Transfer USD from Indonesia to Italy in Euros

giova73

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Hi guys, I am new here and I started my new job in Jakarta few weeks ago.
My company paid me in USD and I wondering which is the best and cheapest way to transfer money to my Italian account in Euro? My Italian bank doesn't have any branch here. Any advices? Thanks
 

jstar

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Of course you could always transfer directly to your IBAN account or use TransferWise for better rates and lower costs. There are quite some threads on the forum describing this.

But in your case perhaps you'd even get better rates if you open a EUR account with the same bank in Indonesia (e.g. BCA) where you have your USD account. Then you'd transfer from that account to your Italian euro account. Some banks as Citibank offer low cost or even free transactions between the accounts in multiple countries.

Now there is something else; since nine years or so, it is forbidden by law to make payments here which are not in rupiah. There are quite hefty fines in place and some exceptions, but a salary for a local employee is not one of them, unless it's an international transaction.
 

giova73

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Of course you could always transfer directly to your IBAN account or use TransferWise for better rates and lower costs. There are quite some threads on the forum describing this.

But in your case perhaps you'd even get better rates if you open a EUR account with the same bank in Indonesia (e.g. BCA) where you have your USD account. Then you'd transfer from that account to your Italian euro account. Some banks as Citibank offer low cost or even free transactions between the accounts in multiple countries.

Now there is something else; since nine years or so, it is forbidden by law to make payments here which are not in rupiah. There are quite hefty fines in place and some exceptions, but a salary for a local employee is not one of them, unless it's an international transaction.
Hi jstar, thanks for answering! At moment I do not have any bank account in Indonesia. They paid me cash...In my case the best what I can do is to open an bank account in Euro and then transfer? Citibank or HSBC which one have the best exchange rate?
 

snpark

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With your kitas and npwp go open a local bank account. Bca for domestic. Hsbc for international. Put ur salary in bca. Transfer some to hsbc free. Transfer from ur Hsbc rupiah to Italy EUR. It will arrive next day. Can do all that online. Easy.
 

snpark

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Why are you getting paid in cash? Do you have the correct legal work visa?
Any decent company would pay its staff by bank transfer and even assist an expat to open a bank account. Usually company and employees all bank with same bank.
 

giova73

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With your kitas and npwp go open a local bank account. Bca for domestic. Hsbc for international. Put ur salary in bca. Transfer some to hsbc free. Transfer from ur Hsbc rupiah to Italy EUR. It will arrive next day. Can do all that online. Easy.
So I have to open an Bca USD account?
Why are you getting paid in cash? Do you have the correct legal work visa?
Any decent company would pay its staff by bank transfer and even assist an expat to open a bank account. Usually company and employees all bank with same bank.
I have regular working visa. I don't know exactly why they paid me in USD but I guess because I have the agreement in USD. All expat working with me get payed cash in USD
 

jstar

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.
Wow.

If they keep on paying you in cash, I would change the money myself. Some in IDR and some in EUR. (Not very useful to open a USD account then.)

The best rates in Jakarta you'll get here: https://www.vip.co.id/en/

To keep it relatively simple: If you open two accounts at BCA (IDR and EUR) you have a debit card for your daily shopping and it's very easy to deposit rupiah at the ATM machines, The EUR you can deposit at the counter of the bank and you can transfer it to your Italian account at your own convenience.
.
 

giova73

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.
Wow.

If they keep on paying you in cash, I would change the money myself. Some in IDR and some in EUR. (Not very useful to open a USD account then.)

The best rates in Jakarta you'll get here: https://www.vip.co.id/en/

To keep it relatively simple: If you open two accounts at BCA (IDR and EUR) you have a debit card for your daily shopping and it's very easy to deposit rupiah at the ATM machines, The EUR you can deposit at the counter of the bank and you can transfer it to your Italian account at your own convenience.
.
Yes, they will continue to pay me cash till end of my contract. So I think is good idea to change money by myself....I will check out about vip I never hear about it....I guess is an Indonesian exchange service
 

giova73

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.
Wow.

