Bali Expat Forum - Bali Travel Forum

Hi everybody,
I've recently returned to Indonesia with the specific purpose of finding the perfect piece of land to park my books and rest my mind. This forum has already provided me with a lot of precious information on dos and don't, thanks to all members for their various posts. One thing I haven't seen -maybe I just missed it- is information on how to open a bank account. I have talked to various banks both in Bali and in Jakarta and they are all telling me that I need a Kitas in order to open an account at their branch. I'm here with a social budaya. Any tips on how to get around this? Thanks!

Did you try Mandiri too?

I know a social budaya guy who has opened an account there once, but maybe they changed their rules too...

I got one at BII. And I was just in the country on a tourist visa. I did have to supply a local address though, but I just used the address of some of our friends living in Bali. Rules can have changed since then of course. I got it maybe 4 or 5 years ago.

I did try these two banks and apparently rules changed in 2004.

I tried to open an account at BCA and BII and was told that I needed a KITAS. My indonesian wife opened one up and I deposit in it. If more than 100 million rupiah is deposited at one time, the owner of the account will have to go to the main branch in Denpasar and fill out a form stating where it came from.

An account can be opened by anyone, apparently someone you trust, locally. And another thing, this is a rupiah only account. If you deposit other denominations they will be exhanged for rupiah.

Does anyone know what sort of interest rates are available for term deposits in indonesian Banks.

Here you can see the interest rates of BCA:

http://www.klikbca.com/individual/silve ... s.html?s=2

That should give you an idea of what to expect.

It's amazing how fast the interest rate has dropped. I think it is no more than a year ago where you could get about 11% return on term deposits

I still have a 50 mio time deposit running for another 2 months with 10%.

Another thing is that 20% of the interest earned goes to the government.

balimudder wrote:Another thing is that 20% of the interest earned goes to the government.

Do you mean as a tax? Our BCA account gets the Bunga every month, but I didn't see any come out..

FreoGirl wrote:

balimudder wrote:Another thing is that 20% of the interest earned goes to the government.

Do you mean as a tax? Our BCA account gets the Bunga every month, but I didn't see any come out..

Now I understand! I also get "bunga" and a "pajak bunga" every month. It's exactly 20%... FreoGirl, looks like you are lucky.

Interest income for non residents is subject to 20% withholding tax.

Withholding tax can be credited against tax payable in your annual return.

Thanks for that info re interest rates, as well as tax. Probably a little disappointing to be honest. We are a also looking at the best way to transfer largish $$$'s for building a house, and have been having discussions with Custom House Currency Exchange. It looks pretty easy and cost effective.

Does anyone have any advice on how to transfer money?

You can use an escrow account through a law office. I know Kantor Kita in Sanur can provide this. Once it's in that account you can withdraw it in cash or make local transfers.

Once you have an account a cost effective and efficient way of transferring money is by using you bank's internet banking facilities.

For example the Commonwealth Bank offers overseas transfers using NetBank at a standard flat rate of $22. Exchange is usually at the TT (telegraphic transfer) Buy Rate.

For large amounts you may need to increase your transfer limit beforehand.

Allan wrote:Interest income for non residents is subject to 20% withholding tax.

Withholding tax can be credited against tax payable in your annual return.

I still don't get it - you need to be a resident to have an account don't you? ie the requirement these days of having a Kitas to open an account.

Also, doesn't that assume you are working and have tax returns?