Compare rates and fees for sending money to Indonesia
There are multiple ways to easily send and receive money in Indonesia but these will largely depend on the provider you decide to use.
Common Reasons for Sending Money to Indonesia
Based on transaction narrations given to the various money transfer service providers, overseas Indonesians have many reasons for sending money home.
Basic Consumption
Remittances support close to 30% of expenditures in remittance-receiving households. Food items take the lion’s share (53%) of family expenditure budgets. Household durables, transport, and rent are the other expenditure items.
Education
About 6% of remittances to Indonesian households are allocated to education. Funds for tuition fees and school-related costs usually are sent regularly at the beginning of the term.
Investments
Thanks to initiatives by the Investment Coordinating Board (BKPM), many Indonesians in the diaspora are increasingly sending money home to invest in real estate, businesses, and financial assets in the Indonesia Stock Exchange.
Emergencies
During emergencies such as the 2018 earthquake that caused flooding, deaths, and destruction of the property, particularly in the city of Palu on Sulawesi Island, remittances increased in frequency and size. Also, remittances are usually sent in response to emergencies at the family level, such as illnesses and accidents.
House Renovations
Many Indonesians in the diaspora send money for house construction or renovations. This is primarily the case for immigrants coming from poor households, as they prioritize the basic needs before making investments in businesses.
Social Contributions
Funerals, engagements, and weddings can be such an expensive affair in Indonesia. As a result, families reach out to their diaspora friends and relatives for support. In most cases, social contributions are sent together with family support funds.
Why Send Money With a Money Transfer Service?
With the features discussed in the preceding sections of this guide, it makes sense why money transfer service providers are preferred mainly by diaspora Indonesians sending money home.
Geographical Spread
Whether through bank partnerships or independent agents, money transfer providers have such a wide disbursement network coverage in Indonesia. Cash pickup locations and mobile deposits, in particular, penetrate deep into rural areas where formal banking services are not readily available.
Multi-Currency Support
The Indonesian rupiah is classified by the foreign exchange business community as an exotic currency. That notwithstanding, most providers support the IDR irrespective of where you are transferring funds from.
Speed of Transfer
Typically cash pickups and mobile wallet deposits are instant. Bank transfers take 1-3 to be delivered. Speed is vitally important, especially when transferring funds for emergencies.
Ease of Set up
Money transfer service providers are known for their ease of set up. Signing up for an account, choosing the transfer payment method, and the payout channel takes a very short time. You can also use the provider’s mobile application to make our transfer.
Exchange Rates
Money transfer providers differ in the rates they give. Some of them such as Xoom and WorldRemit charge a margin above the mid-market rates. Others such as TransferWise charge 0% margins. This gives you more Indonesian rupiahs (IDR) per unit of the sending currency.
Low Transfer Fees
Again, some providers like OFX charge $0 fees for their transfers while others like Azimo charge their recipients about 3.5% in transfer fees depending on the remittance corridor. These fees make it affordable to transfer small amounts on a regular basis to your family.
Things to Consider When Sending Money to Indonesia
Think of the following factors before you pay for your transfer and press the ‘Send’ button to your family and friends.
Taxation -Indonesians in the diaspora classified as tax residents at home must pay personal income tax on their global income. Where there is a double tax agreement, they will not be subjected to tax twice. Recipients of remittances are not taxed as this is not considered taxable income.
Currency Law – In a bid to stabilize the Indonesian rupiah, Bank Indonesia issued Regulation No 17/3/PBI/2015. This regulation, among other things, requires that all cash and non-cash transactions, including electronic transfer of funds within Indonesia, settle in rupiah.
Foreign Currency Savings and Deposits – Banks such as PT Bank HSBC Indonesia offer this type of account. It is denominated in various foreign currency options such as USD, EUR, CHF, GBP, YEN, NZD, AUD, HKD, SGD, CAD, and CNY. It is an excellent product if you want to hedge against exchange rate fluctuations. It is also a perfect fit for sending or receiving money regularly from overseas.
When sending money to Indonesia, you have many formal and legal options to use. Don’t fall prey to the risky, informal channels that end up charging you more with no assurance that your money will be delivered.
Top 3 companies for sending money to Indonesia
We understand that choosing a money transfer company can be time-consuming. This section presents the top 3 choices you can use today to send money to Indonesia.
Wise
Wise offers some of the most competitive fees in the money transfer industry. They are also transparent about the costs at every stage of the money transfer process. This keeps you informed and allows you to compare different transfer methods. Wise also provides excellent FX rates by matching the mid-market rate for many currency pairs.
The security features match cutting-edge technology for your peace of mind. For example, security measures such as 2-factor authentication are used to ensure hackers do not get access to your account. Furthermore, Wise has a clean user interface with a low learning curve for beginners.
WorldRemit
Sending money to Indonesia with WorldRemit is a straightforward process. You can preview the currency exchange rate on the homepage to compare with alternative transfer specialists. WorldRemit is authorized by the Financial Conduct Authority, which indicates the company is reliable.
The competitive transfer fees and FX rates of WorldRemit mean it is one of the top services for sending money to Indonesia. You are unlikely to find a bank transfer service that offers a better deal.
Azimo
Azimo provides a pleasant experience for sending money to Indonesia. They offer multiple payout options, including bank transfer and cash pick up. It means getting cash in Indonesia is reliably easy with Azimo. Also, there is no minimum sending amount, which is perfect for customers who need small transfers.
Azimo has a strong customer support department that offers multi-lingual support. The customer service team responds quickly via live chat, and you can use the mobile app to receive help.
The USD to IDR exchange rate
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Looking to Send Money Somewhere Else?
Sending money anywhere else in the world is as easy as sending money to Indonesia. So if you're looking to send money to another country, here is the list of the most popular destinations.
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Send Money to an From Indonesia With These Guides
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