Auto Sales Agreement Template for Indonesia

An Auto Sales Agreement is a comprehensive legal contract that governs the sale and purchase of motor vehicles in Indonesia. This document ensures your transaction complies with Indonesian law while protecting your rights as either a buyer or seller. Whether you're purchasing from a dealership, buying privately, or conducting a corporate vehicle acquisition, this agreement provides the legal framework necessary for a secure and compliant transaction.

When do you need this document?

You need an Auto Sales Agreement whenever you're buying or selling a motor vehicle in Indonesia. This includes purchasing new vehicles from authorized dealerships, buying used cars from private sellers, or conducting fleet acquisitions for business purposes. The agreement is also essential when financing is involved, as banks and financial institutions require proper documentation before approving vehicle loans. If you're trading in a vehicle as part of the purchase, this agreement helps document the complete transaction including the trade-in value and any additional payments required.

Key legal considerations

Under Indonesian law, your Auto Sales Agreement must include specific provisions to ensure legal validity and consumer protection. The vehicle description section must contain complete details including chassis number, engine number, and registration information as required by Government Regulation No. 55 of 2012. Payment terms should clearly specify the purchase price, payment schedule, and any financing arrangements. Warranty provisions must comply with consumer protection standards, including mandatory warranty periods for new vehicles and disclosure requirements for used vehicle conditions. The agreement should also address ownership transfer procedures, including the responsibility for handling registration changes with local transportation authorities. Risk of loss clauses determine when ownership and liability transfer from seller to buyer, which is crucial for insurance and legal purposes.

Legal requirements in Indonesia

Indonesian law imposes specific requirements on vehicle sales agreements to protect consumers and ensure proper vehicle registration. Under Law No. 22 of 2009 on Traffic and Road Transportation, the agreement must facilitate proper ownership transfer and vehicle registration procedures. The Indonesian Civil Code requires that contracts include clear identification of both parties, specific performance obligations, and consideration terms. Consumer Protection Law No. 8 of 1999 mandates that sellers provide accurate vehicle information, honor warranty commitments, and comply with dispute resolution procedures. The agreement must also accommodate Indonesia's vehicle inspection and certification requirements, ensuring the vehicle meets safety and environmental standards before transfer. Additionally, if financing is involved, the agreement must comply with financial services regulations and clearly disclose all terms and conditions of the credit arrangement.