The UK has a significant migrant population and whilst those immigrating from Indonesia may be small, along with other communities it is expected to grow. If you are a migrant from Indonesia then transferring money to Indonesia will be a part of your everyday business and personal life. There is a necessity to understand the costs involved in this and it is important to keep costs to a minimum.
Below, we lay out our recommended options for transferring money abroad based on different situations.
The Best Ways to Transfer Indonesian Rupiah
Moving to or from the UK
All of the UK banks let you transfer money to Indonesia and back and it’s a very easy process to do so. However, not all banks will accept transfers in Indonesian Rupiah (IDR). It’s also worth remembering that the fees charged by banks for international transfers are high, and you will not be getting the most competitive exchange rate.
To avoid large fees, consider using an online money transfer service. This will give you far greater choices as to how to transfer your money.
Our Verdict: OFX gives you competitive exchange rates for transfers of Indonesian Rupiah. A good choice for payments that are under £10,000.
Business from the UK to Indonesia
If the business is frequently making transactions between Indonesia and the UK, there are a couple of things to consider.
- The Exchange Rate Margin is the difference between the rate you are offered and the wholesale exchange rate published by xe.com.
- The specific business products on offer. These could be forward exchange contracts, limit orders and foreign currency accounts.
Our Verdict: HiFX has great exchange rates and a £0 fee structure which maximizes your overseas payments. You can also set up foreign currency accounts. This lets you keep the funds in your account in a foreign currency, only converting them when the time is right.
Buying a Property
Regardless of whether you are moving to Indonesia and buying your first home or purchasing a property as an investment, you need to find a provider who has a strong presence in both countries. This will give you peace of mind and flexibility in what is usually a stressful time.
Our Verdict: TorFX is the obvious choice for international property transactions. It has local account managers in each country and a global network.
Sending Money Home
Western Union, for example, is the ideal choice for sending small amounts internationally, like gift money for friends or relatives. Other companies may waive transfer fees if you are sending a large amount. Discussing your specifics with a money transfer specialist is critical to getting the right deal for you.
Payment for tuition can be a big expense. You need to pay tuition fees regularly but there are also multiple other expenses associated with studying. As for the tuition fees and other larger payments, you need to ensure that you shop around for the best exchange rates. For those smaller transfers make sure you keep a careful eye on the fee you are being charged.
Best Ways to Send Money to Indonesia
The Costs of Sending Money to Indonesia
Trying to figure out the complete cost of a money transfer can be difficult; it all depends on the transfer method and the fees involved, the margins aren’t always clear. To help you, we’ve compiled a list of the most common charges you’ll face when sending money from one account to another.
- The Transfer Fee – This is also called a Telegraphic Transfer (TT), a Wire Transfer or a Remittance Fee.
- Exchange Rate Margin – The difference between the rate you are getting and the wholesale rate you see on xe.com.
- Correspondent Bank Fees – The fees that your bank charges for guaranteeing your transfer gets to the right account. It is charged when the funds arrive in the recipient’s account, it’s always very difficult to estimate it and impossible to reverse.
- Receiving Bank Fee – If you’re transferring foreign currency into an overseas bank then that bank will charge you a fee for doing so. For instance, if you send Indonesian Rupiah to a British bank account, the British bank will charge you for converting it.
What are the options?
Banks in the UK have more competitive fees and better exchange rates than most other banks around the world as there is much more competition for this kind of service in the UK. Using a bank is the fastest way to get money between accounts.
If you’re sending less than £1,000 then this is a great option. The fees will be similar to those you’ll find at a bank but the exchange rate will be better. If the person you are sending money to also has a PayPal account, the process is made even more convenient.
Money Transfer Company
Money transfer companies such as HiFX and OFX are definitely the cheapest option if you are sending anything over £1,000. They offer low to no fees and the exchange rates are better. However, it can take a little longer to make the transfer which is a disadvantage. You’ll initially have to set up an account with them. This process can be as short as ten minutes or as long as two days depending on the company and what they need to know. When you eventually make the transfer it can also take one day longer than a bank.
How to use a Money Transfer Company (instead of a Bank)
Sending money to Indonesia in this way is similar to using a bank, but with a few distinct differences. Here are the basic online steps.
Setting things up (one off)
- Log in to their website and enter the details required. Make sure you have ID available
- Wait for account approval, you’ll then receive a login and a password.
- Ensure you have the banking details of where you are sending the money and enter them. The receiver is usually known as the ‘Recipient’ or ‘Beneficiary’.
Transferring the Money
- Advise the amount you want to send and get a quote.
- Reconfirm the details, accept the exchange rate offered to you and confirm the amount in sterling.
- You will receive a confirmation of the deal. You will pay them in sterling before the amount is sent to Indonesia.
Information You’ll Need Before Making Your Transfer
When sending funds overseas you will need the following information about the account you are sending to.
- Account name of the recipient
- Their address
- The SWIFT code of the bank
Banks can be picky and it is worth checking to ensure your details don’t have a digit or a letter out of place, just to ensure the process isn’t held up.
Here is a list of SWIFT codes for the larger banks in Indonesia.
- Bank Mandiri : BMRIIDJA
- Bank Rakyat Indonesia : BRINIDJAXXX
- Central Asia Bank : CENAIDJA
- Bank CIMB Niaga Indonesia : BNIAIDJA
How Long Does it Take to Send Money to Indonesia?
If you’re looking for speed then HSBC, Western Union and PayPal are your best options. Transfers take a matter of minutes. If you’re sending money to a bank account using a bank then the process will take 1-2 days. If you’re using a money transfer specialist that could increase to 2-3 days. To find out more on how long it takes to transfer money overseas, click here.
Is There a Minimum Transfer Amount?
Banks and PayPal do not have a minimum limit but some money transfer specialists do. Before using them, we recommend you check their minimum transfer amount.
Putri and Kevin live in Jakarta but are looking to join family already living in Manchester in England. They have their accommodation sorted and visas have already been issued. They are now considering the best way to transfer the proceeds from the sale of their house to a UK bank account.
The amount is in excess of £1,000 so the money transfer specialists are the best option as they will not charge any fees and the exchange rate offered is competitive.