OJK Smooths the Way for Foreigners to Open USD Account

A third of global card fraud occurred in Indonesia over the last three years, according to the National Police. (ID Photo/David Gita Roza)

By : Dion Bisara | on 9:27 AM September 18, 2015
Category : Business, Featured, Banking/Finance

Jakarta. The Financial Services Authority has eased requirements for foreigners to open a domestic, US dollar bank accounts with savings of up $50,000, as part of the country's efforts to boost its foreign exchange reserves.

Under the rule, which came into effect on Wednesday, foreigner can open a foreign currency account just by showing a passport if they intend to deposit between $2,000 and $50,000, the financial body (OJK) said in a statement on Thursday.

"This policy is intended to attract foreign funds into the Indonesian banking system," OJK communication director M. Jufrin said in the statement.

"It is also expected to increase foreigners' interest to invest or travel in Indonesia."

Those seeking to deposit more than $50,000 need to submit additional documents, such as a reference from a bank in their country of origin, identification papers of their spouse, a copy of their residence permit, and a photocopy of a credit card or debit card.

The government will also provide a tax cut on interest, with the discount increasing in line with the amount of savings placed in the account.

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