bank time deposits savings queries

[satomoto]

Hi guys,

I am contemplating to open a bank account (without KITAS) in a bank for IDR savings.

It's more to diversify my savings so am not looking into putting alot of money, maybe 50 million IDR for time deposits.

Hopefully someone here can offer some advice

1. Which banks offer good rates
2. When I plan to withdraw my money out of Indonesia am I required to pay witholding/exit tax?
3. Are the 20% income tax automatically deducted and what if I don't have KITAS yet?

Thanks guys

 

[Smallworld]

I may be wrong but I think it would be difficult to open for you any bank account without kitas/kitap/ktp (letter from employer?, proof where you live like letter from head of rt/rw). It would depend maybe from the grace of the bank manager if he would be kind enough to open an account under your name.

The best rates are offered by small banks know as BPR but they are "a bit risky". For 50 jt. they won't give you any special VIP rates.

 

[dafluff]

Hi guys,

I am contemplating to open a bank account (without KITAS) in a bank for IDR savings.

It's more to diversify my savings so am not looking into putting alot of money, maybe 50 million IDR for time deposits.

Hopefully someone here can offer some advice

1. Which banks offer good rates
2. When I plan to withdraw my money out of Indonesia am I required to pay witholding/exit tax?
3. Are the 20% income tax automatically deducted and what if I don't have KITAS yet?

Thanks guys

Assuming you can open a bank account without KITAS:

1. You have to shop around. In general, the smaller the bank, the better the rate. Big banks like BCA are not going to give top interest rates. You should also check the Indonesian Deposit Insurance Company, which mandates the maximum interest rates allowed (link here). A BPR (Rural Bank) is allowed to give higher interest than a regular bank, but they often are quite basic in their services, and may have limited branches (most will actually just have 1 branch).

For large amounts (usually Rp 1 billion or more), you can usually negotiate better terms than the published rates. Usually you can receive gifts of electronics / cash back / gold on top of the interest.

2. No.

3. Automatically deducted, even without KITAS.

You can read more here: https://www.expatindo.org/banking-in-indonesia/#common-types-of-bank-accounts-in-indonesia

 

[Davita]

Without a Kitas your options of banks where you will be accepted is limited. Most of the International banks will not accept without a Kitas/P.

1. Rates vary all the time...here is a link to view....https://indonesia.deposits.org/
Bank Rakyats often offer rates above the Gov't Insured rates and may therefore not be insured.
2. There is no restriction to withdraw IDR, exchange or transfer. There may be restrictions on travelling with substantial amounts of cash.
3. 20% is automatically deducted by the bank on Fixed Deposits.

 

[satomoto]

Assuming you can open a bank account without KITAS:

1. You have to shop around. In general, the smaller the bank, the better the rate. Big banks like BCA are not going to give top interest rates. You should also check the Indonesian Deposit Insurance Company, which mandates the maximum interest rates allowed (link here). A BPR (Rural Bank) is allowed to give higher interest than a regular bank, but they often are quite basic in their services, and may have limited branches (most will actually just have 1 branch).

For large amounts (usually Rp 1 billion or more), you can usually negotiate better terms than the published rates. Usually you can receive gifts of electronics / cash back / gold on top of the interest.

2. No.

3. Automatically deducted, even without KITAS.

You can read more here: https://www.expatindo.org/banking-in-indonesia/#common-types-of-bank-accounts-in-indonesia

Thanks for the reply

Yea, it's always a little tricky to open without KITAS but I did find one that would.

For item 2. I would then be able to freely do a TT transfer using e-banking to my overseas account, say HSBC?

 

[satomoto]

Without a Kitas your options of banks where you will be accepted is limited. Most of the International banks will not accept without a Kitas/P.

1. Rates vary all the time...here is a link to view....https://indonesia.deposits.org/
Bank Rakyats often offer rates above the Gov't Insured rates and may therefore not be insured.
2. There is no restriction to withdraw IDR, exchange or transfer. There may be restrictions on travelling with substantial amounts of cash.
3. 20% is automatically deducted by the bank on Fixed Deposits.

Link is very useful. I guess value is "value asing"

 

[dafluff]

Thanks for the reply

Yea, it's always a little tricky to open without KITAS but I did find one that would.

For item 2. I would then be able to freely do a TT transfer using e-banking to my overseas account, say HSBC?

Most (all?) Indonesian banks require in branch visit for overseas transfer as far as I know. There are some currency controls in place, I think most recently set at USD 25,000 per month for transaction without an underlying letter (a proof/reason as to why the transaction is needed).

 

[kroshka]

I guess you will not be able to get more that 4% net pa for one month time deposit - when we speak about IDR 50 mio.

