How to pay Chinese suppliers from Indonesia

How to pay a Chinese supplier from Indonesia: the short answer

An Indonesian business pays a Chinese supplier in three stages. It agrees the price and payment terms, it pays by bank transfer from an account in the company's own name to the supplier's company account, and it clears the goods with customs using documents that match the payment. The payment is usually a SWIFT transfer in US dollars, sent from the company's foreign currency current account (giro valas) or with dollars bought with rupiah. SWIFT is the international messaging network banks use for cross-border payments, and each bank has an 8 or 11 character SWIFT code. Since 2021, a company can also pay in Chinese yuan (CNY) bought directly with rupiah through banks appointed under the Indonesia and China local currency settlement framework.

The usual sequence for an order from China is:

1. Make sure the company holds an Import Identification Number (API) and any import license the goods need. The API is the identification number every importer must hold.
2. Agree the price, the payment terms and the Incoterm with the supplier, and get a proforma invoice. An Incoterm is a standard trade term, such as FOB or CIF, that sets who pays freight and insurance.
3. Pay the deposit by SWIFT, with the import information and the proforma invoice number in the transfer order.
4. Pay the balance against a copy of the bill of lading, or through a letter of credit or a documentary collection.
5. Submit the import documents electronically through the Indonesia National Single Window (INSW), usually before the cargo arrives.

This guide covers the Indonesian side of each step: the Bank Indonesia rules, the payment routes, published bank charges, the documents and the risks of paying through agents. For the supplier's side, such as how Chinese factories invoice and why many use a Hong Kong account, see our general guide on how to pay suppliers in China.

Bank Indonesia rules for paying suppliers abroad

Bank Indonesia (BI), the central bank, sets two rules that shape every payment to a supplier abroad: which currency may be used, and how import payments are reported.

The rupiah rule and its trade exception

Bank Indonesia Regulation No. 17/3/PBI/2015 on the Mandatory Use of Rupiah requires every person and company to use rupiah for cash and non-cash transactions in Indonesia. International trade transactions and foreign currency bank deposits are exempt. An Indonesian importer may therefore hold dollars in a bank and pay a Chinese supplier in dollars or yuan, but it must pay Indonesian parties, such as a local agent or forwarder, in rupiah. For non-cash transactions, BI's sanctions include a written warning, a fine of 1% of the transaction value capped at Rp1 billion, and a ban from taking part in payment traffic.

Reporting import payments

Import payments are called devisa pembayaran impor (DPI). BI Regulation No. 21/14/PBI/2019 required import payments above USD 10,000 equivalent to be reported to BI by the end of the third month after the month of the import notification. BI's questions and answers on its 2023 regulation on export proceeds and import payments state that the newer rules made no change for importers. In practice the bank collects the information when it sends the payment, as long as the transfer order carries the import details.

Buying dollars with rupiah

Banks ask for supporting documents, called the underlying, for larger purchases of foreign currency. Bank Mandiri's remittance page, for example, states that transfers above USD 100,000 need underlying documents. For an import, that means the proforma or commercial invoice and the contract.

Sources: Bank Indonesia Regulations No. 17/3/PBI/2015 and No. 21/14/PBI/2019; Bank Indonesia questions and answers on PBI No. 7 of 2023 (11 December 2023); Bank Mandiri, Mandiri Local Currency page. As published on 29 October 2026. Confirm current rules with your bank.

How the money reaches a Chinese supplier

Most Chinese suppliers invoice in US dollars, and many invoice through a Hong Kong trading company with a Hong Kong bank account. An Indonesian importer pays in one of the ways below. Whichever route you use, the beneficiary on the payment should be the company named on the proforma invoice.

Routes as described in this guide; local currency settlement from the People's Bank of China announcement on the framework with Bank Indonesia; supplier-side checks from PNC Bank's summary of China's goods trade foreign exchange rules. As published on 29 October 2026.

