INDONESIA

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With a population of 281 million and a forecasted GDP of $1,429bn in 2025, Indonesia is a large emerging‑market economy, with growing diversification and sizeable demographic advantage. External net asset data are not systematically reported, but the country’s external position has historically been moderate — current account deficits and foreign portfolio liabilities suggest a net external liability position.
Public debt remains moderate: government debt has been estimated at about 36% of GDP, with a fiscal deficit of around 1.3% of GDP for fiscal year 2023. These figures position Indonesia favorably relative to peers, although exposure to global rate shifts is a concern.
Indonesia benefits from strong commodity export performance and ongoing infrastructure and bureaucratic reforms that aim to support growth. Nonetheless vulnerabilities include shocks to commodity demand, global rate tightening, and institutional constraints. 

Population growth (~1.1%) supports long-term potential, but productivity remains modest. Growth in 2023 was around 5–6%, with moderate inflation and stable macroeconomic policies.
Key medium-term risks include managing subsidy burdens, climate vulnerability, and deepening structural reforms to sustain growth and public debt sustainability.

Summary

BNP Paribas has been active in Indonesia since 1970 and is currently the only French bank, and one of only a few global banks, with a full service offering in Indonesia. BNP Paribas offers a multi-disciplined team to support a wide range of customer requirements, including cash management and trade finance. The bank has a full banking license which permits activities in all currencies including IDR.

BNP Paribas is a major player in trade finance throughout Asia, offering a full suite of traditional trade (letters of credit, bankers’ guarantee, trade financing, standby letters of credit, etc.) and supply chain financing solutions (receivables purchase programmes, supplier financing etc.) products, including a unique inventory solution offered through its trade centres in Australia, China, Japan and Singapore, specifically for companies engaged in international trade, as part of a wider network of more than 100 trade centres globally. BNP Paribas has experienced trade finance advisors and personnel who deliver a range of customised trade solutions and advise on local market practices. These solutions are supported by the bank's ISO-certified trade services support team.

Currency

  • Indonesian rupiah (IDR)

Bank accounts

  • A company is considered resident in Indonesia if it is domiciled in or incorporated in Indonesia.

BNP Paribas Cash Management Capabilities

Cash collections
Cheque collections
Direct debit collections
Domestic incoming transfers
Virtual IBAN
Virtual accounts
International incoming transfers
Card acquiring

Payments & collections

Cash remains the predominant payment method in Indonesia for low-value transactions; according to a 2020 Worldpay Global Payments Report, cash accounts for 77% of point-of-sale purchases. Credit card penetration is estimated at 0.07 credit cards per capita. However, the launch of QRIS, the national QR standard, in 2019, which ensures interoperability between different payments providers, and the Covid pandemic, has seen the use of digital payments rise. According to Bank Indonesia (BI), the value of electronic money transactions reached IDR 201 trillion in 2020, growing by 38.62% from 2019.With a smartphone penetration rate above 60%, the country is well-positioned to take advantage of digital payment methods; there are already more than 48 e-wallet platforms operating, including GoPay, Dana and OVO.  

In 2019, Bank Indonesia published its Payment Systems Blueprint 2025. Its focus is on the development of a digital economy via the digitisation of payments and payment systems. As part of this initiative, the central bank plans to launch BI-FAST (end 2021), a real-time payment infrastructure for card-based instruments, electronic money, and direct to account (credit and debit transfers) schemes. BI-FAST, which will replace the SKNBI, will be available 24/7.

Electronic banking services are available from most banks. There is no national electronic banking standard in Indonesia, so companies use banks’ proprietary services. Online and mobile banking services are available. Online banking adoption is low, but mobile banking usage among smartphone users is high. Regulations for digital banking are expected by end-2021 and will open up banking to the 50% that are unbanked.

Short term investments

Interest payable on credit balances

  • Interest-bearing current accounts are permitted in Indonesia. Accounts in domestic and foreign currency are available.

Demand deposits

  • Demand deposits denominated in IDR or major foreign currencies are available for terms up to one year.

Time deposits

  • Time deposits are available in IDR or major foreign currencies with terms ranging from one month to two years.

Certificates of deposit

  • Domestic banks issue certificates of deposit (CDs) with terms ranging from one week to 12 months. CDs can be issued paying fixed or variable interest.

Treasury bills

  • The central bank issues short-term government bills (SPN) for terms of one, three, six months and 12 months. Islamic T-bills (SPN-S) are issued with a six-month maturity.

Commercial paper

  • Domestic commercial paper is not commonly issued in Indonesia.
  • Maturities range from one week to 12 months.

Money market funds

  • Domestic money market funds are popular short-term investment instruments.

Repurchase agreements

  • Repurchase agreements with maturities of one, three and six months are commonly available in Indonesia.

Bankers acceptances

  • Banker’s acceptances are not commonly used in Indonesia. Where available, they are generally based on an underlying trade transaction such as financing imports.

BNP Paribas Trade Finance Capabilities

Documentary credits
Documentary collections

International trade

  • As a member of the Association of Southeast Asian Nations (ASEAN), Indonesia has entered into the ASEAN Trade in Goods Agreement (ATIGA) between member states (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam). Indonesia is also a member of the ASEAN Free Trade Area (AFTA) and is committed to reducing and eliminating tariffs between members.
  • As a member of the Asia-Pacific Economic Cooperation (APEC) forum, Indonesia has agreed to liberalise trade and investment rules between members.
  • As a signatory to the D-8 Preferential Tariff Agreement, Indonesia has agreed to reduce tariffs on trade between member states (Bangladesh, Indonesia, Iran, Malaysia, Egypt, Nigeria, Pakistan and Turkey).