 

[Smallworld]

Thanks for the reply

Yea, it's always a little tricky to open without KITAS but I did find one that would.

For item 2. I would then be able to freely do a TT transfer using e-banking to my overseas account, say HSBC?

Is it not for HSBC premier members only? Is it not something like 500 jt. to become a premier member?
From what my HSBC manager told me global TT transfers are only for premier members free of charge.

 

[Davita]

Is it not for HSBC premier members only? Is it not something like 500 jt. to become a premier member?
From what my HSBC manager told me global TT transfers are only for premier members free of charge.

Not quite correct...all banks charge fees for Telegraph Transfers (TT).

HSBC Premium members can global internet transfer between HSBC accounts world-wide.... free of charge.
HSBC Indonesia Premier membership world-wide requires a minimum amount of 500 jt to be held in any account...if it goes below, for any substantial period, the Premier status is vacated until the 500 jt minimum is re-established.
I find it easier to keep a 500 jt Fixed Deposit (revolving every 3 months) to maintain my Premier world-wide status. The interest is credited to another account.

btw HSBC will not open an account in Indonesia without a Kitas/Kitap.

 

[satomoto]

Most (all?) Indonesian banks require in branch visit for overseas transfer as far as I know. There are some currency controls in place, I think most recently set at USD 25,000 per month for transaction without an underlying letter (a proof/reason as to why the transaction is needed).

Thanks.

Yea, I am fine with 25k USD per month restriction as long as I can do a TT from my e-banking to transfer to a foreign bank in a foreign currency when needed.

Certain countries put a lot of restriction when users(foreign or local) try to convert their local currencies to USD. They need you to present tax slip, proof of employment etc etc at the counter just to transfer any amount to overseas bank account.

 

[satomoto]

Is it not for HSBC premier members only? Is it not something like 500 jt. to become a premier member?
From what my HSBC manager told me global TT transfers are only for premier members free of charge.

I can live with TT being charged. It's about 10USD per transfer.

So long we can do TT without issue using e-banking. Say I moved back to my home country and want to TT out my funds slowly, I cannot imagine flying back to Indonesia to present a request at the counter to do that.

 

[Davita]

I'd think it prudent to only keep enough funds in Indonesia to cover one's expenses. Indonesia is still vulnerable to political instability and one never knows what would happen if an expat had to bail the country.
If I were planning to leave I'd empty and cancel my accounts prior to departure.

 

[satomoto]

I'd think it prudent to only keep enough funds in Indonesia to cover one's expenses. Indonesia is still vulnerable to political instability and one never knows what would happen if an expat had to bail the country.
If I were planning to leave I'd empty and cancel my accounts prior to departure.

Yea, maybe that's the prudent move. Still too many sudden policy enactment

 

[Asun]

Another option to easily transfer your IDR funds out is using CItibank. Their minimal deposit is only 50 jt to avoid monthly fees. Even though the transfer to another Citi account is free, they get their money back from less favourable exchange rate.

 

[snpark]

Open HSBC offshore in Isle of Man or Jersey then you can use any HSBC worldwide

 

[satomoto]

Open HSBC offshore in Isle of Man or Jersey then you can use any HSBC worldwide

Wonderful suggestions

Just given them a call and they'll have an answer in 72 hours. The ask some bits of pieces of info mainly what kinda business or whose your employer, but they are just interested in making you can fund the 60K GBP

 

[satomoto]

Another option to easily transfer your IDR funds out is using CItibank. Their minimal deposit is only 50 jt to avoid monthly fees. Even though the transfer to another Citi account is free, they get their money back from less favourable exchange rate.

Yea, an overseas bank seems to be the obvious answer. I called DB S and they said that I could do it without KITAS, their rate is ~6.25%. Well it' a little more complicated than that:

DEPOSITO LUCKY 88
*Tenor 3 bulan 500 juta saving 88 juta(lock 6 bulan)
rate 6.25% = 6.250.000
cashback = 4.550.000 (aktifasi atm & install digibank min transaksi 500rb)
total dana = 10.800.000
Total rate = 10.8%.

Here you go, feel free to enlighten us what's the real interest rates

 

[Davita]

Open HSBC offshore in Isle of Man or Jersey then you can use any HSBC worldwide

]
I'm all for forum members helping others but your information above, unless qualified, is absurd. Please elaborate.

 

[lifelongexpat]

Open HSBC offshore in Isle of Man or Jersey then you can use any HSBC worldwide

Offshore banks are very weary who they open accounts for these days both for individuals and especially corporations.

If you happen to be American, most offshore banks will refuse to set up an appointment in the first place.