What the supplier's bank checks

China manages foreign exchange through the State Administration of Foreign Exchange (SAFE). As summarized by PNC Bank, a Chinese company must be on SAFE's list of companies with goods trade foreign exchange business, and banks cannot handle foreign exchange for companies that are not on it. The supplier's bank verifies each receipt using documents such as the contract, invoice and customs declaration. The same summary states that the remitter and the beneficiary must be the parties to the contract, the importer and the exporter. A payment from a company that is not on the contract can be held while the supplier's bank asks questions.

Paying in yuan through local currency settlement

Local currency settlement (LCS) lets banks convert rupiah directly into yuan, without passing through the US dollar. The framework between Bank Indonesia and the People's Bank of China took effect on 6 September 2021, under a memorandum of understanding signed on 30 September 2020, to promote local currencies in bilateral trade and direct investment. Banks appointed to quote rupiah and yuan directly are called appointed cross currency dealers (ACCDs). The People's Bank of China lists 12 on the Indonesian side:

• Bank Central Asia (BCA), Bank Mandiri, Bank Rakyat Indonesia (BRI) and Bank Negara Indonesia (BNI)
• Bank Maybank Indonesia, Bank Permata, Bank Danamon, Bank OCBC NISP and Bank UOB Indonesia
• Bank of China (Hong Kong) Jakarta Branch, Bank ICBC Indonesia and Bank China Construction Bank Indonesia

On the Chinese side it lists eight, including Industrial and Commercial Bank of China, Bank of China, China Construction Bank and Agricultural Bank of China. Ask your bank for a yuan quote and a dollar quote for the same invoice, and compare the total cost. The supplier then receives yuan without converting dollars.

Deposit, balance and payment terms

The payment term decides when money leaves Indonesia and what you hold in return.

Source: Helm Editorial Team, from the Bank Indonesia rules described above, as published on 29 October 2026.

A letter of credit (LC) is a bank's written promise to pay the seller when it presents documents that comply with the credit's terms. A documentary collection sends the shipping documents through the banks, and you receive them only after you pay or accept a bill of exchange. A supplier that has not traded with you before may ask for an LC on the first order and accept deposit and balance on later orders.

Treat the deposit and the balance as two payments against one order, and keep the same invoice number on both. If the order exceeds USD 10,000, the payments fall within BI's import payment reporting, so check that your bank has the import details for each one.

What it costs: published bank charges

Each Indonesian bank publishes its own charges. The table shows one bank's published charges for outgoing transfers abroad, as an example of the items to budget for on each order.

Source: Bank Mandiri, Mandiri Local Currency remittance page, as published on 29 October 2026. Cancellation and amendment fees apply but are not listed on the page. Other banks set their own charges.

On a USD 40,000 order paid as a USD 12,000 deposit and a USD 28,000 balance from a dollar account, a 1/8% provision comes to USD 15 and USD 35, plus Rp35,000 for each SWIFT transfer, and USD 25 for each payment sent with OUR charges. Three costs sit outside the tariff. The first is the exchange rate if you buy dollars or yuan with rupiah, so ask for the rate before you confirm. The second is correspondent bank charges deducted on the way to China when you do not choose OUR. The third is the supplier's own bank charge.

OUR means you pay all transfer fees and the supplier receives the full invoice amount. SHA shares the fees, so intermediary deductions come out of the amount. BEN puts all fees on the supplier. A payment that arrives short delays shipment while the supplier queries the gap, so OUR is usually worth the extra charge on a supplier payment.

Documents that tie the payment to customs

The bank, customs and the supplier's bank each match the same set of facts: the supplier's name, the invoice number and the value. Keep them identical across every document.

Sources: US International Trade Administration, Indonesia import requirements and documentation (last published 17 November 2025); Bank Indonesia Regulation No. 21/14/PBI/2019; Bank Mandiri, Mandiri Local Currency page. Typical sequence; requirements vary by bank and product. As published on 29 October 2026.

