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What is SKN For Payments To Indonesia?

June 20, 2024July 15th, 2024No Comments
Mariel Rhetta
Content Strategist at Rutland FX
Published on: (Updated ) - minute read

When sending Indonesian Rupiah (IDR) to Indonesia from the UK, you can use SKN (Sistem Kliring Nasional, meaning National Clearing System), a payment method facilitated by Bank Indonesia. While SKN is typically used for domestic payments within Indonesia, it can also handle international transactions. This happens when the Payment Service Provider (PSP) in the UK partners with a local bank in Indonesia or a third-party provider to complete the domestic leg of the transfer.

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What is SKN?

SKN, short for Sistem Kliring Nasional, is a national clearing system in Indonesia. It is designed to facilitate the efficient and secure exchange of payment orders between banks. The system is operated by Bank Indonesia, the central bank of Indonesia, ensuring a reliable infrastructure for clearing and settling interbank payments.

Background and Operation

  • Operated by: Bank Indonesia
  • Inception: SKN was introduced as part of Indonesia’s efforts to modernise its payment system. It began operations in 2005, aiming to provide a robust platform for clearing domestic interbank payments.
  • Purpose: The primary objective of SKN is to enhance the efficiency and security of the country’s payment system. It allows for the electronic transfer of funds and settlement of payment orders, reducing reliance on physical instruments like checks.

Key Features

  • National Coverage: SKN covers the entire Indonesian banking system, connecting various banks across the country.
  • Clearing Cycles: The system operates multiple clearing cycles throughout the day, enabling timely processing of payment orders.
  • Transaction Types: It supports various types of transactions, including credit transfers and direct debits, catering to both individual and corporate clients.
  • Security: As an initiative of Bank Indonesia, SKN adheres to stringent security protocols, ensuring the integrity and confidentiality of transactions.

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.


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 crucial 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.