How to Send and Receive Money From Overseas to Indonesia

Written by
Ekky Pramana
Last Modified on
March 7, 2024

In today's world where businesses are connected globally, there is a growing need to send money from other countries to Indonesia. This happens when foreign companies want to process payroll for their remote Indonesian employees or settle bills with suppliers in Indonesia. As international business relationships grow, it's important for business owners and financial experts to know the best ways to send money from overseas to Indonesia.

This article will talk about the steps you should take before sending money and help you understand the fees involved and the different methods for transferring money from other countries to Indonesia. It will also discuss how to receive money in Indonesia using well-known platforms like PayPal and international services like Western Union.

By understanding these processes and choices, we hope readers can make receiving money from other countries easier and more efficient.

Things to prepare before sending money from abroad to Indonesia

Before you send money from another country to Indonesia, there are a few important things to know to ensure a smooth transfer process. First, you need to prepare the required information and data carefully. This includes verifying accurate data such as:

  • the recipient's full name and address
  • the amount of money to be sent
  • the name and address of the branch office
  • the recipient's bank account number
  • the recipient's bank routing number
  • the SWIFT or BIC code of the recipient's bank (if applicable).

It's crucial to contact the recipient to confirm the accuracy of this information to avoid potential errors that could hinder the transfer process or even cause the funds to be held.

Next, you need to learn about the fees charged by the service provider. Each service provider has a different fee structure, including administrative fees and foreign exchange rates. Some providers may offer more favorable exchange rates, while others may impose additional fees that need to be considered.

Additionally, you must choose the best service provider by identifying a reliable one with a good reputation that offers transfer options suitable for your business needs. Thorough research on the reputation and policies of each provider will help ensure that each cross-border transaction takes place safely and effectively. With preparation, businesses can confidently operate without significant obstacles in managing funds received from abroad.

It's also essential to find out about the duration of fund transfers from each service provider. Knowing the estimated time it takes for funds to reach the recipient's account is crucial, especially in a business context where transaction speed can directly impact daily operations.

Each service provider has different policies and procedures regarding the time it takes to transfer funds. Some providers may offer fast transfer options with additional fees, while others may have standard delivery times but with lower costs. Additionally, it's worth considering external factors that can affect the duration of the transfer, such as the time zone difference between the sender's country and Indonesia, national holidays, and potential delays that may occur. Knowing the expected duration for fund transfers will help businesses plan their finances and cash management more effectively.

Details of Charges Incurred in Transfers from Abroad to Indonesia

The costs associated with transferring money from abroad to Indonesia can involve several elements that need careful consideration. Firstly, administrative fees are a primary factor that requires careful consideration. Each bank or international transfer service provider typically imposes administrative fees to process such transactions. These fees can vary depending on the policies of each financial institution.

Furthermore, foreign exchange rates play a crucial role in determining transfer costs. Service providers often apply a currency exchange rate spread, which is the difference between the buying and selling exchange rates. Therefore, in addition to administrative fees, businesses also need to take into account the exchange rate differences that can affect the amount of money received.

Some service providers may also impose additional fees related to specific types of transfers, such as express transfers or regular transfers. Express transfers usually incur higher fees but can expedite the fund transfer process. On the other hand, regular transfers may take longer but come with lower costs.

Additionally, transfer fees may involve commissions or fees from the receiving financial institution in Indonesia. This aspect needs careful consideration as it can impact the final amount received by the recipient.

To ensure transparency and avoid unexpected surprises, it is highly recommended to carefully read and understand the terms and conditions applicable at each step of the process of transferring money from abroad to Indonesia. With a thorough understanding of these charges, businesses can manage their finances more effectively and optimize the international fund transfer process.

How to save money by sending and receiving money from overseas with Aspire

One effective way to send and receive money from abroad to Indonesia at a low cost is by utilizing the business account provided by Aspire, a modern fintech company offering innovative banking solutions. Aspire offers a multi-currency business account product that enables users to engage in international transactions with low, competitive, and transparent FX costs.

By having a business account with Aspire, users can enjoy the benefits of competitive currency exchange rates, reducing costs typically associated with exchange rate differences. Additionally, Aspire provides a quick and efficient transfer process, ensuring that funds reach their destination promptly without lengthy delays.

Another advantage of Aspire's business account is its high level of fee transparency. Users can easily access and understand the costs associated with each transaction through a user-friendly platform. This assists businesses in planning and managing their finances without unexpected surprises.

With user-friendly features, low costs, and transparent services, Aspire's business account offers an innovative and efficient solution for businesses engaged in cross-border transactions. In the face of globalization, choosing a modern and reliable banking solution like Aspire can help businesses optimize the process of sending and receiving money from abroad more effectively and cost-efficiently.

How to receive money from overseas through Western Union

Receiving money from abroad to Indonesia through Western Union is one of the most popular and easily accessible options. Western Union provides a fast and reliable service for sending money from overseas to Indonesia. To receive a transfer via Western Union, the first step is to visit one of their official agent locations in Indonesia. To ensure a smooth process, make sure to bring valid identification, such as an ID card or passport, along with the transaction details provided by the sender.

Upon arriving at the Western Union agent, complete the money receipt form with accurate details, including the transfer code and the expected amount. The Western Union agent will then verify this information and provide guidance on the next steps. It's important to note that Western Union may charge fees for their services, and the currency exchange rate can impact the amount received.

Once all procedures are completed, you will be provided with a transaction receipt containing essential information, such as the transfer code and the received amount. This information is crucial, and it's advisable to keep it safe. With the convenience and extensive network of agents worldwide, Western Union remains one of the leading choices for quickly and efficiently receiving money transfers from abroad.

How to receive money from overseas using PayPal

Receiving money from abroad using PayPal has become one of the practical and popular methods in this digital era. To start receiving funds through PayPal, the first step is to ensure that you have a verified PayPal account linked to a valid bank account. After that, the sender from abroad can use the email address associated with your PayPal account to send funds.

Once the money is sent, PayPal will notify you via email and provide information about the received amount and the origin of the transfer. Subsequently, you can log into your PayPal account to view your balance, verify transactions, and withdraw funds to your local bank account if desired.

It's important to note that there is an administrative fee of Rp16,000 for withdrawing funds of less than US$100 to your local bank account. Additionally, your funds typically will be transferred within 1 to 4 business days. Before relying on PayPal to receive money from abroad, make sure you understand the fee policies and usage terms to avoid unexpected surprises related to the fund reception process through this platform.

▶️  Watch Video
About the author
Ekky Pramana
is a seasoned writer specialising in business finance and management. With a writing history at Tech in Asia, Teknoverso, and various other publishers, he leverages his market expertise to empower and educate first-time founders in managing their businesses better.
Supercharge your finance operations with Aspire
Find out how Aspire can help you speed up your end-to-end finance processes from payments to expense management.
Talk to Sales