Why so complicated to open bank account in Indonesia for foreigners

Tex Avery

Member
Joined
Nov 18, 2020
Messages
16
This is so bizarre. I have topped up OVO several hundred times at this point, and it has never been anything but instantaneous.

Yeah I figured it out and it's working now.

Indo isn't really good for payment infrastructure where payments are seamless. Lot of red tape and documents needed versus say the Philippines or even Vietnam where anyone can top up wallets or bank accounts.

Cashless is very important now since more and more places don't want to accept cash due to the virus. They will take a physical debit or credit card though. How odd.
 

HappyMan

Well-Known Member
Charter Member
Cager
Joined
Jul 17, 2016
Messages
651
Yeah I figured it out and it's working now.

Indo isn't really good for payment infrastructure where payments are seamless. Lot of red tape and documents needed versus say the Philippines or even Vietnam where anyone can top up wallets or bank accounts.

Cashless is very important now since more and more places don't want to accept cash due to the virus. They will take a physical debit or credit card though. How odd.
I haven't really gone out enough to experience much of the “no cash" problem.

I just dislike the business model of indefinitely holding my money against the chance that I might one day want to purchase something through one of the companies that use their services. If I don't want to let them hold a few million of my money, then on every purchase I just end up transferring money to the intermediary so that they can then immediately transfer it to the seller. And, they get to hold onto the difference between the round number and the actual price. I don't feel that I am receiving a benefit. I already have a bank.

It reminds me of those shopping mall food courts they have here where you need to buy a card in order to purchase anything. I am always left with 50k or something on the damned card, which the company takes as profit when I fail to return to that shopping mall. They created the problem they are "solving".It's just a crappy way to make money.
 

snpark

Well-Known Member
Cager
Joined
Sep 30, 2016
Messages
2,223
I use my credit card (BCA Kris Flyer Infinite) for everything even all apps, and carry a few million in dirty cash for tips in restaurants and such. Grab and so on you can tip digitally. So now I have a 10 page credit card statement with 9 pages of Grab 5,000rp on it but hey it all adds up and I get SG miles.
Pay your bill off in full with the cash you would have used anyway, and it is interest free and if you are smart, your own money is making you interest anyway as well.

Anyone who says credit cards are bad just doesn't understand how to use one efficiently.

But everyone has their own opinion.

 

centurion

Well-Known Member
Cager
Joined
Aug 20, 2016
Messages
620
Foreign pensions are taxed in Indonesia. There are some exclusion by double taxation treaties (usually that taxes paid abroad are just credit for Indonesian taxes; US has a special treatment that government pensions are excluded of tax, but private are not).

Basically, all foreign retirees with KITAS and KITAP that do not report their pension revenues are tax evaders in Indonesia if their pensions are above the tax reporting threshold.
 

snpark

Well-Known Member
Cager
Joined
Sep 30, 2016
Messages
2,223
Is it harder to rob a bank or knock out the Wi-Fi connection for a retailer? How many times does the card machine not work and they ask you "do you have cash" ?

Never once had someone say "ugh cash, no thanks. Do you have a card" ?
 

Ruserious

Well-Known Member
Joined
Aug 31, 2016
Messages
352
Anyone who says credit cards are bad just doesn't understand how to use one efficiently.

I agree credit cards are good but the video you posted is not valid as there is zero protection on credit cards in Indonesia. The example the guy used of someone stealing your number and charging a million to your card would be protected in USA but not in Indonesia and you are liable for all transactions up until you report them, which obviously you cannot do before losing some money. They have safety mechanisms in place but in my experience (HSBC) they only work to stop you when you need to buy something overseas but not when someone is charging 100k x 100times at a petrol station in bogor to your card.

Things are getting better with pin numbers and sms so hopefully pretty soon credit cards will not work at all unless the pin number is entered. The old manual way needs to go.
 

Dharma Police

Active Member
Joined
Feb 6, 2021
Messages
92
I agree credit cards are good but the video you posted is not valid as there is zero protection on credit cards in Indonesia. The example the guy used of someone stealing your number and charging a million to your card would be protected in USA but not in Indonesia and you are liable for all transactions up until you report them, which obviously you cannot do before losing some money. They have safety mechanisms in place but in my experience (HSBC) they only work to stop you when you need to buy something overseas but not when someone is charging 100k x 100times at a petrol station in bogor to your card.

Things are getting better with pin numbers and sms so hopefully pretty soon credit cards will not work at all unless the pin number is entered. The old manual way needs to go.
I learned this the hard way. Now 6 juta wasn't going to put me in the poor house, but it was a frustrating ordeal talking to BCA. Basically I had no say in it. How convenient for the bank. According to them it's possible that I went around putting petrol into several cars at 8 different pump stations.

When I got my card stolen in Los Angeles, the $300 charged by the thief was reimbursed, no questions asked. Granted, it was the only time that happened to me, but that was a professional way to treat a longtime customer.
 

Vulgarian

Well-Known Member
Joined
Nov 23, 2017
Messages
104
Never once had someone say "ugh cash, no thanks. Do you have a card" ?
It's coming. I don't know if you've been to China semi-recently, but everyone pays through their phones there. As a foreign visitor, I didn't have access to this this, so had to try and pay in cash. They looked at me like I had two heads - especially if I needed change.
 

Tex Avery

Member
Joined
Nov 18, 2020
Messages
16
Is it harder to rob a bank or knock out the Wi-Fi connection for a retailer? How many times does the card machine not work and they ask you "do you have cash" ?

Never once had someone say "ugh cash, no thanks. Do you have a card" ?

The policy just isn't logical. Indos think somehow you can't spread this ridiculous disease with a plastic bank card, but they shun cash. Mostly at the big malls.

I've seen people here just take out this 3jt cash wad and start rubbing it down with sanitizer. Incredibly intelligent people.
 

snpark

Well-Known Member
Cager
Joined
Sep 30, 2016
Messages
2,223
Yes cash literally is filthy I agree, wash your hands, count 1jt then wash them again and see black they are
Off topic but one of my quirks was getting the warm brand new notes from the bank counter or atm then not wanting to use them, it became my way of saving money, if I have to buy it I have to use my new notes, of course I ended back at the ATM withdrawing cash again but hoping it was old dirty notes, until eventually I realised I had about 5jt in my pocket in brand new consecutive 100's so would put it back in my account thinking how good I was to have saved up 5jt hahahaha
 

Helpful Herbert

Well-Known Member
Joined
Mar 24, 2019
Messages
591
It's coming. I don't know if you've been to China semi-recently, but everyone pays through their phones there. As a foreign visitor, I didn't have access to this this, so had to try and pay in cash. They looked at me like I had two heads - especially if I needed change.
It happened to me in my local Starbucks in Jakarta. No purchases below 50k and no cash accepted. I just wanted to buy a cappucino so I couldn't and went to the other coffee shop 20 metres away, which is now where I always go.
 

Follow Us

Latest Expat Indo Articles

Latest Activity

New posts Latest threads

Latest Tweets by Expat Indo

Online Now

Newest Members

Forum Statistics

Threads
4,870
Messages
74,586
Members
2,185
Latest member
Huby
Top Bottom