Buying a New Car in Indonesia

Information on the paperwork and processes involved when buying a new car in Indonesia...

New cars can be purchased with cash, car lease arrangement or bank loan. Popular brands in Indonesia include Toyota, Honda, Nissan, General Motors, Ford, Mazda, Proton, Suzuki, Daihatsu, BMW, Lexus and Peugeot.

Once the buyer has chosen a model, they must make a down payment of approximately 20 percent of the purchase price. If the car is to be financed, the buyer needs to obtain the initial approval from the bank or leasing company for the loan purchase arrangement. Normally instalments are limited to five years or 60 months. The longer the instalment term, the higher the interest is.

After the down payment is made, the dealer generally provides the buyer with a vehicle order sheet (Surat Pesanan Kendaraan - SPK) which details the car model and the price after any discount.

The buyer needs to provide the following:

  • Photocopy of citizen identity card (Kartu Tanda Penduduk - KTP) for Indonesian citizens
  • Photocopy of passport and stay permit (KITAS) for foreigers

The seller generally takes care of the registration and needs to provide the following documents after the purchase:

  • Payment receipt (two weeks after the date of purchase)
  • Invoice (two weeks after the date of purchase)
  • Vehicle registration number certificate or STNK - Surat Tanda Nomor Kendaraan (two weeks after the date of purchase)
  • Vehicle ownership book or BPKB - Buku Pemilik Kendaraan Bermotor (no later than six months after the date of purchase)
  • Instruction manual
  • Service book


In Indonesia, vehicle insurance is not mandatory except for vehicles licenced to carry public passengers, and commercial trucks. There is, however, disagreement about whether vehicle insurance is mandatory for passenger vehicles and motorbikes. However, when buying a new car, normally dealers offer car pricing options that include or exclude insurance. Car insurance is mandatory for purchasing a car on a loan arrangement. In this case the vehicle ownership book (BPKB) is retained by the dealer until all the payment due is completely settled.