As the fourth most populous country in the world, Indonesia is a key market for businesses looking to expand their operations. The country has a rapidly growing economy and a large consumer base, making it an attractive destination for companies looking to enter the Southeast Asian market.
However, there are several challenges that companies should be aware of when expanding to the country. These include the need to comply with local regulations, navigate the complex bureaucracy, and deal with infrastructure challenges.
This article will delve into the nuts and bolts of sending and collecting payments to and from Indonesia in IDR.
Why Accepting IDR International Payments is Crucial for Your Business
If you’re a business owner looking to expand your reach globally, accepting international payments is a must.
By accepting IDR international payments, you also open up your business to new revenue streams and a broader customer base. Customers are more likely to complete transactions without concerns about exchange rate fluctuations or additional conversion fees.
That leaves us with the elephant question: How can you overcome the accept overseas payments such as IDR effortlessly?
Overcoming Challenges of IDR International Payments
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 that has customers in Indonesia. Without a local currency account, your customer would have to use an international wiring service, also referred to as intermediaries, to route the payments to the intended destination account.
Although this does not incur any additional effort on the originator/sender’s behalf, it comes at a cost of additional bank fees, conversion fees, a markup on the FX rates, and takes a much longer time for the payment to settle.
Over the long run, this will result in a hefty setback for your business as it eats away at your profits.
With that, if your business regularly deals with Indonesian Rupiah (IDR) payments, you may have experienced some of the challenges that come with processing international transactions in a foreign currency. One solution to simplify the process and improve efficiency is by using a virtual account such as the Global Collection Account with Wallex.
This way, you can accept payments more cheaply and quickly. Instead of going through intermediaries, your collection of payments can be completed through one payment system.
What is a virtual account?
Virtual accounts are unique banking solutions that allow businesses to receive IDR payments from customers and partners without the need for physical bank accounts. They offer a range of benefits, including simplified reconciliation, enhanced cash flow, and improved customer experience.
Virtual accounts can also help to reduce conversion fees, as the payments are received and processed in IDR, eliminating the need for multiple currency conversions.
If you're considering expanding your business to the Indonesian market or already have existing customers in Indonesia, virtual accounts are an excellent tool to simplify the payment process and improve efficiency.
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. Complete our account verification process.
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. 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.
The benefits of receiving 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.
Increase your net earnings
Wallex provides competitive rates and fees, allowing you to hedge and 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.
Choosing the Right Payment Gateway for IDR International Payments
When it comes to receiving payments from customers in Indonesian Rupiah, selecting the right payment gateway is crucial. A payment gateway is a secure online platform that processes transactions and facilitates the transfer of funds from customers to merchants.
To ensure a smooth payment experience for your customers, it's important to choose a payment gateway that supports IDR transactions.
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.