Opening a bank account in Bali

[O]

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!

 

[Bert Vierstra]

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...

 

[LarsDK]

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.

 

[O]

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

 

[balimudder]

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.

 

[shebitme]

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

 

[LarsDK]

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

 

[iainsomers]

I still have a 50 mio time deposit running for another 2 months with 10%. 8)

 

[balimudder]

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

 

[FreoGirl]

Re: RE: Opening a bank account in Bali

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..

 

[spitfire]

Re: RE: Opening a bank account in Bali

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%... :idea: FreoGirl, looks like you are lucky.

 

[Guest]

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

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

 

[shebitme]

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?

 

[spitfire]

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.

 

[Guest]

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.

 

[FreoGirl]

Re: RE: Opening a bank account in Bali

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?

 

[Guest]

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?

Residency for tax purposes is not the same as residency for immigration purposes. In other words you may be a resident for tax purposes if you have a kitas and are working in Indonesia for longer than a given period (I think it's 90 days).

Once you are resident for tax purposes you should be able to request your bank to stop deducting withholding tax.

If withholding tax is deducted and you wish to have it refunded then you would have to submit a tax return in Indonesia or your own country if there is a tax treaty between the two countries (there is a tax treaty between Australia and Indonesia).

You don't need to be working to submit a tax return. If you have any income from any source (including bank interest) over the tax free limit you are supposed to submit a tax return. A lot of people don't and that's why withholding tax is collected at the source.

 

[Marcel]

Try Panin bank!!!! :idea: :idea:
Last I open a account over there with my business visa.
Now I have rp euro and us dollar account aswell.

Let me know if it work out for you

 

[Android]

I'm not sure where you are from, but I'm from the UK and I have some experience in this area.

I have a Nationwide building society account that I can use from most ATMs in Indonesia (and the rest of the world) free of charge - and they don't sting you on the exchange rate either. This could be a neat way to avoid a lot of complication and risk. Remember, you won't get the same protection and rights you enjoy in your home country. If an Indonesian bank fails, it can go down and take everyone's money with it. If you open a joint Nationwide account, you get two cards. Add internet banking to that, and you have a really quick and efficient way of transferring money to Indonesia (although not in the other direction).

Failing that, I would go for an international bank such as ABN Ambro or HSBC. These have branches all over the world but meet international finance standards. A much safer place for your money and they probably won't expect you to jump through as many hoops as they understand people can move around. It may be necessary to open an account in your own country first, but that could be useful anyway.

If, as a last resort, you do go for a local bank (assuming you get round the kitas problem), I would STRONGLY RECOMMEND YOU AVOID BCA. In my experience they are incompetent and opportunistic in the way they invent charges and withhold crucial information. Not good people to do business with. I've got on OK with BII, and am in the process of starting up with Mandiri. These seem OK, but they all seem to charge for things that are free in the UK. I'm only dealing with them because I am in business in Bali and need to accept credit cards. Otherwise I'd stick to Nationwide/HSBC.

Regarding the kitas problem. One solution would be to get a local to open an account on your behalf. Then keep the bank book and ATM card, and set up internet banking. The risk is that your "sponsor" could get into the account by going into the branch saying they've lost their card, etc. So this approach is not without risk.

Hope this helps.

 

[O]

Thanks for all your answers, I will try Panin Bank as I don't feel confortable opening a bank account through a third party. As for the transfert of money to buy land, someone told me that they had used the notaris account to hold the money until all the papers were signed, is that a common practice? I assume it means you'd have to have a notaris with a serious reputation before going that way.