If they keep on paying you in cash, I would change the money myself. Some in IDR and some in EUR. (Not very useful to open a USD account then.)

The best rates in Jakarta you'll get here: https://www.vip.co.id/en/

To keep it relatively simple: If you open two accounts at BCA (IDR and EUR) you have a debit card for your daily shopping and it's very easy to deposit rupiah at the ATM machines, The EUR you can deposit at the counter of the bank and you can transfer it to your Italian account at your own convenience.
.
Sorry one question....is BCA better than HSBC to do international wire transfer? I hear that HSBC had low fees....no? I could open an domestic account in BCA for my daily shopping and an HSBC for my international transfer? What you think? Worth?
 

snpark

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Ok as long as you are legal with kitas etc you can open account. Change your usd to IDR and deposit that in local bca
Hsbc best for int'l because fast cheap and online

Bca int'l must do in branch
I'd open IDR bca and IDR and EUR hsbc. Maybe usd also
 

giova73

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Ok as long as you are legal with kitas etc you can open account. Change your usd to IDR and deposit that in local bca
Hsbc best for int'l because fast cheap and online

Bca int'l must do in branch
I'd open IDR bca and IDR and EUR hsbc. Maybe usd also
Actually I no need to open an local account if I will change money by myself via VIP that jstar recommend.I could change my USD in Euro and some in IDR and I will transfer the Euro via HSBC bank and keep the IDR in my pocket
 

Helpful Herbert

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I believe you are required to have an NPWP to open a bank account usually, and your tax is paid via the NPWP. If you are paid in cash I'm guessing you don't have an NPWP and the issue of tax may, let's say, not have been considered yet?
 

Will_M

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I thought regulations in Indonesia meant all transactions had to be in IDR. Of course you could be paid in IDR and use exchange rate on each pay day.

I have BCA account and relatively easy to transfer to foreign accounts below 20,000 usd.
 

giova73

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I thought regulations in Indonesia meant all transactions had to be in IDR. Of course you could be paid in IDR and use exchange rate on each pay day.

I have BCA account and relatively easy to transfer to foreign accounts below 20,000 usd.
Ah...that means I have to convert all my salary from USD to IDR and then from IDR to Euro? Seems too complicated....
 

giova73

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I believe you are required to have an NPWP to open a bank account usually, and your tax is paid via the NPWP. If you are paid in cash I'm guessing you don't have an NPWP and the issue of tax may, let's say, not have been considered yet?
Yes, at moment I don't have the NPWP due I am arrived here on mid of February but my company already started the procedure to obtain it. I don't said I want open my bank account now but I just searching the info how to send money to my Country and once I get my NPWP I'll know what to do...I wanna be prepared.
 

snpark

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Well the advise is open a local account. Up to you. Bca is best. And u get a visa debit Atm card etc

Safer than a pocket
 

Will_M

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Ah...that means I have to convert all my salary from USD to IDR and then from IDR to Euro? Seems too complicated....

No, as far as I was aware your salary should be paid in IDR. Therefor you would only buy Euros once. Maybe different if your being paid in cash, I guess.
 

jstar

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UU 7 / 2011 pasal 21:

Rupiah wajib digunakan dalam:
a. setiap transaksi yang mempunyai tujuan pembayaran;
b. penyelesaian kewajiban lainnya yang harus dipenuhi dengan uang; dan/atau
c. transaksi keuangan lainnya,
yang dilakukan di Wilayah Negara Kesatuan Republik Indonesia.

Rough translation:

Rupiah must be used in:
a. all transactions with the purpose of payments;
b. other obligations which must be settled with money; and/or
c. other financial transactions,
which are carried out in the territory of the Republic of Indonesia.
 

BPNBound

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Would be interesting to know how many expats working for MNC are being paid in IDR?
 

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