Car Assignment Agreement Template for Indonesia

A Car Assignment Agreement is a legally binding document that facilitates the transfer of vehicle ownership rights in Indonesia. This agreement ensures compliance with Indonesian transportation laws, particularly Law No. 22 of 2009 on Traffic and Road Transport, while protecting both parties' interests during the vehicle transfer process.

When do you need this document?

You need a Car Assignment Agreement when transferring vehicle ownership between individuals, corporations, or other entities in Indonesia. This document is essential for corporate fleet restructuring, where companies transfer vehicles between subsidiaries or departments. Employee vehicle assignment programs also require this agreement to properly document the transfer of company-owned vehicles to employees. Financial institutions use this document when transferring repossessed vehicles or when restructuring vehicle loans. Vehicle dealers and corporate fleet managers rely on this agreement for bulk vehicle transfers, ensuring proper documentation for each transaction. Insurance providers may require this document when processing claims involving vehicle ownership changes.

Key legal considerations

The agreement must clearly identify all parties with complete legal names and addresses, as required by the Indonesian Civil Code. Vehicle specifications including make, model, year, engine number, chassis number, and registration details must be accurately documented to prevent disputes. Assignment terms should specify the effective transfer date, any consideration exchanged, and warranties provided by the assignor regarding the vehicle's legal status. The document should address outstanding liens, loans, or encumbrances on the vehicle, ensuring the assignee receives clear title. Insurance obligations and liability transfer must be clearly defined, including responsibility for maintaining valid insurance coverage during and after the transfer. Tax obligations under Minister of Finance Regulation No. 27/PMK.010/2022 should be allocated between parties, specifying who bears transfer fees and ongoing tax responsibilities.

Legal requirements in Indonesia

Indonesian law requires vehicle transfers to comply with Law No. 22 of 2009 on Traffic and Road Transport and Government Regulation No. 55 of 2012 regarding vehicle registration procedures. The agreement must facilitate proper transfer of vehicle registration documents (STNK) and ownership certificates (BPKB) through the regional police (POLDA) office. Consumer protection rights under Law No. 8 of 1999 must be respected, particularly when transfers involve individual consumers. The document should ensure compliance with local POLDA regulations, which may vary between regions and require specific documentation or procedures. Vehicle identification verification may be required to confirm the physical vehicle matches the documented specifications. Transfer fees and taxes must be paid according to current regulations, and the agreement should specify responsibility for these costs. Both parties must ensure the vehicle meets Indonesian safety and emission standards as required by applicable regulations.