The US International Trade Administration's guide states that importers must hold a valid API and the appropriate import license, and that importers without an API may apply to the Ministry of Trade for a special import permit. It lists the minimum documents as the proforma invoice, commercial invoice, certificate of origin, bill of lading or air waybill, packing list and insurance certificate. Documents are submitted electronically through INSW, typically before the cargo arrives, and the Directorate General of Customs and Excise revised its customs declaration rules in Regulation No. PER-5/BC/2025. Goods may be subject to document checks and physical inspection.

A bill of lading is the document the shipping line issues when it receives the goods. Ask the supplier for a copy before you pay the balance, and check that the shipper, consignee and goods match the invoice.

Agents, cash and informal routes: what goes wrong

Some importers pay through an agent who collects rupiah in Jakarta or Surabaya and pays the supplier from an account in China, or through a stablecoin trader. The facts below are what an importer should weigh before using these routes.

• Paying a local agent in dollars breaks the rupiah rule. The international trade exception covers the payment to the supplier abroad. A payment to an agent in Indonesia is a domestic transaction, which must be in rupiah.
• The payment does not appear in your bank's records. A transfer made by someone else carries no import details from your company, so your bank cannot report it as your import payment.
• The supplier's bank may query it. China's rules expect the payer to be the party on the contract. A transfer from an agent's account is a payment from a third party.
• There is no trace. A SWIFT transfer from your own account carries a reference and can be traced through the banks. Cash handed to an agent cannot.
• Crypto is not a means of payment in Indonesia. On 25 May 2023 the Governor of Bank Indonesia stated that crypto is not a legal means of payment and that the rupiah is the only legal payment instrument, as reported by Bisnis.com.

Where Helm fits

Helm works with companies registered in Indonesia. Helm is a financial technology company, not a bank. Accounts are held with regulated partner institutions. A Helm account gives your company USD account details in its own name, with a US routing and account number that receives ACH, Fedwire and SWIFT payments.

For a business that buys from China, it works like this:

• Pay suppliers in USD. Send international payments by SWIFT from your company's own account to the supplier's USD account in China or Hong Kong, with the rate, fee and expected arrival shown before you send.
• Hold dollars for the balance. Keep the balance payment in USD so it is not converted on the day it falls due.
• Convert stablecoins. If a buyer abroad pays you in USDC or USDT, you can receive them and convert them to USD inside the account where your own legal position allows it, then pay the supplier by SWIFT.
• Finance the balance. Trade finance, such as supplier finance and working capital, is arranged case by case.

A Helm account sits outside Indonesia. Goods export proceeds must still reach an Indonesian bank under BI's rules, so the account does not replace your giro valas for that purpose. Confirm with your Indonesian bank how an import paid from an account outside Indonesia is reported to BI. Each account has a named account manager, and review questions are answered in writing within one business day. Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment.

A checklist for paying a Chinese supplier from Indonesia

• Check that the company's API and any import license for the goods are valid before you order.
• Get a proforma invoice and check that the seller on it is the company you will pay.
• Ask your bank for a dollar quote and, through an appointed bank, a yuan quote, and compare the total cost.
• Send each payment by SWIFT with charges set to OUR, with the import details and invoice number in the transfer order.
• Prepare underlying documents for transfers above your bank's threshold.
• Pay the balance against a copy of the bill of lading, or use a letter of credit for a new supplier.
• Pay local agents and forwarders in rupiah.
• Keep the SWIFT confirmations with the invoices, INSW submissions and shipping documents for each order.

For how other importers organize supplier payments, see the importers page.

Questions

References

1. Bank Indonesia: Regulation No. 17/3/PBI/2015 on the Mandatory Use of Rupiah
2. Bank Indonesia: Regulation No. 21/14/PBI/2019 on export proceeds and import payments
3. Bank Indonesia: Questions and answers on PBI No. 7 of 2023 on export proceeds and import payments
4. People's Bank of China: PBC and BI launch a framework for local currency settlement
5. Bank Mandiri: Mandiri Local Currency remittance
6. US International Trade Administration: Indonesia import requirements and documentation
7. PNC Bank: Navigating China's regulations on foreign exchange for goods trade
8. Bisnis.com: Bank Indonesia on crypto assets as a means of payment (25 May 2023)

This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.