In recent years, the Indonesian government made significant efforts to boost the country’s business environment. The country’s consumer-centric Deregulation Packages had already encouraged several foreign businesses to invest in the nation [Europa].
Additionally, the government’s push towards improving the country’s trade relations with Brazil, promoting a fair trade agreement with Norway, and the country’s focus on macroprudential regulation contribute towards a more competitive business landscape [Jakarta Globe].
These recent developments enhanced the investor’s confidence in the country. But, before entrepreneurs and investors can operate in this country, they must first open a bank account. So, for interested business owners looking to begin their operations, discover more on this blog on how to open a bank account as a foreign national.
A Bank’s Role in Business and Investing in Indonesia
Banks in Indonesia are expected to operate based on prudential principle [Banking Institution in Indonesia]. This means that these institutions are authorised to take customer deposits and help raise capital from investors. Individuals and representatives of corporate entities can apply to open a bank account fit for their needs. Some banks can offer bank accounts for business entities of varying sizes thus, enhancing their range of investments.
Aside from creating deposit accounts, these establishments can also provide business loans for both local and foreign entrepreneurs and investment services. Bank employees can guide the customer in the selection of stocks, bonds, and other investments. They can also offer corporate credit cards to businesses which can help entrepreneurs keep track of their company purchases.
Additionally, some banks also provide several financial services depending on the needs of the client. But, before an entrepreneur can avail of these services and venture in Indonesia, they must first open a bank company account.
Steps for Opening a Foreign-owned Bank Account
Indonesia’s frequent corporate updates improve the current business environment which attracts many foreign direct investments. But, before business owners can operate their companies in this country, they must first have a verified company bank account.
Here are a few steps in opening a foreign-owned corporate bank account.
Establish a PT PMA
Foreign business owners operating need to establish a Perseroan Terbatas Penanaman Modal Asing or PT PMA. This limited liability company will allow foreign entrepreneurs to start doing business in Indonesia.
This will allow the businessperson to apply for a business licence, participate in all tenders in Indonesia, and open a corporate bank account. It can also allow the company directors to provide a business visa, work permit (IMTA), and stay permit (KITAS).
Find the Right Banking Institution
Offshore company owners and investors have different banking needs. Therefore, they must first identify what type of bank account they require and then find the right banking establishment for the company’s size.
Have a Legal Representative
Most banking establishments require entrepreneurs to have a legal and verifiable representative when opening a company bank account. In addition, business owners may need to provide the company’s article of association and an initial investment approval from the BKPM.
These are just some of the necessary documents needed to open a foreign-owned corporate bank account in Indonesia. Certain institutions may require additional files before they approve of the company bank account.
Due to these extensive requirements, entrepreneurs are advised to seek advisory solutions from corporate service providers before opening a bank account in the country. They can offer corporate service solutions which can help both local and foreign business owners open a bank account in this country.
Get Advisory Solutions from Corporate Service Agencies
Company service providers can help guide the entrepreneur find the right banking institution for their business. They can guide the entrepreneur regarding the requirements and for opening a foreign-owned company bank account.
Afterwards, they can offer the several company service solutions which can help the business operate in the country. This includes creating an effective business strategy, executive hiring solutions, and accounting services. They can also update the business owner regarding the latest changes in the Indonesian corporate policies. Hence, it will ensure that the business operates within the country’s corporate guidelines.
So, get advisory solutions from reliable corporate service providers before setting up a foreign-owned bank account in Indonesia.
Indonesian Stocks Soar, Bank Indonesia Inaugurates New Governor, indonesia-investments.com
Kadin Sets Up Committee to Boost Trade Ties Between Indonesia, Brazil, jakartaglobe.id
Indonesia Investment And Economic Outlook 2018 [PDF], eeas.europa.eu
Further reforms to spur trade and investment key for Brazil’s inclusive growth, oecd.org