This article will be very useful to you if you are:
- A foreigner living abroad who supports his Indonesian girlfriend financially
- An Indonesian working abroad who needs to remit his salary in his Indonesian bank account
- An expat who wants to transfer funds to Indonesia to make a purchase (car, home) or an investment
- A traveler who lost his wallet and urgently needs money
I've written it based on my experience living in Indonesia for the past 12 years (first in Jakarta, then in Bali). I'm sure you have your own stories as well so please do not hesitate to leave a comment with your own tips.
TransferWise: Cheapest and Easiest Way to Send Money to Indonesia
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| You can make your own transfer simulation in just one click here |
Compared with traditional banks, TransferWise does not actually transfers any money. It maintains banks accounts in key currencies in various countries. When you make a transfer request, for instance from USD to IDR, they will debit your US bank account from their US bank account and credit your Indonesian bank account from their Indonesian bank account.
Using TransferWise, the cost of sending money from abroad to Indonesia is only 1,5% of the transferred amount (minimum charge IDR14,500).
If you transfer USD1,000, it means you will only pay USD15 (+ a credit card charge depending on your bank). There are no hidden fees and they use the official exchange rate. That's at least 8 times less than what you would pay with traditional banks.
If you transfer USD1,000, it means you will only pay USD15 (+ a credit card charge depending on your bank). There are no hidden fees and they use the official exchange rate. That's at least 8 times less than what you would pay with traditional banks.
Pros:
➝ Cheapest way to send money from abroad to Indonesia
➝ As simple as it can be, just like booking a hotel room or buying stuff from any e-commerce site
➝ Less than 10 minutes needed to make the request
➝ They do not take commission on currency exchange rate (they use the official rate)
➝ They do not take commission on currency exchange rate (they use the official rate)
➝ You can make an accurate simulation of the cost of the transfer in a few seconds on their website
➝ They will tell you in advance when the money will be transferred and you can follow your money in real time through their app
➝ 100% transparent: They let you know how much commission they took and the exchange rate they used
Cons:
➝ Available for transfer from USD to IDR but not yet from IDR to USD
➝ Limited number of currencies you can transfer from: EUR, USD, Pound, AUD, JPY, SGD. You can check here if your home currency is accepted.
➝ Limited number of currencies you can transfer from: EUR, USD, Pound, AUD, JPY, SGD. You can check here if your home currency is accepted.
➝ You need an Indonesian bank account to transfer the money (You must know your IBAN and your SWIFT/BIC number)
➝ The transfer is not automatic and it may take from 1 to 2 days to be completed (for an Indonesian transfer)
Western Union: Only for Urgent Money Transfer to Indonesia
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| Unlike TransferWise, Western Union charges a fee but also takes a commission on the exchange rate |
Western Union is facing tough competition but it can still be a useful way to send money to Indonesia. In particular, if you are a traveler who lost his personal belongings and need fast money, there are no better alternatives (actually, there is also MoneyGram which is similar).
I was using Western Union a lot when I didn't have an Indonesian bank account. You can pick up the money sent in cash in any of their agents locations (for instance in post offices - there are thousands in Indonesia).
The problem with Western Union is that it is expensive. If you want to transfer 1,000USD to IDR (instant transfer from an agent to an agent), it will cost you over USD80 + an hidden exchange rate fee of around IDR500,000 (as a reminder, it costs only USD15 with TransferWise).
If you transfer the money to an Indonesian bank account, it is cheaper yet still over 40$ and it takes a few days.
I was using Western Union a lot when I didn't have an Indonesian bank account. You can pick up the money sent in cash in any of their agents locations (for instance in post offices - there are thousands in Indonesia).
The problem with Western Union is that it is expensive. If you want to transfer 1,000USD to IDR (instant transfer from an agent to an agent), it will cost you over USD80 + an hidden exchange rate fee of around IDR500,000 (as a reminder, it costs only USD15 with TransferWise).
If you transfer the money to an Indonesian bank account, it is cheaper yet still over 40$ and it takes a few days.
Pros:
➝ You can send money to Indonesia within minutes
➝ Money can be sent even if both the sender and the receiver do not have a bank account
➝ Works for virtually every country
➝ You can pay directly on Western Union's website using your credit/debit card
➝ Money can be sent even if both the sender and the receiver do not have a bank account
➝ Works for virtually every country
➝ You can pay directly on Western Union's website using your credit/debit card
Cons:
➝ Very pricey if you choose fast service and to send/receive money in agent's location
➝ Hidden commission on the currency exchange rate
➝ If you send money to an agent location, you can only use the service during operation hours (close on weekends)
➝ Hidden commission on the currency exchange rate
➝ If you send money to an agent location, you can only use the service during operation hours (close on weekends)
Skrill iT: An Alternative to Western Union For Small Amounts
Skrill is a great way to make international money transfers. It is fast, yet much cheaper than Western Union (about 3% from total amount while Western Union takes up to 15%). The other advantage is that the person who receives the money does not need to have an Indonesian bank account. He can just take the money in any Alfamart in Indonesia. All he needs is an Indonesian phone number and a valid ID.
For a normal transfer of money, I don't recommend it over TransferWise as it is still more expensive and you can't send more than the equivalent of Rp5,000,000 at once.
As an alternative to Western Union (meaning for an urgent transfer or to send to someone who does not have a local bank account), it is perfect as long as you don't need to send too much money.
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| Skrill iT is a mix between Western Union and TransferWise |
For a normal transfer of money, I don't recommend it over TransferWise as it is still more expensive and you can't send more than the equivalent of Rp5,000,000 at once.
As an alternative to Western Union (meaning for an urgent transfer or to send to someone who does not have a local bank account), it is perfect as long as you don't need to send too much money.
Pros:
➝ Instant money transfer, just like Western Union
➝ Fees and commission on exchange rate relatively low (around 3% of total amount)
➝ You can pay online on their website: https://www.skrill.com/skrillit/
➝ You only need an Indonesian phone number to receive the money
➝ It's very easy to find an Alfamart in Indonesia and they have long opening hours
➝ Fees and commission on exchange rate relatively low (around 3% of total amount)
➝ You can pay online on their website: https://www.skrill.com/skrillit/
➝ You only need an Indonesian phone number to receive the money
➝ It's very easy to find an Alfamart in Indonesia and they have long opening hours
Cons:
➝ Only works for small amounts under Rp5,000,000 (though you can make multiple transfers)
➝ Still more expensive than TransferWise
➝ The staff in some Alfamart may be confused as they are not trained properly to handle the cash disbursement (just be patient!)
Other Ways to Send Money To Indonesia➝ Still more expensive than TransferWise
➝ The staff in some Alfamart may be confused as they are not trained properly to handle the cash disbursement (just be patient!)
Some online currency exchange companies are starting to offer international money transfer now with competitive rates. They will always be more expensive than TransferWise though. They can be useful only if you intend to send a lot of money to Indonesia (over 10,000$). The most famous companies are TorFX, HiFX or OFX. I would advise you to try the latter as it has an online simulation tool.
PayPal is cheap when you send money in the same currency to another PayPal accounts holder but for international transfer it is not worth it (when you add up the fee and the commission on exchange rate, it costs about 80$ for 1,000$ sent).
A transfer from a foreign bank to an Indonesian bank with SWIFT is out of the question. You shouldn't even consider it. I did it once to send 200$ and I paid 40$ in fees (that's a 20% commission!).
If you know a cheaper and more convenient way than TransferWise to send money to Indonesia, please leave me a comment below. I wouldn't mind saving even more on my transfers. I'm also interested if you have tips about how to send money from Indonesia to another country.