International Money Transfer Policy: Indonesia

According to Google data, Indonesia is ‘APAC’s most valuable untapped e-money market’ where 66% of its population doesn’t own a bank account and only 11% of its e-money app users are regular users.

Regulation

Each financial asset has its own regulatory regime and regulatory supervisory body. Financial market products are subject to BI (Bank Indonesia) regulations and Financial Services Authority of Indonesia (OJK) regulations.

Regulation requires adding a supporting document detailing the purpose of a money transfer over $100,000. BI said that regulation was issued “to support more transparency regarding foreign exchange traffic”.

Also, Bank Indonesia works hard to make the rupiah currency less volatile. Importers buying overseas goods worth at least $10,000 will have to report their transactions to BI as of January this year.

In opened sources, no other restrictions by BI were found. For sending money to Indonesia, limits depend on the country where you are sending from and the payment method used to fund the transfer.

Bank wire fees

The bank fee is approximately 40 USD (a 25 USD charge from the bank-sender and a 15 USD charge from the recipient), similar to many other countries.

E-money service regulation

Many major legacy players in the banking sector (Bank Mandiri, Bank BCA and Bank BRI) and in the telecommunications sector have expanded their businesses to include e-money offerings to their broader customer base.

E-money is the first regulated FinTech activity in Indonesia. E-money accounts may only store a value of money not exceeding IDR2 million ($140; for unregistered users) or IDR10 million ($700; for registered users) and monthly transaction value is limited to IDR20 million ($1400). Such limitations do not apply to traditional payment instruments such as debit or credit cards.

The main foreign players in Indonesia are: STICPAY, MoneyGram, WesternUnion, Transferwise, others.

ATMs fees and limits

ATMs in Indonesia usually charge fees from 2 to 5 USD (you will probably get charged a fee by your own bank too).

Most Indonesian ATMs have withdrawal limits of 1,250,000 rupiah ($88; 50,000 note machines) or 3,000,000 rupiah ($210; 100,000 note machines) per transaction with a total maximum withdrawal of 6,000,000 rupiah ($420) a day.

Credit and prepaid debit cards

Most of the major national and international banks in Indonesia issue credit cards. Banks should only require a passport, proof of local residence, and temporary residency permit (ITAS), as well as evidence of sufficient income, in order to qualify for a credit card. Often the initial credit limit is set at a maximum of three times your monthly income, which can be increased over time after you prove your creditworthiness.

Most banks located in Indonesia issue prepaid cards. According to Tech In Asia media, the card can be used by anybody, and the banks usually collaborate with universities to integrate student ID cards into prepaid cards which can usually hold a maximum value of IDR 1 million (US$85). Examples of prepaid cards in Indonesia can be find here: https://www.techinasia.com/17-emoney-options-indonesia

Crypto

Under Ministry of Trade Regulation No 99 of 2018 on General Policy on Crypto Asset Trading, crypto-currency assets are recognized as commodities that can be traded on Indonesian futures exchanges.

The relevant crypto assets that can be traded will be determined by BAPPEBTI (Commodity Futures Trading Regulatory Agency). All crypto trading providers are required to register at BAPPEBTI and meet certain registration requirements (capital balance, etc).

Summary

There are some limits in Indonesia for money transfer you should remember:

• Regulation requires adding a supporting document detailing the purpose a money transfer of more than $100,000 out of country
• E-money accounts may only store a value of money not exceeding IDR2 million ($140; for unregistered users) or IDR10 million ($700; for registered users) and the monthly transaction value is limited to IDR20 million ($1400)
• Most Indonesian ATMs have withdrawal limits of 1,250,000 rupiah ($88; 50,000 note machines) or 3,000,000 rupiah ($210; 100,000 note machines) per transaction with a total daily maximum of 6,000,000 rupiah ($420) per day.
• Prepaid cards issued in Indonesia can usually hold a max. IDR 1 million (US$85)

Crypto-currency assets are deemed as commodities that can be traded on Indonesian futures exchanges.

STICPAY for Indonesia

STICPAY offers to open a local currency IDR account, with withdrawals from an e-wallet directly to a domestic bank account within 1–2 days and a prepaid STIC card.

Sources: 

ATM Travel Guide - ATMs In Indonesia - Fees, Withdrawal Limits & More…

JP Morgan - 2019 Global payments trends report – Indonesia Country Insights

Reuters - UPDATE 1-Indonesia's central bank orders importers to report FX for overseas purchases

Bank Indonesia Official Web Site - Bank Sentral Republik Indonesia

Transferwise - ATMs in Indonesia: Credit cards and fees

Think With Google - All eyes on e-money: The race to reach 180M unbanked Indonesians

Expat - Information on Banks and Banking for for Expats Living in Indonesia