Freelancing in Indonesia presents immense opportunities. The industry continues to grow rapidly due to the country's large and tech-savvy population and increasing global demand for remote work. Many freelancers work with international clients who pay in currencies like USD, EUR, or GBP. Hence, one major challenge for Indonesian freelancers is managing foreign exchange (FX) transactions. Fluctuating exchange rates, high transaction fees, and currency conversion losses can significantly reduce earnings.

To maximise income and financial stability, freelancers need to adopt smart FX-saving strategies. This article explores proven ways for Indonesian freelancers to save on foreign exchange costs, optimise their earnings, and secure their financial future.

Also read: How freelancers in Indonesia can switch from traditional banks to Grey

FX challenges for freelancers in Indonesia

While Indonesia’s economy continues to experience steady growth, the rupiah (IDR) remains volatile relative to major currencies such as the USD, GBP, and EUR. This volatility can lead to unpredictable income when converting earnings to IDR. Here are the major FX obstacles freelancers in Indonesia experience:

• High transaction fees: Banks and some payment platforms charge fixed fees or percentages per transaction.
• Poor exchange rates: Many platforms offer rates below the mid-market rate, leading to losses during conversion.
• Currency volatility: The rupiah’s fluctuations against major currencies can reduce the value of earnings if not timed properly.
• Delays in transfers: Slow processing times can expose freelancers to unfavourable rate changes.

Also read: Grey vs. local banks: The best currency exchange choice in Indonesia

FX-saving strategies for Indonesian freelancers

By addressing these challenges, freelancers can minimise losses and maximise their income. Here are some proven strategies to help you get ahead of your FX troubles.

Choose the right payment platform

When shopping for the right payment platform, consider its rates, processing speed, and accessibility. Many Indonesian banks charge fixed fees and add a markup to exchange rates, which can be costly for frequent small transactions. Meanwhile, emerging digital solutions like Grey offer affordable transaction fees. Compare them for each transaction to ensure you’re using the cheapest option. Consider banks that offer a fixed rate if you are converting a large sum of money at once.

Time your currency conversions wisely

The IDR’s value can fluctuate significantly due to global economic trends, domestic policies, or market sentiment. Converting at the wrong time can lead to substantial losses. Leverage Grey’s real-time exchange rate monitoring to know the best time to convert and the time to hold.

Hold funds in multi-currency accounts

Platforms like Grey and Wise allow you to hold funds in foreign currencies (e.g., USD, GBP,  or EUR) without immediate conversion. Multi-currency accounts enhance your financial flexibility by allowing you to receive payments and manage multiple currencies without the need for conversion. You can pay for international services and shop on global online marketplaces directly.

Also read: How freelancers in Indonesia can receive payments from the US, UK & EU clients

Withdraw in lump sums

The more you convert, the more you spend. Instead of withdrawing every time you need money, estimate your expenses within a reasonable timeframe and convert enough to last you for that period. For instance, converting $1,000 at a time attracts lower fees than four separate $250 transfers.

Watch out for hidden fees and markups

Some traditional banks lack transparency in their pricing. While they try to appear like a more affordable option, they end up charging more thanks to hidden fees and markup.

Avoid double conversions

Some platforms or banks convert your earnings to USD before converting to IDR. This adds an extra layer of fees. Ensure your payment platform and bank support direct conversions to IDR to prevent this issue.

Consider adding an FX buffer to your invoice

When estimating project costs, factor in how much you might lose due to transaction charges and conversion fees, and add this to the bill.

Managing FX as a freelancer in Grey

Learning FX-saving strategies is essential for freelancers to maximise their earnings. By choosing cost-effective payment platforms, timing currency conversions strategically, and batching conversions, you can significantly reduce losses to FX.

Grey helps freelancers navigate the murky waters of currency conversion by offering multi-currency accounts, competitive exchange rates, virtual USD cards, and low transaction fees.

Get started on Grey today to reduce how much you lose to FX.

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