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There are many ways, either online or offline, to transfer money to Indonesia from abroad and the other way around. Money transfers are services provided by a bank or a licensed money transfer service provider.
Everyone can do money transfers for many purposes. For example, if you are a migrant worker, you can wire money to your relatives in a different country. Also, if you have a business involving the international market, you can make instant transactions to conclude customers' payments.
The following article will explain the ways of money transferring to Indonesia from overseas and vice versa. It is better not to skip the beneficial information below!
Transfer Money to Indonesia: How to Transfer Money Online to Indonesia?
According to Otoritas Jasa Keuangan (OJK) Indonesia, or Financial Services Authority, there are 3 official channels of money transferring to Indonesia from abroad and vice versa.
OJK refers to this service as a remittance. A money transfer service carried out by Indonesian senders to recipients abroad (Outward Remittance) and foreign senders to Indonesian recipients (Inward Remittance).
However, a remittance can be in the form of transfers to a bank account or cash. It can be done at these places:
1. Bank
This refers to a general bank, either a national bank or a private bank, that offers remittance services.
2. Money Transfer Service Provider
This refers to a business entity with an approved license from the local authority that offers money transfer services.
3. Post Offices
Post offices in Indonesia provide money transfer services to and from overseas. In addition, the money can be deposited into the recipient's bank account.
The process may be instant (real-time online) or take up to 3 days depending on the provisions of the destined bank or money transfer service provider.
However, there is a foreign exchange money transfer transaction limit for an Indonesian customer, equivalent to IDR 100,000,000 per month. If a customer wants to transfer money to Indonesia exceeding the limit, they must submit supporting documents called underlying.
The Steps in Sending Money
Using the ways above typically involves 4 steps. Below is the explanation of each step you can follow:
1. Making Transactions
The sender abroad makes transactions at a licensed bank or money transfer service provider. The payment can be made using cash, credit card, debit card, check, or an online debit transaction.
If you want to wire the money to a bank account, don’t forget to provide the basic information about the recipient's bank name, bank account number, and routing number. In addition, you must provide information about the recipient's name, address, and telephone numbers.
While doing transfer money to Indonesia, do not give the information about the recipient's Personal Identification Number (PIN) or reference number if you want to send the money in cash.
2. Paying Additional Fees
You should pay the incurred fees of transactions and commissions.
3. Proofing
You can ask for proof of a valid transaction in the unlikely chance of a problem.
4. Contacting Recipient
You can contact the recipient after the service provider concludes the payment or transaction to ensure that the money has been received.
How to Transfer Money from Singapore to Indonesia?
You can follow the steps below if you want to use an electronic money transfer service provider to transfer money to Indonesia.
1. Register
Visit the service provider's official website and create an account. The registration process is usually free.
2. Fill Personal Data
During the Sign-Up, enter your personal data according to your identification card.
3. Attach ID Card
Upload your identification card to ensure that the data is correct.
4. Wait for The Verification
Wait for the verification process. It may take seconds to several minutes.
5. Complete The Data
After the verification process, complete the account details by filling in the data about the recipient's bank account number.
6. Fill Money Amount
Enter the amount of money in Singapore dollars (SGD) that you want to transfer.
7. Proofing
Attach the proof of residential address or checking account. If the process is valid, the service provider will notify you via email.
How to Transfer Money from HK to Indonesia?
You can follow the steps below if you want to use an electronic money transfer service provider to transfer money to Indonesia.
1. Register
Visit the service provider's official website and create an account. The registration process is usually free.
2. Fill Personal Data
During the Sign-Up, enter your personal data according to your identification card.
3. Attach ID Card
Upload your identification card to ensure that the data is correct.
4. Wait for The Verification
Wait for the verification process. It may take seconds to several minutes.
5. Complete The Data
After the verification process, complete the account details by filling in the data about the recipient's bank account number.
6. Fill Money Amount
Enter the amount of money in Hong Kong dollars (HKD) that you want to transfer.
7. Proofing
Attach the proof of residential address or checking account. If the process is valid, the service provider will notify you via email.
The Cheapest Money Transfer to Indonesia
Compared to using bank transfers or remittances, wiring money via an electronic money transfer service provider is way cheaper than using bank transfers or remittances. There are several electronic money transfer services in the world.
Each has its regulations regarding the process, the amount of money, and fees. You can transfer money to Indonesia using Remittance Applications or Fintech Payments with a license from the local authority.
In choosing the best service provider, you must consider your overall budget and the service provider's regulations related to cost transparency, time for money delivery, and security. Some providers require a transaction fee and commission fee.
A transaction fee refers to the price of using money transfer services. Meanwhile, a commission fee relates to the costs of buying and selling foreign currencies in a transaction. Thus, the recipient might not receive all the money you send through the provider.
You can use a website that provides a service for comparing the performance of many electronic money transfer services. You can analyze the difference between money transfer providers sending a more minor or considerable amount of money to the recipient's country.
For example, with Faspay services, you can instantly transfer money to e-wallets, and national or private banks in Indonesia. One of the Faspay features, Faspay SendMe, allows you to transfer money from one or multiple accounts to several e-money platforms and over 150 banks in Indonesia.
You can embed Faspay API into your website as an online business owner. Then, you can process multiple transactions with your local and international customers.
There are 3 ways for you to transfer money to Indonesia from abroad. You can use a bank, electronic money transfer service provider, or post office. The cheapest way to transfer money is using the most suitable money transfer service provider. Don’t forget to check the provider’s regulations about money transactions!
