notes. as old. Reduce your exposure by opening a local account and shredding all receipts (they generally have your full credit card number and expiry date on them) and documents with personal information. BCA. Do not use VISA or MasterCard debit cards tied to your current account when making purchases. dirty or marked notes are often rejected by money changers. Money Changers Money changers are conveniently located throughout the city as well as in most shopping malls. department stores and hotels. BNI. It is preferable to use cash for purchases and only take local currency from ATMs using your banking network. and sometimes a bit better. acknowledged that banks often had additional requirements for foreign nationals who were seeking credit. They have a folding trick which can rip you off for at least half of your money. Credit Card Fraud Expatriates are advised to be extremely cautious using credit cards in Indonesia due to the danger of credit card fraud. local banks (BII. A spokesperson from the Indonesian Credit Card Association (AKKI). Once you understand the mysteries of Indonesia's money and banking system you will soon feel comfortable with the local currency. Indonesia offers many great bargains! A word of caution ...

Be sure you understand the transaction and count all of your bills in front of the money changer before you leave the counter. Minimum initial deposit of USD 100 or SGD 200 3. Reference Letter / Letter from the employing company stating he is an employee of the company 4. has it's own requirements for foreigners to open a bank account.Savings Account • • • • Foreigners must show a passport and KIMS/KITAS (Temporary Residence Permit/Temporary Visiting Permit) Passport A letter from employer stating you are employed by your company Minimum initial deposit of IDR 500. Here are some current requirements (4/2012) for examples: Mandiri Bank .Dollar Account 1.000 Mandiri Bank .physical management of so many bills. of course. You'll find big differences as well between Indonesian banks and the foreign banks. Copy of Passport and Residence Permit (KIMS)/ Temporary Residence Permit (KITAS)/ Permanent Stay Permit (KITAP) 2.Tahapan Savings account • Copy of Passport and Residence Permit (KIMS)/ Temporary Residence Permit (KITAS)/ Permanent Stay Permit (KITAP) . Requirements for Opening a Bank Account in Indonesia Each bank. Account is Charged a monthly administration fee BCA .Foreign Currency Savings Account • • • • • • • • Individual Customer Can be created in the name of two individuals (joint account) Copies of valid ID Copy of Passport and Residence Permit (KIMS)/ Temporary Residence Permit (KITAS)/ Permanent Stay Permit (KITAP) Minimum initial deposit USD 100 Minimum balance USD 100 Charged with monthly administration fee Charge for balances under minimum Bank Central Asia (BCA) .

For transfer of other currency other than USD.125 % of total transfer amount Hongkong Shanghai Banking Corporation (HSBC) Transfer fees for: • Banking in person . the charges are USD 30 for recipient bank + USD 15 for HSBC Indonesia (total charge USD 45/transfer) Banking Online .Transfer Fee for USD currency from HSBC Indonesia to overseas destinations is USD 25 for recipient bank + USD 15 for HSBC Indonesia.000 Reference Letter / Working letter from your employer Account is charged a monthly administration fee Citibank Savings Account • • • • • Foreigners must show a KIMS/KITAS (Temporary Residence Permit/Temporary Visiting Permit) Passport Minimum initial deposit of IDR 5.000.Transfer Fee for USD currency from HSBC Indonesia to overseas destinations is USD 25 for recipient bank + USD 7 for HSBC Indonesia. (total charge USD 40/transfer).000 Must maintain a balance per month of IDR 50.• • • Minimum initial deposit of IDR 500.000 /month Transfer fee from Citibank Indonesia to overseas destinations are charged ⅛ % or 0. the charges are USD 30 for recipient bank + USD 7 for HSBC Indonesia (total charge USD 37/transfer) • . (total charge USD 32/transfer)and for transfer of other currency other than USD.000.000 balances that fall under minimum are subject to penalty of IDR 100.

in China during the Sung Dynasty. It is an agreement that this much of something (usually some kind of metal gold. Africa. Or they demanded more coins. People also used paper as money. and this much cheese.money Money is basically an agreement between people. where people used small pieces of bronze to trade things starting around 1500 BC. or cocoa beans. or Europe. while in southern China it is mostly rice. Han Dynasty coin of the Empress Kuo . and fairly rare will work. people mostly farm wheat. or cowrie shells. they could mix the gold with more silver to make it go further. and imported gold. But of course people soon figured out that these coins weren't really worth what the government said they were worth. or mix the silver with more bronze. and this many slaves. not too heavy. They were used to pay mercenary soldiers. or bronze) will be worth this much bread. gradually metal coins became common all over Europe. so it would be the same amount of gold or silver as before. Paper money (a promise to pay gold or silver or bronze in exchange for this piece of paper) was first used around 1150 AD. That way they could make more coins with the same amount of metal. the Aztec empire collected taxes in cocoa beans. The earliest metal coins came from China. In South America. So people in China had the first idea for both coins and paper money. But there was also a lot of trade in China. In northern China. and Africa ( except for central Africa and South Africa). silver. and between China and the West. starting about 1400 AD. The governments that minted these coins figured out that if they didn't have enough money. most people have spent most of their time farming for the last ten thousand years. and some went along the northern Silk Road through Turkestan and Uzbekistan to the Persian Empire. In China. in West Asia. This kind of coin is marked with a promise by somebody (often a government) that this coin is worth what it says it is worth. So you don't have to weigh each coin before you accept it (if you trust that government). and then they didn't want to take those coins in stores. Anything small. Asia. When governments began to require people to pay their taxes in money. as in West Asia. and have more money to pay their soldiers with. Some of the traders went south to India. Mainly people shipped silk to the West. The Romans did this in the 200s AD. The first coins of this kind were from Lydia. in the same way. But many people preferred to keep on using mainly credit for trading instead. Coins with guarantees were invented around 650 BC.

under the Sung Dynasty.People first used cowrie shells for money in China as early as 1800 BC. Most of the men who worked in the mines were probably slaves. and then metal strings of beads called cash. . But there were definitely bronze coins in China by the 400s BC in the Chou Dynasty. Chinese paper money By about 1100 AD. We don't know whether the idea to make coins with writing on them guaranteed by the government came from Western Asia or not. In the Han Dynasty. people in China began running businesses digging deep pits to get salt to sell. Another important industry in China was mining. Then people used metal imitations of cowrie shells. people had begun to use paper money in China. under the Shang Dynasty.