Learn How To Buy U.S. Stocks In Indonesia

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Here’s how you can buy U.S. stocks in Indonesia:

Step 1. Choose a reliable broker that supports U.S. stocks trading.
Step 2. Open a trading account.
Step 3. Submit the W-8BEN form.
Step 4. Fund your account.
Step 5. Research and select stocks.

Have you ever thought about how Indonesians can invest in top U.S. companies like Tesla, Apple, or Google? Thanks to the rise of online brokers, anyone in Indonesia can now easily buy U.S. stocks without needing to leave the country.

With the help of online platforms, better currency exchange options, and favorable tax rules, investing in U.S. stocks is now much more accessible. Whether you’re just starting or looking to grow your portfolio, this guide will help you choose the right broker and make your first trade. Let’s explore the global investment opportunities available to you.

Steps to begin investing in U.S. stocks from Indonesia

Investing in U.S. stocks from Indonesia is straightforward if you follow the right steps. Here’s a complete breakdown of how to start.

Selecting the right brokerage

Your broker is your gateway to the U.S. stock market. Indonesian investors can choose between:

Local brokers. Some Indonesian brokers offer access to U.S. stocks, but they usually have higher fees and limited stock options.

International brokers. Many brokers offer easy access to U.S. stock exchanges, often with lower fees and more tools to help you manage your trades.

Some of the top brokers for investing in U.S. stocks from Indonesia are:

Best brokers for investing in U.S. stocks from Indonesia
	Account min.	Withdrawal fee	Regulation level	Open an account
CapTrader	2,000	Varies	Tier-1	Open an account Your capital is at risk.
Wealthsimple		No charge	Tier-1	Open an account Via Wealthsimple's secure website.
UTEX	10	USDT (TRON) - 4 USDT USDT (Ethereum) - 10 USDT		Open an account Your capital is at risk.
Revolut		No charge up to a limit	Tier-1	Study review
Interactive Brokers			Tier-1	Open an account Your capital is at risk.

When choosing a broker, consider fees, ease of use, funding options, and available stocks.

Opening a trading account

Once you’ve chosen a broker, create an account by providing:

Personal details (name, address, and contact information).
Identity documents (KTP/passport and proof of residence).
Taxpayer ID (NPWP) - required by some brokers for tax reporting.

The approval process usually takes 1-3 days.

Completing the W-8BEN form

As a foreign investor, you must submit a W-8BEN form to reduce tax on dividends from U.S. stocks. This form:

Confirm your non-U.S. residency.
Lowers the dividend tax from 30% to 15% for Indonesians under the U.S.-Indonesia tax treaty.

Most brokers include this form in their registration process, so you just need to fill it out once.

Funding your investment account

To buy U.S. stocks, you need to convert IDR to USD and deposit funds into your broker account. Popular funding options include:

Bank wire transfers (may have high fees).
Credit/Debit Cards (instant but can be expensive).
E-wallets like PayPal and Skrill (fast and convenient).

Compare fees across different funding methods to avoid losing money on conversions.

Buying your first U.S. stock

Now that your account is funded, you’re ready to invest. Follow these steps:

Research companies. Check financial reports, stock trends, and industry news.
Decide how much to invest. Start small and diversify your portfolio.
Choose your order type. Market Order – buy at the current price; Limit Order – set a specific price for buying or selling.
Confirm your trade. Execute your order and track performance.

After purchasing, monitor your stocks and stay updated on market trends.

Why invest in U.S. stocks from Indonesia?

The U.S. stock market is the world’s largest, offering investors unmatched opportunities. Here’s why Indonesians should consider adding U.S. stocks to their portfolios.

