As Southeast Asia's largest economy, Indonesia attracts many businesses to engage clients and provide services.
According to the Asian Development Bank, Indonesia's economy is expected to grow by 4.8% in 2022. Indonesia is also driving digital economy growth in the region, expanding by 11% to US$44 billion in 2020.
With growing potential, you may find yourself engaging Indonesian customers and clients. Yet it might be challenging to find a cost-effective way to collect payments in Indonesian Rupiah (IDR). There aren't many banks or fintech platforms that accept international payments in IDR. Often, you would have to accept payments in USD, GBP and EUR then convert to IDR.
If you find yourself in such a situation, this article is for you. For all foreign businesses that are expanding to clients in Indonesia, here is our guide on how you can seamlessly receive international payments in IDR.
Common Challenges When Accepting Payments In IDR
Cross-border payment platforms tend to focus on popular currencies such as USD, GBP and EUR. This leaves it tricky to figure out how to best accept payments in IDR.
Let's say you are a business in Singapore who has customers in Indonesia. Without a local currency account, your customer would have to use an international wiring service to transfer his or her payment. In that instance, your bank in Singapore would go through intermediaries to receive the payment thus incur additional bank fees, conversion fees and a mark-up on rates. The additional costs would absorb more of your own service fee and you end up receiving less than the amount you raised in the invoice.
This is why the Global Collection Account with Wallex acts like your domestic virtual account in Indonesia. You can generate a virtual bank account for your company. This way, you can accept payments more cheaply and quickly. Instead of going through intermediaries, your collection of payment can be completed through one payment system.
How to Receive IDR Through Wallex Global Collection Account
1. Sign up for Wallex at https://accounts.wallex.asia/signup
Creating an account with us is 100% online and free with no maintenance or fall below fee.
2. You can then submit your documents for KYC online, all in one click!
3. Once your documents are verified, you can start using our platform. Click "Collections" on your menu, then "Add New Collection" to select IDR.
4. Once you select IDR, click to "Activate Local Currency Account". Your account will be activated immediately.
5. You can then proceed to create your IDR Account Details, which can be shared to your customers and clients.
Do note that you will receive account information per bank for each new VA Account creation, e.g.:
Supported banks include:
- Permata Bank
- Bank Bri
6. Funds will be received in your Wallex wallet
7. If you wish, you can further proceed to remit your funds to make payments to 180+ countries globally. Find out more about our cross-border payment solution here.
Receive IDR as if you have a local bank account
- Save time when you open an account
Create your Wallex Global Collection Account at the click of a button. Skip the bank queues and excessive paperwork usually involved in setting up international bank accounts. Moreover, for Indonesia, you tend to have to travel physically to open a bank account - which would be challenging amid the Covid-19 situation.
- Increase your net earnings
Wallex provides competitive rates and fees, allowing you to reduce your FX losses. Through less intermediaries, we also help you save on multiple conversion fees, thereby increasing your net earnings.
- No monthly maintenance fees
Zero monthly maintenance or fall below fees. Our global accounts are at your convenience.
There are also no time limit or restrictions when it comes to maintaining IDR in your customer VA, allowing you to convert at your comfort and convenience - as well as capitalise on the best market rates possible.
Start Your Global Collection Account with Wallex
Establish your virtual bank account in minutes with Wallex. Through collecting payments via Wallex, you can improve the quality of the transaction experience for your clients and customers by providing flexible and easier payment options while you benefit from the peace of mind of instant payment collections.
Sign up for free at www.wallex.asia
Aside from accepting international payments in IDR, you may also receive international payments in 34 other currencies. Find out more about the Global Collection Account here.