Credit Facility in Indonesia (Part I)
Credit Facility in Indonesia are implemented based on the below legal references:
- Indonesian Civil Code.
- Indonesian Commercial Code.
- Law of The Republic of Indonesia Number 7 Year 1992 concerning the Bank as amended by Law of Republic of Indonesia No. 10 Year 1998 concerning the Amendment of Law Number 7 Year 1992 concerning Bank (“Law of Bank”).
- Regulation of Bank Indonesia Number 17 Year 2015 concerning the Obligation of Rupiah Currency in the Unitary State of the Republic of Indonesia
- Regulation of Bank Indonesia Number 18 Year 2016 concerning Foreign Currency Transaction Towards Rupiah Between Bank With Foreign Party
- Law of The Republic of Indonesia Number 42 Year 1999 concerning Fiduciary with all of its amendment (“Law of Fiduciary”).
- Law of The Republic of Indonesia Number 4 Year 1996 concerning the Mortgage Right of The Land and Land Related Objects (“Law of Land Mortgage”).
- Law of The Republic of Indonesia Number 17 Year 2008 concerning the Shipping (“Law of Shipping”).
- Law of The Republic of Indonesia Number 9 Year 2006 concerning the Warehouse Receipt System with all of its amendments (“Law of Warehouse Receipt”).
- Law of The Republic of Indonesia Number 37 Year 2004 concerning the Bankruptcy and Postponement of Debt Settlement Obligation with all of its amendments (“37/2004 Law”).
A. Bank Account
A foreign individual may open their own bank account on behalf of the individual and also their business entity in Indonesia. The requirement and procedures of each account may vary from each different bank services, overall the main requirement to open a bank account, as follow:
- Saving Bank Account
Bank account for the saving purpose may only be opened by individual by providing the passport, residence permit (or other acceptable reference letter), and taxpayer number.
- Giro Bank Account
Bank account for the purpose giro transfer may be opened by the individual foreigner, the foreign entity representative office in Indonesia, and the Indonesia and foreign companies. The requirement for the individual foreigner is the same as the requirement to open the saving account, however requirement for the foreign entity representative office and the Indonesia companies to open this bank account shall include the copy of deed of establishment, business permit, taxpayer number, the PMA director legal identity (residential permit), and the authorization document.
Further explanation regarding Credit Facility in Indonesia will be explained in the next Article.
Suria Nataadmadja & Associates Law Firm
Advocates & Legal Consultants