Bank account regulations for companies in Indonesia define the legal requirements that govern how businesses open, operate, and maintain corporate bank accounts under Indonesian law. These regulations directly affect business licensing, tax registration, capital compliance, and investment legitimacy for both domestic and foreign-owned entities. Indonesian banks function as regulatory enforcement points by applying rules issued by the Financial Services Authority (OJK), investment data from BKPM, and licensing validation through the OSS-RBA system. Companies without an approved legal entity, Business Identification Number (NIB), Tax Identification Number (NPWP), and verified investment status cannot activate corporate banking facilities.
For foreign investors, bank account compliance is a prerequisite for operational readiness, lawful capital deployment, and long-term business sustainability in Indonesia.
The Regulatory Framework Behind Corporate Bank Accounts
Indonesia applies a unified banking framework across company types, but enforcement varies by legal structure. Banks rely on a combination of corporate law, investment regulation, and financial supervision rules. The OSS-RBA system, BKPM investment data, and OJK banking regulations work together to determine whether a company is eligible to hold and operate a corporate account.
Every company, regardless of ownership, must exist as a legally registered Indonesian entity. This means an approved deed of establishment, a Business Identification Number or NIB, and a registered Tax Identification Number or NPWP. Without these, banks will not even initiate KYC checks.
Company Types and Banking Eligibility
Indonesia applies the same core banking principles to all companies, but banks assess eligibility differently depending on the legal structure. Understanding these distinctions helps you choose the right entry vehicle and avoid unnecessary compliance delays.
PT PMDN (Domestic Investment Company)
PT PMDN is a locally owned limited liability company where all shareholders are Indonesian individuals or entities.
- Banking accessibility: Most straightforward among all entity types.
- Capital expectation: Lower paid-up capital compared to foreign-owned companies.
- Director requirement: Resident director must be an Indonesian citizen.
- Bank scrutiny level: Standard KYC and AML checks without BKPM investment verification.
- Typical use case: Local operations, joint ventures where foreign ownership is not required, or businesses targeting the domestic market.
From a banking perspective, PT PMDN accounts are processed faster because there is no foreign capital validation or cross-border compliance review.
PT PMA (Foreign Investment Company)
PT PMA is the only structure that allows foreign individuals or foreign entities to legally operate and generate revenue in Indonesia.
- Banking accessibility: Fully permitted, but subject to enhanced compliance review.
- Capital expectation: Paid-up capital must be deposited into the corporate bank account and verified.
- Director requirement: At least one resident director. Foreign directors must hold a valid KITAS before bank application.
- Regulatory oversight: Banks cross-check company data with BKPM and OSS investment records.
- Typical use case: Foreign-owned operating businesses, regional headquarters, and long-term investments.
Banks treat PT PMA accounts as investment-linked accounts. This means capital authenticity, transaction purpose, and alignment with licensed business activities are closely monitored.
KPPA (General Representative Office)
KPPA represents a foreign parent company and is limited to non-revenue-generating activities.
- Banking accessibility: Allowed for operational purposes only.
- Capital expectation: No minimum capital requirement.
- Permitted account usage: Salaries, office rent, utilities, and administrative expenses.
- Revenue restriction: No sales, invoicing, or income collection permitted in Indonesia.
- Typical use case: Market research, liaison activities, and early-stage market entry.
Banks approve KPPA accounts with the clear understanding that funds flow in only to support operations, not to generate income locally.
KP3A (Foreign Trading Representative Office)
KP3A is a specialized representative office for foreign trading companies.
- Banking accessibility: Permitted, similar to KPPA.
- Capital expectation: No minimum capital requirement.
- Permitted activities: Market promotion, supervision of exports, and coordination with local partners.
- Account limitation: Operational expenses only, no domestic revenue.
- Typical use case: Foreign manufacturers or trading companies overseeing Indonesian market distribution.
From a banking standpoint, KP3A accounts are treated as cost-center accounts rather than commercial transaction accounts.
Also read; Can a Representative Office Open a Bank Account in Indonesia?
Capital Requirements and the 12-Month Lock-Up Rule
One of the most important regulatory developments affecting PT PMA bank accounts is the capital lock-up requirement. Paid-up capital deposited into a PT PMA account cannot be freely withdrawn for at least 12 months. Banks and BKPM both monitor this closely.
The purpose is clear. Indonesia wants to ensure that capital shown on paper reflects real economic activity. From a banking perspective, this means transactions must align with legitimate business operations such as asset purchases, office setup, or operational expenses. Poor documentation or unexplained transfers often trigger compliance reviews.
Resident Director and Physical Presence
All Indonesian companies must have at least one resident director. This requirement directly affects banking. The resident director must be physically present in Indonesia and attend the bank meeting in person.
For foreign directors, this means holding a valid KITAS before the bank appointment. Banks do not accept pending immigration status. This single requirement is the most common cause of delays we encounter in corporate bank account openings.
KYC, AML, and Beneficial Ownership Checks
Indonesian banks apply strict Know Your Customer and Anti-Money Laundering procedures. They identify shareholders, directors, and ultimate beneficial owners. They also assess business purpose, expected transaction flows, and source of funds.
For foreign investors, transparency is critical. Indonesia participates in global tax information exchange frameworks, which means bank data may be reported to overseas tax authorities. Clear structuring from the start prevents long-term compliance risks.
Practical Banking Timeline
In practice, once company registration, NIB, NPWP, and resident director requirements are fulfilled, bank account opening typically takes a few business days. However, if a KITAS is still in process or capital documentation is incomplete, timelines can extend significantly.
For a step-by-step operational perspective, you can also review our detailed bank account opening guide.
Aligning Legal Structure, Banking, and Immigration
Banking regulations in Indonesia do not stand alone. They are directly linked to company licensing, investment reporting, and immigration status. This is why we always advise foreign investors to view banking as part of an integrated compliance strategy, not a standalone task.
At InvestinAsia, we structure PT PMA setups so that business address registration, capital compliance, bank account opening, and KITAS processing align from day one. Our Special Package for PT PMA combines company establishment, business address, bank opening assistance, and KITAS support into a single, coordinated solution. This approach minimizes delays and reduces regulatory friction for foreign founders.
If you are planning to operate in Indonesia, understanding bank account regulations early will save you time, capital, and compliance risk. When you are ready to move forward, our team is here to guide you through each regulatory layer with clarity and precision.
or contact our experts for FREE consultation.
Frequently Asked Questions
Can a foreign-owned company open a bank account in Indonesia?
Yes. A PT PMA can open a corporate bank account once it is legally established, has an NIB, NPWP, and a resident director with valid KITAS.
Is paid-up capital required to be deposited into the bank account?
Yes. For PT PMA, paid-up capital must be deposited and documented through the company’s bank account.
Can the capital be withdrawn after deposit?
Capital is subject to a 12-month lock-up period and may only be used for legitimate business purposes during that time.
Do representative offices need capital to open a bank account?
No. KPPA and KP3A entities do not require minimum capital, but account usage is limited to operational expenses.
Does the director need to visit the bank in person?
Yes. Banks require the authorized resident director to appear physically to complete account opening and signature verification.