Tap into global innovation. When you invest in U.S. stocks, you’re diving into industries like tech, healthcare, and clean energy — fields where big breakthroughs happen. It’s a chance to ride the wave of global progress.
Spread your risk. While the Indonesian market can be unpredictable, U.S. stocks offer a chance to balance out your investments by exposing you to other stable, growing markets.
Benefit from the U.S. dollar’s strength. The U.S. dollar is one of the world’s most stable currencies. By investing in U.S. stocks, you're not just owning shares; you're also gaining exposure to a currency that holds its value over time.
Invest in top global companies. With U.S. stocks, you get a piece of some of the world’s most successful companies — think Tesla, Amazon, and Google — that continue to set the pace for global industries.
Enjoy tax benefits. Thanks to tax agreements between Indonesia and the U.S., you’ll likely pay lower taxes on U.S. dividends, meaning more money stays in your pocket.

Understanding the U.S. stock market landscape

Before diving into investments, you need to understand how the U.S. stock market operates. Here’s what every Indonesian investor should know.

1. Major U.S. stock exchanges

The U.S. has two main stock exchanges:

New York Stock Exchange (NYSE). Home to established companies like Coca-Cola, Visa, and Berkshire Hathaway.

NASDAQ. A hub for tech and growth stocks like Apple, Tesla, and NVIDIA.

Both exchanges offer thousands of stocks, but NYSE is known for stability, while NASDAQ is where you’ll find high-growth tech companies.

2. Trading hours & time zones

The U.S. market opens at 9:30 AM Eastern Time (ET) and closes at 4:00 PM ET. In Indonesia (WIB time).

Market opens. 9:30 PM (WIB)
Market closes. 4:00 AM (WIB)

This means you’ll be trading at night. If staying up late isn’t an option, use limit orders to set buy/sell prices in advance.

3. Currency exchange considerations

Since U.S. stocks are bought in USD, you'll have to exchange your IDR for dollars before you can invest. Keep in mind that exchange rates change, which means the amount you pay for stocks can vary. Some brokers provide better conversion rates than banks, so it’s a good idea to shop around before you deposit money into your account.

4. Market volatility & economic impact

The U.S. market is influenced by:

Federal Reserve policies. Interest rate hikes affect stock prices.
Earnings reports. Company financial results can trigger price swings.
Global events. Trade policies and geopolitical issues impact market sentiment.

Tax implications for Indonesian investors

Understanding tax obligations is crucial when investing in U.S. stocks. Here’s what Indonesian investors need to know about U.S. and local tax rules.

U.S. dividend withholding tax

If you invest in U.S. stocks that pay dividends, the U.S. government automatically withholds 30% of your dividend earnings. However, Indonesia has a tax treaty with the U.S., allowing investors to reduce this rate to 15% by submitting the W-8BEN form through their broker.

Example: If a U.S. stock pays you $100 in dividends, without the W-8BEN form, you’d receive only $70. But with the form, you’d get $85 instead.

Capital gains tax in Indonesia

In Indonesia, the capital gains tax on shares is surprisingly low, with only a 0.1% tax on profits from shares listed on the Indonesia Stock Exchange (IDX). That’s a great deal compared to other countries with much higher rates. But if you're dealing with non-listed shares or foreign investments, the tax rate can go up, so it's important to know the details. If you’re selling property, though, the tax rate jumps to 5% for individuals, and it might even be higher if it’s part of a business transaction.

The Indonesian tax authorities may not automatically track overseas investments, but it’s your responsibility to declare earnings to avoid issues. Consult a tax professional for accurate reporting.

U.S.-Indonesia tax treaty benefits

The U.S.-Indonesia tax treaty helps prevent double taxation, ensuring you don’t pay tax twice on the same income. However, you may still need to declare your U.S. stock profits when bringing money back to Indonesia.

Tips for successful U.S. stock investing

Investing in U.S. stocks from Indonesia can be profitable if you use the right approach. Here are some proven strategies to help you succeed.

Diversify your holdings

It’s always better to avoid putting all your money into a single stock. The U.S. market has a wide range of opportunities across sectors like tech, healthcare, consumer products, and finance. By diversifying your investments, you lower the risk and help secure more stable returns in the long run.

