How to Open Corporate Bank Account in Indonesia

The Need for Entrepreneurs to Open Corporate Bank Account

Businesses basically revolve on making money. But how do they actually make sure that the hard-earned money they accumulate from doing business is properly accounted for and kept in a place with a guarantee of safety?

The answer: Open corporate bank account.

Doing business in Indonesia is something that has been addressed by its government, which imposes lax measures seen to attract both local and foreign companies to invest.
Aside from the business-friendly policy, Indonesia has also been able to maintain the integrity of its banking system, which offers business companies protection against fraud.

 

Government Policy on Corporate Bank Accounts

Prior to 2015, opening a corporate bank account in Indonesia considered a tall order among many requirements.

With difficulties for businessmen to open corporate bank account, Indonesia’s Ministry of Finance imposed regulatory changes in September 2015. This eases the tedious process to open corporate bank account.

Interestingly, the imposition of the measure easing bureaucratic layers for companies wanting to open corporate bank account forms part of Indonesia’s government reform package. Such regulation has simplified multilayered bureaucratic processes.

Just like hosting foreign investments in other countries, entrepreneurs have to deal with opening a corporate bank account.

 

Corporate Bank Account for Foreign-Owned Company: Requirements

For foreign-owned companies or PT PMA, to be able to open a corporate bank account largely depends on the bank where an entrepreneur would want to entrust their money.
Each and every bank embarks on its own banking policies and checklists.
The process of opening a corporate bank account in Indonesia requires a presentation to the bank of choice, but only after being registered as PT PMA.

What do banks normally ask? Here are the basic requirements:

• Copy of PT Tax card (NPWP)
• Copy of PT Domicile letter
• A copy of BKPM Investment registration Letter (SIUP)
• Copy of Deed of Establishment (AKTA)
• Copy of ID card of all board of directors, shareholders, and authorized signers
• A copy of Company registration letter (TDP)
• Copy of PT deed of establishment’s approval from Ministry of Law and Human Rights (Pengesahan KEPMENHUMHAM)

 

Other Instances

Interestingly, there are several Indonesian banking institutions that allow entrepreneurs to commence the process of opening a corporate bank account midway of the registration of a foreign-owned company.

Under this circumstance, the banking institution requires a stiffer checklist of requirements:

• Copy of PT Tax card (NPWP)
• Copy of PT Domicile letter
• A copy of BKPM Investment registration Letter (SIUP)
• Copy of Deed of Establishment (AKTA)
• Copy of ID card of all the members of board of directors, shareholders, and authorized signing authorities
• Letter of Attorney from all shareholders, board of directors and all commissioners to all authorized signing authorities. Shareholders, board of directors and commissioners are also required to affix their signatures on every page of the documents pertinent to opening the corporate bank account.
• Duly notarized Cover letter hinting that the approval of the company deed of establishment still in the progress at the Ministry of Law and Human Rights

It is important to take note that these documents should be submitted or presented to the bank within 30 days from the date the application for registration as a foreign-owned company was filed.

• PT deed of establishment’s approval from the Ministry of Law and Human Rights (KEPMENHUMHAM)
• BKPM Investment registration letter (SIUP)
• Copy of company registration letter (TDP)

Oddly, though, while most of the banks in Indonesia consider the aforementioned checklist to be able to open a corporate bank account as general requirements, there are few banking institutions embarking on other specific requirements.

 

Stiffer Checklist, Safer Deposits

The logic behind the stiffness could be attributed to the Indonesian government’s effort to ensure that investors’ trust to deposit their hard-earned money in their banks is given due diligence and care.

Most of the banks in Indonesia are sharing a small market share and niche financial products.

The bigger banks, embarking on huge funds are stable. In fact, even under recession, these bigger banks have remained robust and could handily absorb losses.

 

Biggest Banks in Indonesia

• Bank Mandiri-Sebagai-Bank-Terbaik-di-Indonesia — Mandiri is an offshoot of the 1997-1998 Asian Financial Crisis (AFC). The crisis had hit hard it created a variety of smaller banks. The government fused four banks requiring state bailouts.
• Bank BRI2 – BRI2, a State-owned and operated banking institution, founded in 1895 as Priyayi Bank of Purwokerto. The bank name changed, back in 1946. Four years later, the state took over it. Bank BRI2 gained its prominence for establishing rural banks in the 1970s. Thus, it has earned a reputation for promoting microfinance and loans to small and medium-sized companies.
• Bank-Klik BCA – Indonesia’s third-largest bank by assets and biggest by market value. Interestingly, Bank-Klik also had its shares of ups and downs. Back in 1997, Bank-Klik came under public control resulting from the Asian Financial Crisis. For the second time, it’s able to recover and privatized.

 

Indonesia has hundreds of banks, so finding the best financial hub to open a corporate bank account won’t be that easy. However, with the help of a business advisor with a proven track record of excellence in the services for Incorporation and corporate bank opening in Indonesia, It’s best if you find one that best suits your business.

We at 3E Accounting would be glad to help you find an ideal place and arrangement to benefit your business for as long as you deem it convenient. Feel free to contact us.