Contract Of Sale Of Motor Vehicle Template for Indonesia

A Contract of Sale of Motor Vehicle is your legal safeguard when buying or selling a motor vehicle in Indonesia. This binding agreement establishes the terms of the transaction and ensures compliance with Indonesian laws governing vehicle ownership transfers. Whether you're dealing with a private sale, purchasing through a dealership, or involved in a corporate vehicle transaction, this contract protects your interests and provides legal certainty.

When do you need this document?

You need this contract whenever you're involved in transferring vehicle ownership in Indonesia. Private individuals selling their personal cars, motorcycles, or other vehicles require this agreement to legally transfer ownership. Car dealerships use these contracts for every vehicle sale to customers. Companies selling fleet vehicles, leasing companies transferring vehicles at lease end, and banks disposing of repossessed vehicles all need proper sale contracts. The document is also essential when purchasing imported vehicles or when buying from estates or bankruptcy proceedings.

Key legal considerations

The contract must clearly identify both parties with complete legal names, addresses, and identification numbers as required under Indonesian Civil Code provisions. Vehicle specifications including make, model, year, engine number, chassis number, and registration details must be accurately documented to prevent disputes. Payment terms should specify the purchase price, payment method, and completion date. Warranty provisions need careful consideration, particularly for used vehicles, as Indonesian Consumer Protection Law provides specific buyer protections. The seller must warrant they have clear title and legal authority to sell the vehicle. Include clauses addressing vehicle condition, outstanding finance, and any liens or encumbrances that could affect the transfer.

Legal requirements in Indonesia

Indonesian law requires specific procedures for vehicle ownership transfer under Law No. 22 of 2009 on Traffic and Road Transportation and Government Regulation No. 55 of 2012. The contract must facilitate transfer of the BPKB (Proof of Vehicle Ownership) and STNK (Vehicle Registration Certificate) as mandated by Minister of Internal Affairs Regulation No. 71 of 2013. Both parties need valid identification, and the transaction must be registered with the local police traffic unit within the prescribed timeframe. If the vehicle has outstanding finance, the contract should address loan settlement and lien release procedures. Commercial sellers must ensure compliance with consumer protection obligations, including providing accurate vehicle history and condition disclosures. The agreement should specify which party bears responsibility for transfer fees, taxes, and administrative costs associated with ownership change.