Guide to making an IDR bank transfer

Indonesian rupiah (IDR) is a relatively obscure, but still widely used currency from East Asia. It’s one of the leading fiat currencies in this part of the world, being in the center of finance, commerce, and trading. It is a useful currency, and there are many ways you can utilize it.

A bank transfer is one of the primary means of transporting this money. Let’s see exactly how bank transfers work in Indonesia. Firstly, how do you make a transfer?

Traditional bank transfer

Walk-in transactions

Walk-in transactions entail visiting a physical bank branch to initiate an IDR bank transfer. This conventional method provides users with face-to-face interactions with bank personnel, fostering a sense of security and familiarity. To complete a walk-in transaction, follow these steps:

• Visit the bank branch during its operational hours.
• Fill out a transaction form that includes essential details like the recipient's account information, the transfer amount in IDR, and the purpose of the transfer.
• Present valid identification, which may involve an identity card or passport.
• Pay any applicable fees associated with the transaction.
• Receive a transaction receipt or confirmation for your records.

Online banking

Online banking has transformed the landscape of IDR transfers, offering a convenient and efficient alternative to in-person transactions. To conduct IDR transfers via a bank's online banking platform, consider the following steps:

• Log in to your online banking account securely using your unique username and password.
• Navigate to the ‘transfer’ or ‘payments’ section within the online banking interface.
• Add the recipient's bank account details as a beneficiary, typically including the account holder's name, account number, and the recipient bank's information.
• Enter the transfer specifics, including the amount in IDR, the transfer's purpose, and any reference details.
• Carefully review and confirm the transaction details for accuracy.
• Authorize the transfer using one-time passwords, PINs, or other security measures provided by the bank.
• Receive an electronic confirmation of the transaction, which serves as a record of the transfer.

Mobile banking apps

Mobile banking apps have emerged as a convenient and efficient way to perform IDR transfers. These apps are designed to provide users with the flexibility to manage their finances on the go, including initiating IDR transfers. Some unique Indonesian banking apps include:

• BCA Mobile. BCA (Bank Central Asia) is one of Indonesia's largest and most prominent banks. BCA Mobile offers a range of features, including fund transfers, bill payments, and balance inquiries. Users can also manage their investments and apply for loans through the app.
• Mandiri Online. Bank Mandiri, another major Indonesian bank, provides a mobile banking app, known as Mandiri Online, that allows users to perform various financial transactions. It includes fund transfers, mobile top-ups, and access to Mandiri's suite of banking products.
• BRI Mobile. Bank Rakyat Indonesia (BRI) offers the BRI Mobile app, which caters to both retail and corporate customers. The app provides features like balance checking, bill payments, fund transfers, and even access to BRI's microfinance services.
• CIMB Niaga Mobile Banking. CIMB Niaga, a subsidiary of CIMB Group, offers a mobile banking app that enables users to manage their accounts, transfer funds, and pay bills. The app also supports various investment products.
• PermataMobile X. PermataBank offers PermataMobile X, an app that enables users to conduct financial transactions, including transfers, bill payments, and investment management. The app provides a secure and user-friendly interface.

Besides these, there are also plenty of international payment services that support the currency, including Wise and Revolut. The fees charged there might be higher than what you’d have to pay on local solutions, but they can also be more comfortable.

International payments

International bank transfers in Indonesian rupiahs allow you to send IDR to recipients in other countries or receive IDR from abroad. These transfers are typically used for various purposes, including business transactions, remittances, and international investments.

Currency exchange rates

When sending or receiving IDR internationally, one of the critical factors to consider is the currency exchange rate. The exchange rate determines the value of IDR in the recipient's currency. Exchange rates can fluctuate, impacting the final amount the recipient receives.

Banks and financial institutions

International IDR transfers can be conducted through banks and financial institutions that offer international banking services. Major Indonesian banks with international presence, such as Bank Mandiri, BCA, and Bank Negara Indonesia (BNI), provide international transfer services.

Transfer methods

International IDR transfers can be conducted using various methods:

• Wire transfers. A wire transfer is a secure method that involves sending funds electronically from one bank to another. Both the sending and receiving banks must have correspondent relationships to facilitate the transfer.
• SWIFT. SWIFT codes are essential for international IDR transfers. These unique codes identify banks and ensure that funds are routed correctly. Both the sender and recipient banks must have SWIFT codes.
• Foreign exchange providers. Some financial institutions and currency exchange providers specialize in handling international IDR transfers. They may offer competitive exchange rates and lower fees compared to traditional banks.

Fees

The fees associated with international IDR transfers can vary depending on several factors:

• Sending bank fees. The sender's bank may charge fees for processing the international transfer. These fees can include service charges and currency conversion fees.
• Recipient bank fees. The recipient's bank may also charge fees for receiving international transfers. These fees can vary widely, so it's essential to check with the recipient's bank for details.
• Exchange rate margins. Banks and financial institutions often apply a margin to the exchange rate, which can result in a less favorable rate for the sender or recipient. Be aware of these margins when comparing transfer options.

Summary

If you want to transfer rupiahs via a bank transfer, there are several ways you can do it. There are a lot of considerations that you have to make, including the correct choice of solution, optimal conditions, fees, and exchange rates. Fortunately, the financial sector is well-developed in Indonesia.