How Can a Foreigner (Expat) Open a Foreign Currency Bank Account in Indonesia?

Indonesia’s Financial Services Authority (OJK) issued a new regulation that simplifies the opening of a foreign currency bank account by a foreign national (expat). A circular, S-246/S.01/2015 (dated 15 September 2015 and signed by OJK Chairman Muliaman D. Hadad), has been sent to all directors of Indonesian commercial banks that conduct business in foreign currencies. This new rule, part of the economic policy package that was released by the Indonesian government on 9 September, aims to boost foreign currency funds in Indonesia and support the rupiah.

Currently it is rather complicated for a foreigner to open a foreign currency (non-rupiah) bank account in Indonesia as he/she needs to show various documents, including a Temporary Residence Permit Card (Kitas).

Previously, OJK Chairman Hadad said other countries had already implemented such a rule successfully. The OJK, which regulates and supervises the country’s financial services sector, primarily targets those foreigners that frequently visit Indonesia for business or family purposes. This year a total of ten million foreign visitor arrivals are expected in Indonesia and approximately 20 percent of this total are frequent visitors. The OJK calculated that Indonesia could obtain an additional USD $24 billion in US dollar reserves if these frequent foreign visitors are allowed to easily deposit their foreign currencies in Indonesian bank accounts.

Besides boosting the country’s foreign exchange reserves, easier banking rules for foreigners may also result in higher foreign investment or a rising amount of foreign visitors.

Based on the circular, the following requirements have been set:

1. Limited Balance Tourist Account (USD $2,000 - USD $50,000)
- This account can be opened by an expat by simply showing his/her identity papers (passport)
- The minimum first deposit is USD $2,000 and the balance may not exceed USD $50,000
- If the balance is below USD $10,000 the bank imposes higher charges

2. Unlimited Balance Expat Account:
- To open this account the foreign national needs to show his/her passport and one additional document (for example, a reference document from a bank in their country of origin, domicile letter of the expat, identity papers of the expat’s spouse, copies of residence contracts, or a credit/debit card)
- A balance of more than USD $50,000 is allowed

3. Special Balance Expat Account (for large funds):
- To open this account the expat needs to show his/her passport and certain additional documents (mentioned in point 2 above)
- The balance needs to exceed USD $1 million
- The tax on interest on deposits is lower than the general tax rate, and is applied progressively (implying the higher the balance, the lower the tax rate)
- Only specific Indonesian banks that comply with certain risk management requirements and prudent banking are allowed to offer such bank accounts to expats.



source : https://www.indonesia-investments.com