The Best Way to Send Money to Parents in Indonesia from Singapore: Digital vs. Traditional

The need to send money to parents in Indonesia from Singapore routinely is a top priority for many Indonesian workers and students there. However, this process is often hampered by high costs, unfavorable exchange rates, and slow processing times.

Are you tired of paying expensive Singapore to Indonesia money transfer fees and waiting days for the funds to arrive? Conventional bank transfer methods often impose hidden fees that eat away at the final amount received by the family back home. Don’t let your hard-earned money disappear halfway!

The solution lies in utilizing modern digital platforms. This article is your complete guide that will dissect the most efficient, fastest, and cheapest methods, helping you choose the best Singapore remittance platform to maximize every dollar you send.

Understanding Money Transfer Types: Traditional vs. Digital

Cross-border money transfer, or remittance, has a different mechanism than regular local transfers. Understanding the two main methods is key to making smart decisions.

Traditional Method (Conventional Banks)

This method involves major banks in Singapore (like DBS, UOB, OCBC) using the SWIFT network.

• Pros: Highly guaranteed institutional security, suitable for transfers with very high nominal limits.
• Cons: The process is time-consuming (generally 2 to 5 business days) because it involves intermediary (correspondent) banks. Transfer fees are high, and there are often hidden fees (correspondent bank fees) deducted from the sent amount.

Digital Method (Fintech/Remittance Apps)

This method uses financial applications and fintech companies that specialize in remittances (like Wise, Instarem, etc.). These platforms facilitate transfers digitally through their local accounts in Singapore and Indonesia.

• Pros: Exceptional speed (real-time or a maximum of 1 business day). Fees are very transparent and low.
• Cons: Daily or monthly transfer limits are lower than banks, and it requires a strict initial identity verification (KYC) process.

Read Also: How to Transfer Salary from Singapore to Indonesia (SGD to Rupiah) Without Maximum Deductions

Comparison of the 5 Best Methods for Sending Money to Indonesia

The best method depends on your priorities: speed, cost, or transfer amount. Here is a comparison of the options available in the Singapore market.

Dedicated Remittance Services (Fintech Apps)

This is the most recommended solution for sending money to parents in Indonesia from Singapore routinely. These platforms are built to optimize international transfers.

• Advantage: These platforms generally offer SGD to IDR transfer rates based on the mid-market rate, which is much more favorable than bank rates. The low flat fee makes the total cost very transparent.
• Speed: The majority of transfers are completed instantly (real-time) or within hours.

Conventional Bank Transfer (via SWIFT)

Although expensive, this remains the main choice for transfers of very large amounts (above S$10,000 or the fintech daily limit). You can use Singapore to BCA money transfer services or other major banks through your bank’s mobile banking app.

• Disadvantage: Hidden fees and slow speed still need to be considered.

Official Money Changers

Some official money changers in Singapore also offer money transfer services to bank accounts in Indonesia.

• Process: You must go in person to deposit SGD cash.
• Disadvantage: Requires physical time to visit, and is only effective for small transfers due to the security risk of carrying cash.

International E-Wallets (If Supported)

Some e-wallets or payment apps now support cross-border transfers directly to e-wallets or bank accounts in Indonesia.

• Disadvantage: Transfer limits are very low and usually not suitable for routine transfers of a significant nominal amount.

Critical Factors: Cost, Exchange Rate, and Speed

These three factors are the main determinants that will save you money in the long run.

Transfer Fees

It’s important to compare the fee structure:

• Flat Fee: A fixed fee, no matter how much money you send (common in fintech). This is the most transparent and efficient for small-to-medium transfers.
• Hidden Fees: Banks often charge SWIFT fees or deduct correspondent bank fees. These Singapore money transfer hidden fees should always be avoided.

Exchange Rate

The exchange rate is the biggest hidden cost that is often unrecognized.

• Mid-Market Rate: This is the mid-rate used by fintech (the fairest rate without markup).
• Customer Rate: The buy/sell rate used by the bank, which usually includes a significant markup.

Always check the real-time SGD IDR rate comparison on a fintech platform before transferring. A difference of 10–20 points in the exchange rate per SGD can result in savings of hundreds of thousands of rupiah per month. Choosing how to get the best rate is key to maximizing your remittance.

Transfer Speed

Transfer speed is divided into three main categories:

• Instant (Real-time): Funds arrive within minutes. Generally offered by fintech integrated directly with the local payment system in both countries.
• Same-Day: Funds arrive within a few hours (if done during business hours).
• Standard (1–5 business days): Generally SWIFT bank transfers.

Read Also: Sending Monthly Money Transfers from Singapore to Indonesia: Your Complete Guide to Best Rates and Fees

Security and Regulation Tips for Money Transfer

Low cost and high speed do not mean sacrificing security. Make sure you transfer legally.

Legality and License

It is crucial to choose a platform with an official license. In Singapore, make sure the service provider has a license from MAS (Monetary Authority of Singapore). A licensed platform guarantees your funds are protected and transfers are done in compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations. This is legal Singapore remittance.

KYC Verification

Legal service providers will require strict identity verification (KYC), especially for large transfers. This is a standard security procedure and must be followed.

Transaction Recording

Always record and save your transaction proof. This is important for personal bookkeeping and, if necessary, for future tax reporting in both Singapore and Indonesia.

Conclusion

For anyone who routinely sends money to parents in Indonesia from Singapore, cost efficiency is now a necessity. Choosing to continue using traditional banks with hidden fees and poor rates is an accumulated financial loss.

The best solution is to switch to a transparent, secure Fintech provider focused on the mid-market rate. By choosing a platform with an MAS license and comparing fees in real-time, you can ensure that every dollar you send provides maximum benefit to your family back home. Switch from traditional transfer methods now and enjoy financial efficiency at your fingertips!

Download Transfez App

Transfez App can help you transfer money abroad more quickly and efficiently. Jack Finance can also help your business in making transactions abroad. For those of you who want to send money to relatives who are abroad because they are studying, working, or traveling, Transfez will be ready to help. This app is available on Android as well as iOS.