Can Foreigners Own Vehicles in Indonesia?

Many foreign nationals residing in Indonesia frequently inquire whether they are permitted to own a car or motorcycle under their own name. According to HukumOnline and relevant Indonesian police regulations, the answer is yes — foreigners may legally own motor vehicles in Indonesia, provided they fulfill the applicable requirements.

This is supported by several provisions in Indonesian National Police Regulation Number 7 of 2021 on the Registration and Identification of Motor Vehicles (Perpol 7/2021), including Article 1 point 1, Article 2 paragraph (1), Article 2 paragraph (2), Article 10 paragraph (6), and Article 5 paragraph (1).

Perpol 7/2021 defines motor vehicle registration and identification as a police function intended to verify a vehicle’s origin, roadworthiness, ownership status, and operational legitimacy (Article 1 point 1). Every motor vehicle operating in Indonesia must be registered (Article 2 paragraph (1)). The regulation further outlines several types of registration activities, including:

• Registration of new motor vehicles,
• Registration for changes in vehicle identity or owner identity,
• Renewal of registration, and
• Verification and validation of vehicle documents (Article 2 paragraph (2)).

Under Article 4 paragraph (1) of Perpol 7/2021, motor vehicle registration may be carried out for:

• Individuals,
• Government bodies,
• Business entities,
• Foreign state representatives,
• International organizations, and
• Foreign legal entities with permanent offices in Indonesia.

Because “individuals” are included, foreign nationals fall within the group permitted to register and own vehicles.

Required Documents for Foreign Vehicle Owners

To register a new motor vehicle, Perpol 7/2021 requires several mandatory documents, including:

1. Type Test Registration Certificate (SRUT)
2. Valid proof of ownership
3. Physical inspection results
4. Proof of the owner’s identity
5. Vehicle Identification Number (VIN)
6. Power of attorney if submitted by a representative (Article 10 paragraph (1))

For foreign nationals, identity document requirements depend on residency status. Foreigners holding a Permanent Stay Permit (KITAP) must provide their KITAP and identity card. Those with a Limited Stay Permit (KITAS) must submit a residence statement along with their KITAS, as stipulated under Article 10 paragraph (6).

Once registration is approved, the police will issue:

BPKB (Vehicle Ownership Book)
• STNK (Vehicle Registration Certificate)
• TNKB (License Plate Number)

These items serve as the official proof of ownership, as stated in Article 5 paragraph (1).

With the proper documentation required, foreigners can confidently purchase and register a car or motorcycle under their own name while living in Indonesia.

 

Source: hukumonline.com

Photo Credit: via https://www.group1cars.co.za/

Latest Article
Can Foreigners Own Vehicles in Indonesia?
Many foreign nationals residing in Indonesia frequently inquire whether they are permitted to own a car...
Indonesia Launched First Campus Immigration Point in Semarang
Indonesia has officially launched its first-ever Campus Immigration Point at Diponegoro University (UNDIP)...
Indonesia Among Top 10 Rainiest Countries in the World
Indonesia Among Top 10 Rainiest Countries in the World As heavy rain intensifies across many regions,...
Indonesia Eyes 10,000 Jobs from China-Backed Coconut Projects
Indonesia is advancing an ambitious plan to strengthen its coconut downstream industry, backed by major...
Indonesia Launches World’s First Seamless Immigration Corridor
Indonesia has officially become the first country in the world to deploy a biometric “seamless corridor”...

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Contact Our Consultants

[wpforms id=”43785″]

Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.