JAKARTA (TheInsiderStories) - The Indonesian Financial Services Authority or OJK (Otoritas Jasa Keuangan), which oversees banking and financial institution sector, said it will in the near future issue ruling that will simplify procedures for foreign citizens to open foreign currency account in national banks.
Under the planned new regulation, a foreign citizen only needs to show its passport when opening a foreign currency bank account.
Under the existing ruling, a foreigner is required to show his or her valid passport as well as other supporting documents, such as temporary permit to stay, known as Kitas, and other documents as part of customer due diligent (CDD) principle.
This will apply to foreign citizens who are temporarily working in Indonesia or foreign tourists visiting the country.
The move is part of the Indonesian authorities’ move to increase supply of foreign currencies, including US dollar in national banking system, and therefore ease pressure on rupiah. The rupiah has fallen to above Rp14,000 to US dollar, one of the regional currencies that have recorded sharp falls in recent weeks.
“The new policy is in line and will support the policy of the government and Bank Indonesia. We will issue the regulation in near future. We have received approval from PPATK (Financial Transaction Reports and Analysis Centre) to simplify procedures for opening bank account for foreign citizens,” said Chairman of FSA Muliaman D. Hadad in a statement.
FSA said foreign visitors in the country are allowed to open foreign currency bank account with with minimum amount of $2,000 and maximum amount of $50,000. They are only required to show their passport in opening the account.
In the event that the foreigner wants to open bank account with unlimited value or above $50,000, he or she need to show one additional supporting document such as bank reference from home country or other documents such as domicile letter, personal identification of wife/husband, address or credit/debit card.
If the value of the savings or deposits bank account is above $1 million, the tax on deposits will be lowered than normal tax and will be applied progressively.
FSA noted that this planned new ruling will not applied to all banks. Only banks that are considered to have applied prudential principles will be allowed to apply this planned new ruling.
The above new ruling is part of the policy deregulations issued by the government, which is supported by Bank Indonesia and Financial Service Authority. (*)