Opening a corporate bank account is an essential step in doing business in Indonesia. It allows you to make payments to suppliers and employees, receive payments from clients, and manage your company’s financial operations. However, opening a business account in Indonesia comes with its own requirements and nuances. In this article, we’ll walk you through the key requirements, advantages, and disadvantages of working with Indonesian banks.
One of the main conditions for opening a bank account in Indonesia is having a locally registered company. This means a foreign company must register a legal entity in Indonesia before applying to open a business account. You can read more about the company registration process in this article.
In addition to company registration, the following are generally required:
1. Valid business licenses and permits
2. A company website
3. A physical office in Indonesia (not always required by all banks)
4. The physical presence of the company director at the bank branch for signing documents
5. Some banks may require a minimum paid-up capital
1. Corporate documents:
• Deed of Establishment
• Certificate of Registration from the Ministry of Law and Human Rights
• Business Identification Number (NIB)
• Company Tax ID (NPWP)
2. Director & shareholder documents:
• Passport copies
• Tax ID numbers from country of residence
• Proof of residential address
3. Office address confirmation (e.g., lease agreement or ownership certificate)
4. Additional documents (upon bank request):
• Financial statements from previous years
• Business plan or company profile
• Completed bank forms
1. Document collection – gather all required documents
2. Submission to the bank – the bank reviews and may request additional documentation
3. Director’s visit – the director signs documents in person at the bank
4. Account issuance – the bank opens the account and provides access credentials
5. Security token – used to authorize online banking transactions
1. Full remote account management
Most banks offer comprehensive internet banking, allowing remote transfers, currency exchange, and deposit management.
2. Low service and transaction fees
Indonesian banks offer competitive terms compared to other countries in the region. This applies to both annual service fees and domestic and international transfers.
3. Favorable currency exchange rates
Cross-currency transactions are carried out at preferential rates in a number of banks. This is particularly important for companies that make payments to foreign counterparties.
4. Flexible compliance and regulations
Operational control procedures comply with international standards, but offer a more flexible approach, especially when compared to banks in Europe and the US.
5. Premium corporate services
For corporate clients with large turnover, banks offer individual support, special conditions, and priority service through dedicated managers.
1. Communication difficulties
Without the support of a local consultant, interacting with the bank can be difficult: customer service often responds slowly, and the language of communication is mainly Indonesian. When unusual situations arise, it can be difficult to resolve issues remotely.
2. Early cut-off time
Most Indonesian banks process payments only until 3 p.m. Jakarta time. This can cause inconvenience for companies working with Europe. Some banks allow payment orders to be generated after 3 p.m., but the transfers themselves will only be executed on the next banking day.
3. Unintuitive online banking interface
Despite online access, the interface of many internet banking systems may be outdated and not very user-friendly, especially for users accustomed to Western digital solutions. Some functions may lack transparency or logic in navigation.
When choosing a bank to open an account for your business, you should consider the following factors:
1. Shareholders citizenship
Some banks may request additional information or refuse service if there are foreigners among the owners or directors. It is best to clarify the bank's policy regarding companies with foreign capital in advance.
2. Residence countries of your partners
If you conduct transactions with Chinese or European partners, for example, it is worth choosing a bank that has established connections and payment channels with the relevant regions. This will speed up transfers and reduce fees.
3. Supported currencies
Make sure that the bank supports the currencies you need: USD, EUR, CNY, and others. This is important for settlements with foreign partners and convenient work with multi-currency accounts.
4. English-language internet banking
For daily account management, it is important that the online banking interface is intuitive and supports English. This will greatly simplify your work, especially if your team does not include native speakers of Bahasa.
5. Bank size and market presence
Choosing a large bank with a high rating and a stable market position can provide additional guarantees of reliability and access to a wider range of financial services.
Opening a corporate bank account in Indonesia requires careful preparation and compliance with banking regulations. By following the steps outlined above, you can successfully set up your account and fully launch your business in the country.
If you're unsure about the local legal landscape, struggling to choose the right bank, or simply want to save time, our team at Good Luck Group is here to help. We’re based in Bali and have deep experience in the Indonesian business environment. Our experts will guide you through the process and help you avoid common mistakes. Get in touch with us — we offer personalized support at every stage!
