HSBC Treasury Management Profiles 2018 -

Current section, Introduction


Indonesia is Southeast Asia’s largest economy. Manufacturing is the primary source of economic growth (in 2016 it contributed 20.5 per cent to GDP), but services such as those provided by the tourism sector (11 per cent of GDP in 2016), are also strong contributors to the country’s GDP. However, economic growth has been sluggish. GDP grew by 5.0 per cent in 2016, and is forecast to grow by 5.1 per cent in 2017. President Joko Widodo has implemented a major infrastructure programme to help stimulate the economy; the World Bank estimates that USD500 billion is required to be spent in order to meet the country’s infrastructure needs. In September 2017, in a move aimed at securing greater support for government infrastructure projects, Indonesia's financial regulator, the OJK, changed its rules governing investments by non-bank financial institutions. Attracting wider investment to boost growth and jobs is also required to lift investment in the country: FDI in Q1 2017 was a modest 0.9 per cent year-on-year, according to Indonesia’s Investment Coordinating Board. To strengthen the investment climate, the government has announced a number of policy reforms intended to reduce red tape and to speed up the time it takes to process investment applications.

To read the detailed report, please click on the Download PDF option

Legal and regulatory

  • Foreign exchange accounts can be held by residents abroad. Resident domestic currency (IDR) accounts are allowed to be converted into foreign currency
  • Non-resident bank accounts are permitted in both foreign and domestic currency. Non-residents are restricted to holding current, savings and time deposit accounts. A transfer in IDR to a non-resident account is permitted only as part of an underlying economic transaction
  • Onshore banks are prohibited from carrying out certain transactions with non-residents including the provision of overdrafts and domestic currency transfers between accounts held by the same non-resident

To read the detailed report, please click on the Download PDF option


  • Resident companies are taxed on their worldwide income
  • Non-resident companies are only taxed on their Indonesian-sourced income including income attributable to a permanent establishment (PE) in the country
  • A corporate taxpayer (other than a PE) with taxable income of IDR4.8 billion is subject to a corporate tax rate of 1 per cent. Revenue of between IDR4.8 billion and IDR50 billion receives a 50 per cent reduction on taxable income for gross revenue up to IDR4.8 billion

To read the detailed report, please click on the Download PDF option

Payment instruments and systems

  • Cash is an important payment medium in Indonesia, particularly for low-value retail transactions. Electronic credit transfers are used for both high-value corporate and low-value retail payment transactions, although cheque use remains high, particularly for commercial payments. Payment card use, particularly of debit cards, is rising
  • Electronic money and mobile wallet payment schemes are increasingly popular: in 2016, year-on-year mobile wallet transaction value increased 90 per cent
  • Indonesia operates two national payment systems: BO-RTGS, an RTGS system, and the SKNBI automated clearing system for credit and debit transfers

To read the detailed report, please click on the Download PDF option

Cash management

  • Notional pooling and cash concentration is permitted for resident entities only. Cross-border sweeping is permitted
  • A range of collection services are available, including lockbox services

To read the detailed report, please click on the Download PDF option

Electronic banking

  • Internet and mobile banking services are provided by the country’s leading banks for both corporate and retail purposes
  • In 2015, the Financial Services Authority launched a branchless mobile banking service aimed at individuals, particularly in rural areas, who do not have access to banking facilities. Six banks provide this service
  • Of the estimated 132.7 million internet users in the country, 48 per cent access the internet via a smartphone

To read the detailed report, please click on the Download PDF option



To read the full report on Indonesia and to discover more on these and other topics, including banking and trade, please click on the Download PDF option.


  • Indonesian Internet Service Provider Association
  • Organisation for Economic Co-operation and Development
  • World Bank
  • Indonesia's Statistics Agency (Badan Pusat Statistik)

The materials contained on this page were assembled in May 2017 (unless otherwise dated).



This document has been produced by HSBC Bank plc and members of the HSBC Group (“HSBC”), together with their third-party contributor, WWCP Limited. We make no representations, warranties or guarantees (express or implied) that the information in this document is complete, accurate or up to date. We will not be liable for any liabilities arising under or in connection with the use of, or any reliance on, this document or the information contained within it. It is not intended as an offer or solicitation for business to anyone in any jurisdiction. The information contained in this document is of a general nature only. It is not meant to be comprehensive and does not constitute financial, legal, tax or other professional advice. You should not act upon the information contained in this document without obtaining your own independent professional advice. The information contained in this document has not been independently verified by HSBC.

This document contains information relating to third parties. The information does not constitute any form of endorsement by these third parties of the products and/or services provided by HSBC or any form of cooperation between HSBC and the respective third parties.

Under no circumstances will HSBC or the third-party contributor be liable for (i) the accuracy or sufficiency of this document or of any information, statement, assumption or projection contained in this document or any other written or oral information provided in connection with the same, or (ii) any loss or damage (whether direct, indirect, consequential or other) arising out of reliance upon this document and the information contained within it.

HSBC and the third-party contributor do not undertake, and are under no obligation, to provide any additional information, to update this document, to correct any inaccuracies or to remedy any errors or omissions.

No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of HSBC and the third-party contributor. Any products or services to be provided by HSBC in connection with the information contained in this document shall be subject to the terms of separate legally binding documentation and nothing in this document constitutes an offer to provide any products or services.