For example, while tech companies tend to have high growth potential, companies in more defensive sectors, like healthcare and consumer goods, can offer more stability when the market faces rough times.

Stay updated with market news

Stock prices move based on news, earnings reports, and economic policies. Follow financial updates from sources like Bloomberg, CNBC, and Yahoo Finance to stay informed.

Pay attention to:

Federal Reserve policies (interest rate changes).
Company earnings reports (quarterly updates).
Global events (geopolitical tensions, trade agreements).

Adopt a long-term perspective

Many beginners get nervous when stock prices drop and make the mistake of selling off their shares. Instead of reacting impulsively, it’s better to stay focused on long-term growth. Historically, markets like the S&P 500 have delivered strong returns over time, proving that patience often pays off.

Instead of worrying about short-term price changes, look for companies that are built for long-term success. High-growth stocks in sectors like tech are great for capitalizing on innovation, while more stable, defensive stocks can offer peace of mind when the market gets turbulent.

Use dollar-cost averaging (DCA)

Instead of investing a large sum all at once, consider dollar-cost averaging — investing a fixed amount regularly, regardless of market conditions. This strategy lowers risk and smooths out price fluctuations over time.

For example, investing $100 every month in an S&P 500 ETF allows you to buy more shares when prices are low and fewer when prices are high, balancing out your overall cost.

Monitor your portfolio but avoid overtrading

It’s important to keep an eye on your portfolio, but don’t obsess over it. Trading too often can add unnecessary fees and lead to emotional decisions, which can hurt your investments in the long run.

Instead, take the time to review your portfolio every few months and make changes only when there’s a real reason — like changes in a company’s performance or shifts in the market.

Managing currency conversion and taxes

When investing in U.S. stocks from Indonesia, don’t just settle for brokers with low fees. Pay attention to how currency exchange impacts your investments. Fluctuations in the exchange rate can affect your overall returns, so look for brokers that offer competitive rates or even hold your funds in USD. This can help avoid extra costs every time you deposit or withdraw money, giving you more control over your earnings.

Additionally, be mindful of the tax side of things. While the U.S. taxes foreign dividends at 30%, Indonesia’s tax treaty with the U.S. can help reduce that rate. Understanding how this works will help you get more out of your dividends. If individual stock picking feels overwhelming, you might want to consider ETFs. These funds give you diversified access to U.S. stocks and can offer tax benefits, especially if held in the right accounts.

Conclusion

Investing in U.S. stocks from Indonesia is a smart way to diversify your portfolio and tap into the world’s largest stock market. With the right broker, strategy, and mindset, you can build long-term wealth by investing in companies that shape the global economy.

FAQs

Can Indonesians buy U.S. stocks?

Yes, Indonesians can buy U.S. stocks through international brokerage platforms that allow foreign investors.

What documents are needed to open an account?

Typically, you need a passport or KTP (Indonesian ID), proof of address, and tax identification number (NPWP) for verification.

How can I deposit money into my brokerage account?

You can deposit funds via bank transfer, credit/debit card, or e-wallets depending on the broker's available payment methods.

Can I invest in U.S. stocks with Indonesian Rupiah (IDR)?

No, you need to convert IDR to USD, which is usually handled by the broker when funding your account.

Team that worked on the article

Peter Emmanuel Chijioke is a professional personal finance, Forex, crypto, blockchain, NFT, and Web3 writer and a contributor to the Traders Union website. As a computer science graduate with a robust background in programming, machine learning, and blockchain technology, he possesses a comprehensive understanding of software, technologies, cryptocurrency, and Forex trading.

Having skills in blockchain technology and over 7 years of experience in crafting technical articles on trading, software, and personal finance, he brings a unique blend of theoretical knowledge and practical expertise to the table. His skill set encompasses a diverse range of personal finance technologies and industries, making him a valuable asset to any team or project focused on innovative solutions, personal finance, and investing technologies.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).