Swift Code Bank in Indonesia: Things You Need to Know

Having been around and used since the 1970s, the SWIFT Code is a technology in the banking world to deal with financial activities around the globe. It has the ISO standard for international money transfer transactions. Still, what is a SWIFT Code bank? How does it actually work? And, what are some examples we can find in our country? 

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Swift Code – What is it?

When we talk about SWIFT Code, it also implies the so-called BIC Code. As part of the ISO 9326 standards, we use this code to make any international payment or money transfer faster and more secure. 

SWIFT is short for the Society for Worldwide Interbank Financial Telecommunication. Meanwhile, BIC stands for Bank Identifier Code. The system is a communication network that provides a standardized and secure method for sending funds worldwide. 

We use this SWIFT system to verify the identity of a bank or other financial institutions, especially when doing financial transactions internationally. This code offers security, ensuring your money is sent to the right bank account.  

Also known as SWIFT numbers, the code consists of eight (8) to eleven (11) characters (letters and digit numbers). We need it to identify bank branches or other payment providers all over the world when you want to send funds abroad via the SWIFT network. 

How Does It Work?

The above 8-to-11 characters of the SWIFT Code contain specific details for further validation of the bank, the location of the bank branch, the country of origin, etc. Let's look at the following general breakdown of an example of a SWIFT Code.

• The first 4 characters (in letters only) indicate the bank code name (the financial institution providing banking services).
• The subsequent 2 characters (in letters) are for the country code (for example, 'ID' for Indonesia).
• The 2 characters after are for the code of the location in letters and numbers (the passive participant will have "1" in the second character).
• The last 3 or 4 characters are optional for branch office code in letters and/or numbers. 

The Mechanism

What is a SWIFT Code bank mechanism? A transaction using a SWIFT Code will take place when the sender (the sending bank) submits a transfer or payment request to the receiver (the receiving bank). Those who can make those requests can be private customers or companies wishing to transfer money overseas. 

Upon those requests, the SWIFT system will conduct a process of authentication to ensure that the code used exists. Once the bank authentication process is complete, the transfer or payment process will run immediately and securely. 

Swift Code in Indonesian Banks – 2 Examples

The following are some examples of SWIFT Codes for banks in Indonesia. 

SWIFT Code for Bank Mandiri

In general, the SWIFT Code for Bank Mandiri will be in 8 characters, namely 'BMRIIDJA'. This code begins with the bank code name, 'BMRI' for Bank Mandiri, followed by the country code, 'ID'. The next two characters indicate the location, i.e., 'JA'. 

As for additional or optional codes, it is usually the code of the branch office where the account number was issued or that handles the transactions. 

You can adjust the code according to the bank's branch office. For example, for a transaction regarding a custodian service, hence, the SWIFT Code will be 'BMRIIDJACUS'.

SWIFT Code for Bank BNI

The second example is the SWIFT code for Bank BNI that usually goes with 'BNIAIDJA'. Similarly, the first 4 characters, 'BNIA', is for the bank code name, followed by 'ID' for the country code, and the last 2 characters, 'JA', are for the location code. 

The above 8-character code is usually enough for overseas fund transfer transactions. Still, sometimes, the process will also ask you to include the code for the bank branch office. 

Similar to Bank Mandiri, you can add or adjust the code for the branch office by asking or looking for it on Bank BNI's official website. 

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There is also the latest alternative when you think using SWIFT Code is too bothersome. It is none other than Flip Globe, an application that makes inter-state fund transfer more practical and time-saving. 

Still, from the above explanation, we can answer and understand better what is a Swift Code bank, especially for doing inter-state fund transfer transactions. The system will not only simplify the process but also make it more secure.