Mariel Rhetta

Content Strategist at Rutland FX

Published on: (Updated ) - minute read

When sending money to Indonesia in their local currency, the Indonesian Rupiah (IDR), you may have come across the term SKNBI, or Sistem Kliring Nasional Bank Indonesia. In this article, we’ll explore what SKNBI is and the role it plays in both cross-border and domestic transactions to or within Indonesia.

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What is SKNBI?

SKNBI, which stands for Sistem Kliring Nasional Bank Indonesia or “National Clearing System of Bank Indonesia” in English, is a payment rail in Indonesia used for processing both electronic and paper-based payments, including Funds Transfer Services, Paper-Based Debit Clearing Services, Regular Credit Services, and Regular Debit Services. It is operated by Bank Indonesia, the central bank of Indonesia.

Although SKNBI is primarily used for domestic payments within Indonesia, it can also facilitate international payments to Indonesia. This is possible when a payment service provider partners with an Indonesian bank or a third-party provider that can complete the domestic leg of the transfer.

Making Payments to Indonesia in Indonesian Rupiah (IDR)

If you plan to make a payment to Indonesia with Rutland FX, here’s what you need to know:

Currency Conversion

You can convert funds from major global currencies to Indonesian Rupiah (IDR) with Rutland FX. Supported conversion currencies include:

US Dollar (USD)
UK Sterling (GBP)
Euro (EUR)
Australian Dollar (AUD)
Canadian Dollar (CAD)

Is Same-Day Settlement Available?

While same-day settlement is available, it can be easy to miss the same-day cut-off due to time zones. To ensure same-day settlement of IDR, it’s best to communicate this with your account manager first; otherwise, it will be a next-day settlement.

Are There Any Correspondent Bank Charges?

Currently, there are no deductions from the payment being sent. The recipient in Indonesia receives the full payment amount, ensuring transparency and efficiency in the transaction process.

Restrictions

For payments to Indonesia, the maximum transaction size is IDR 350,000,000. If you need to send more than this amount, you have two options:

Settle the Transaction and Book Another: After settling one transaction, you can book another to send additional funds.
Prefund Your Account: Prefund your Rutland FX account to ensure you can handle larger total transfers by splitting them into multiple transactions.

Can I Recall or Trace an IDR Payment?

Currently, the SKN network does not support the ability to trace or recall payments once they have been initiated. This means that once an IDR payment is sent, it cannot be easily reversed or tracked through the system.

This limitation is important to consider when making payments, as it highlights the need for accuracy in the payment details provided. Double-checking the beneficiary’s information and ensuring all details are correct before submitting the payment is required to avoid any issues.

For businesses, it is advisable to have a thorough verification process in place for all payment instructions to mitigate the risk of errors. In the event of a payment error, the only recourse may be to contact the beneficiary directly and request a return of funds, which can be a time-consuming and uncertain process.

Still not sure?

If you are still unsure or have any further questions, please call us on 0203 026 0112 or request a callback below to discuss your requirements.