Indonesia has one of the most stable economies in the Southeast Asian region with a 5.06% GDP growth in the 1st quarter of 2018 (Indonesia Investment). This is due to the strengthening of commodity prices which boosted the country’s export performance, and the government projects and policies which aims to attract more foreign direct investment.
In fact, the central government unveiled a simplified tax holiday for investors in target industries such as maritime transport and telecommunications. According to Suahasil Nazara, head of the ministry’s fiscal policy office, a company can apply for this income tax break when it requests for an investment permit [Jakarta Globe]. The tax relief can range from 10% up to 100% income tax reduction for a maximum of 15 years. This results in many entrepreneurs expanding their business operations in this country.
As a savvy business owner, why now is the best time to invest in this country? Find out more on this blog about Indonesia’s current corporate environment.
A More Business-Oriented National Corporate Policy
Currently, Indonesia is one of the world’s top policy reformers when it comes to improving its the business environment. Policies, which include the reduced cost of start-up fees, faster credit access, and better rights for company minority shareholders, were implemented to boost its economy. Its aim is to make it easier for business owners to establish their companies and conduct direct foreign investment.
However, foreign entrepreneurs are also required to open an account with a bank licensed to handle foreign currencies. So, what are the requirements for opening a foreign-owned bank account in Indonesia?
Opening a Foreign-Owned Bank Account in Indonesia
Indonesia’s Central Bank mandates that all newly established, foreign corporate entities must fulfil several statutory files. Here are some of the requirements:
- BKPM Initial Investment Approval
- Company Deed of Establishment
- ID/ Passport and KIMS/ Permit of Authorized Officer
- Tax Registration Number, Business License, and Certificate of Incorporation
- Identifying the Type of Bank Account
- List of Incumbent Company Director and Commissioners
- Statutory Documents in English accompanied by a certified true Bahasa Indonesia Translation
- Memorandum or Article of Association
- Photo and information of the authorized person to open a bank account
- Minimum deposits vary on the company’s size and the banking establishment
Additionally, some banks may have other requirements. Fulfilling all of these documents take time and can incur penalties if filed incorrectly.
Treading through your Bank Account Process
Needing to comply with local corporate laws in Indonesia, such as opening a bank account is required. However, the administrative and inquiry process of opening a bank account can be long and arduous.
Seeking a professional company service provider for help can be the best option for aiding and guiding you through the proper bank account opening procedures.
If you are interested, you can contact us.
References:
Indonesian Economy: GDP Grows 5.06% in Q1-2018, in Line with Estimate, indonesia-investments.com
Indonesia continues strong pace of reforms to improve business climate: Doing Business, worldbank.org
Opening a bank account in Indonesia, cekindo.com
Indonesia Account opening requirements [PDF], baml.bankofamerica.com
