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Buying a Used Car: By Indonesian Law, it is illegal to import used cars, however some unscrupulous importers do import what they say are new cars but are actually 1 or even 2 year old cars with the odemeter reset close to zero. Be cautious when buying imported cars. It is a common practice in Indonesia that when a car is sold, the car registration is left under the name of the original owner. This is done to avoid paying ongkos balik namaor change of ownership fee, which is quite costly (the costs are listed in a table at the department that is based on the year and model of the car). By explaining these procedures we are not encouraging you to avoid paying this tax. It's just that you should be aware of this common practice and therefore understand why the paperwork for used cars is so complicated as a result of this practice. Your sponsoring company will undoubtedly have a policy and recommendations on how you should handle this situation. This common practice makes the actual invoice a very important document. If there is an incident involving a car, the kwitansi pembayaran/invoice will be necessary to prove the current ownership of the vehicle. You would not want to be held liable for an accident which involved a car you used to own; your copy of the invoice would prove the car was no longer yours. When a customer wants to buy a used car they should present: 1. KTP (Kartu Tanda Penduduk/Identity card) Depending upon the selling party they may or may not accept other forms of identification (i.e., passports or KITAS/Limited Stay Permit Card). 2. Cash or means of financing the vehicle. (Please refer to the financing notes under . Buying a New Car. ). Upon completion of the transaction the customer should receive the following documents: a. STNK (Surat Tanda Nomor Kendaraan/Registration) b. BPKB (Buku Pemilik Kendaraan Bermotor/Proof of ownership book) c. Faktor (original invoice for the car when it was purchased from the manufacturer) d. Kwitansi Blangko - 3 lembar (3 copies of a receipt) The first copy of the kwitansi blangko should contain the following information: a. Jenis Mobil (type of car) b. Warna (color) c. Nomor Polisi (license plate number) d. Nomor Chasis (chasis number) e. Nomor Rangka (frame number) This first copy should be signed by the person whose name appears in the BPKB on top of a Rp 6,000 meterai (Rp 6,000 tax stamp). The second and third copy of this receipt should be left blank except for the signature of the original owner, whose name appears in the BPKB. No meterai is required. These copies would be required by the Department of Motor Vehicles in the event that the name in the BPKB was to be changed. It is very important to have these three copies! Otherwise it may be difficult to resell your vehicle in the future. In doing the research for this piece we could not find out why the blank copies were needed as none of the Indonesians we talked to had ever balik nama. 5. Kwitansi or Tanda Terima (receipt for the transaction) This receipt will include the amount of money that was paid for the vehicle.

6. Photocopy of KTP (identity card) (and in the case of a foreign resident the KITAS) for the person whose name appears on the BPKB. This will be needed to renew the yearly registration for the vehicle (STNK). Pay close attention to the expiration date on the KTP. If the KTP is expired, it can not be used to renew the annual STNK. You will then need to track down the owner and get a photocopy of his valid KTP. Remember: Be careful if you're buying a used car direct from the previous owner. Get photocopies of all the documents and go to the police to check to make sure the car has never been stolen. Don't let the owner come with you; if he's geniune he won't be offended. Ask the police for a report showing you've checked the ownership history of the car. You'll have to pay an unofficial fee but it's well worth it. Renewing your STNK Again, your agent, or a Biro Jasa, can assist you in your yearly renewal of your vehicle. s STNK. You will not receive a notice of the expiration of this document, your driver should help you to remember when it expires. Be careful not to let this document expire as there is a heavy fine if you are caught driving your car with an expired STNK. This fine is based on the make and year of your car. It could range from Rp 40,000 for an older economy sedan to as much as Rp 300,000 or more for a newer model Mercedes. The amount for renewing the STNK appears on the back of the STNK document. Upon receipt of your new STNK you will be given stickers which can then be applied to your old license plates. If you want to renew your STNK yourself (instead of going through a Biro Jasa), go to: Direktor Lalu Lintas Bagian STNK Polda Metro Jaya (Komdak) Jl. Jenderal Sudirman Jakarta Selatan Bring with you: 1. Your BPKB 2. The current (valid) KTP of the person whose name appears on the STNK. 3. The required payment. Endnote: As you can see this whole scenario is a nightmare for most foreigners. Long term expats here will tell you that this is a deliberate ploy by the Govt to extract extra payments from anyone who can afford to pay. This is typical of all govt regulated industries. What we can do? We can handle all the paperwork for you and give you a fully legal and easy to re-sell vehicle that is properly insured and maintained. Email us for more information Good Luck! Komang Edy Anjaya President Director

Buying a Used Car in Indonesia by Indomotors

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