Why so complicated to open bank account in Indonesia for foreigners

[Puspawarna]

Nationality matters with respect to being American or not. A few years ago, the US put some reporting requirements in place that banks around the world have to adhere to when they have American customers (don't ask me how they did that, I am fortunate enough not to need to understand the fine details). The idea was to avoid tax dodging by Americans hiding money abroad.

So no international bank wants American customers because the administrative requirements are a PITA. Nothing to do with Indonesia; it's the same everywhere.

Maybe someone who understands more clearly than I do can explain in more detail - but that's the gist of it.

 

[snpark]

Maybe they just don't want Qatari customers

 

[El_Goretto]

I've opened a bank account at BCA under my name a couple weeks ago and it went smoothly. Just KITAS, Passport and NPWP (Tax ID).

I even got a Mastercard debit card to be used online and overseas.

I wonder why they're giving you a hard time @iihamm?

 

[centurion]

Indonesian banks have lists of risky countries-these lists are often outdated and wider than FATF lists. Maybe Qatar is on the list, but QNB should not make problems then.

 

[snpark]

He is Arab and they are racist here ironically

 

[centurion]

Yes by QNB is Qatar National Bank. Btw, people here adore Arabs.

 

[snpark]

Yes by QNB is Qatar National Bank. Btw, people here adore Arabs.

Not in BCA apparently

 

[Banana72]

Opened a bank account with BCA no problems a few years ago. Even before I had my NPWP number. No issues at all, brilliant service really.

Yep. Same here, no NPWP needed at that time, although I think my father had to sign some kind of 'surat pertanggungan jawab' a formality that he is my guarantor. That was about 10 years ago...

Maybank I also managed to open one...and I think they just inherited an archaic system and SOP along with long time employees from BII...although the supposedly new-and-improved system from Maybank itself isn't that much better. When it comes to deposito, rate-wise, they're better than BCA though.

Basically...BCA for main bank/simplicity since everybody uses it...for better return on idle money, use 2nd tier bank, at least for me.

 

[Tex Avery]

Noticed that Indo isn't a user friendly country for banking or business either without huge bureaucracy or using a 2nd tier bank like Permata / HSBC.

You also have bad payment infrastructure where it takes you forever and a day to top up OVO, linkaja or any digital wallet.

 

[dafluff]

You also have bad payment infrastructure where it takes you forever and a day to top up OVO, linkaja or any digital wallet.

This is so bizarre. I have topped up OVO several hundred times at this point, and it has never been anything but instantaneous.

 

[snpark]

I concur
I've never yet had a problem with any of these online instant apps or fraud or delays

 

[HappyMan]

I am annoyed by all the payment and shopping apps I've tried, but they all work.

 

[Ruserious]

You also have bad payment infrastructure where it takes you forever and a day to top up OVO, linkaja or any digital wallet.

I don't think I've seen a single post from TexAvery that is correct. From renting property to food delivery and now on digital wallets. I use Ovo and gopay and both top up instantly. Less than a second and transfer between Ovo accounts is the same.

 

[fastpitch17]

My OVO, Gopay, and Linkaja are instant. Always have been.

 

[yantiharun1]

Bolox. It is perfectly simple if you have the correct documents which is a valid passport and correct legal kitas and also usually now an npwp tax id
Have all those things and you can walk out of any bank 30 mins later with a bank book, internet banking, phone banking and a visa atm debit card that works internationally - if you want with your name on it as well that takes 3-5 days longer

It is very simple. Suggest you open a BCA account it is the best for online banking with klikbca and the app is very good and of course the most branches atms etc and you get a platinum visa debit card works all round the world
Open HSBC if you want to send receive internationally. Their app is also good for domestic and they have an account that pays 3.5% for 5jt only

How do you obtain NPWP tax id? Is that means that you have to pay Indonesian tax?

 

[snpark]

How do you obtain NPWP tax id? Is that means that you have to pay Indonesian tax?

Yes of course, if you are working here you pay tax right? Even retired people are supposed to declare a minimum income to retire here, and you need a NPWP and tax ID usually to get credit here, like a credit card. They would be suspicious if you applied for an IMTA and KITAS and then did not pay ANY tax?
As such there is a minimum you are supposed to declare - a director of a PT is supposed to earn a minimum of $2,500 a month and pay 10% tax - $250 a month.
With a tax number you then pay less tax on your bank account interest - well at least with HSBC you do anyway - I get taxed 10% instead of 20% on my savings (I mean on the interest I receive)

 

[R Cameron]

As such there is a minimum you are supposed to declare - a director of a PT is supposed to earn a minimum of $2,500 a month and pay 10% tax - $250 a month.

Do you have a source for this? Whether local PT director or especially if specifically a foreign director? Are you citing an actual law, or simply common expectation? That would be 36 juta per month, not uncommon, but I would be surprised to see that it is the legal minimum.

And where do you get 10% tax? Indonesia doesn't have a 10% tax bracket. At 36 jt per month the director would make 468 jt per year (with THR), only a small amount would be taxed at 5%, and most would be taxed in 15% and 25% tax brackets.

 

[centurion]

@snpark
There is no such regulation (and if you have please share) and tax on 2500 USD salary is already in the 25% tax bracket, withs BPJS almost 30%. If you are living here you are in the worldwide income system of taxation. Are you reporting all your worldwide incomes?

 

[fastpitch17]

Back when they were pushing the NPWP and signing up for it during the last Tax Amnesty I went to the tax office and they told me no need to sign up with just social security. So, I have no NPWP number or card since they said it wasn't needed.

 

[snpark]

Well that is my personal set up here with the tax office and immigration etc for many years.
I am a Director of a PT here and I declare that as my salary and pay $3000 a year to the tax people but obviously my income is a lot more but that is what I "declare" and I use offshore banks for other income and some clients even pay me cash. I've never yet had any problems regarding my immigration status or income / salary / tax etc and I have a npwp and get paperwork every year from customs / tax people in the dreaded brown envelope. I pay my tax the same time I renew my kitas. I remember years ago my agent sent me / showed me some paperwork from tax office about min salary requirements for director / imta etc.

That's my personal situation and circumstances so maybe it has changed now.
I will ask her for a link but that's what I declare and pay and they seem happy with that despite even a cursory look at my bank statements would show I earn more than that.

Tax on interest earned (with Hsbc) is 20% but if you have npwp then you pay only 10% (they credit it back)

I'm single no kids on a normal kitas imta local company PT etc.