Most foreigners with a temporary residence permit (KITAS) or permanent residence permit (KITAP) in Bali prefer to buy new or used motorcycles or cars instead of renting them on a monthly basis. However, sometimes you may need to change your scooter ownership to renew your license plate or Vehicle Registration Certificate. Buying a used motorcycle is more efficient as it eliminates the need for registration and you can sell it later.
In Indonesia, after purchasing a new motorcycle, owners must register their scooter with the Indonesian Police, who will provide two main documents: the Vehicle Registration Certificate (STNK) and the Vehicle Ownership Document (BPKB). However, if you decide to buy a used motorcycle, the registration process has already been completed by the previous owner. The motorcycle will be delivered with the existing STNK and BPKB documents.
In this case, you just need to pay an agreed amount to the seller and he will hand over the motorcycle to you along with STNK and BPKB documents. This can save you time and effort as you don’t have to go through the registration process yourself.
Meanwhile, you need to renew your motorcycle or car license plates every five years. Failure to renew your license plate on time makes it illegal to ride a motorcycle. To renew your license plate, you must provide the owner’s identification card, the Vehicle Registration Certificate, and the vehicle’s ownership document. These documents must match each other, so if you are buying a used motorcycle, you must provide the previous owner’s ID listed on the Vehicle Registration Certificate and BPKB, as well as a copy of his KTP (Indonesian Identification Card) and Power of Attorney.
If you have lost contact with the previous owner, the police may suggest that you change the owner of the Vehicle Registration Certificate and BPKB into your name to renew the plate.
However, using our services, you can easily renew your license plates without changing the owner, as having your name on these documents can tie you to Indonesian regulations and potentially lead to future complications.
In this blog, we will discuss seven reasons why foreigners should avoid changing their name on the Vehicle Registration Certificate and BPKB in Bali, Indonesia.
Legal obligations after change of ownership
When you change your name on your Vehicle Registration Certificate (STNK) and BPKB (Vehicle Registration Certificate) in Indonesia, you officially declare yourself the legal owner of the vehicle.
This means that you assume all legal obligations and responsibilities associated with owning a vehicle under Indonesian law. As a foreigner, navigating the complexities of the Indonesian legal system can be difficult, especially if you do not speak the local language and are not familiar with local regulations.
By putting your name on these documents, you expose yourself to potential legal problems that may arise from owning a vehicle in Indonesia. For example, if the vehicle is involved in an accident or traffic violation, you, as the registered owner, can be held liable for any damages or fines, even if you were not directly involved in the incident.
In addition, if the previous owner of the vehicle had any outstanding legal issues or unpaid fines, you may inherit these problems when you change your name on the Vehicle Registration Certificate (STNK) and BPKB.
Tax obligations as a motorcycle owner
In Indonesia, vehicle owners are required to pay an annual tax called “Pajak Kendaraan Bermotor” (PKB) or “vehicle tax”.
This tax is calculated based on the type, size and age of the vehicle and must be paid each year for the vehicle to remain legally registered.
As the registered owner, it is your responsibility to make sure you pay these taxes on time, even if you are not currently using the motorcycle or plan to sell it soon.
In addition, if you decide to leave Indonesia while remaining the registered owner of the motorcycle, you will continue to be responsible for annual taxes until ownership is transferred to another person.
This can be a significant financial burden, especially if you are unable to sell the motorcycle before you leave the country or if the title transfer process is delayed.
Insurance complications
First, some insurance companies in Indonesia may be reluctant to provide coverage for foreign-owned vehicles.
They may perceive foreigners as higher risk clients due to factors such as language barriers, unfamiliarity with local laws and regulations, and the possibility of sudden departure from the country.
As a result, finding an insurer willing to offer comprehensive coverage for your motorcycle can be more difficult and take longer.
Even if you manage to get insurance for your motorcycle, the claims process can be complicated.
Insurance companies may require additional documents and evidence from foreign owners, such as proof of residency, visa documents and translations of important documents.
This additional documentation can delay the claims process and make it more difficult to obtain compensation for losses or damages.
Difficulties in selling
In Indonesia, the process of transferring vehicle ownership from a foreigner to a local buyer can be complicated and time-consuming.
The buyer will have to go through a series of bureaucratic procedures that may include obtaining special documents, such as a power of attorney, and dealing with various government agencies.
This added complexity may deter potential buyers, as they may prefer to buy a motorcycle from a local seller to avoid the hassle and uncertainty.
In addition, buyers may worry about the legal ramifications of buying a vehicle from a foreigner.
They may be concerned that there may be unresolved legal issues, unpaid taxes, or other hidden problems related to the motorcycle that will become their responsibility once ownership is transferred.
This perceived risk can make buyers less likely to buy, even if the motorcycle is in good condition and offered at a fair price.
Visa and accommodation issues
Owning a vehicle in Indonesia can be seen as a sign of intent to put down roots or have long-term ties to the country.
This perception can lead to increased scrutiny of your visa status and potentially complicate interactions with local authorities.
For example, if you are stopped by the police while riding a motorcycle, they may inquire about your visa and ask questions about the purpose of your stay in Indonesia, especially if your visa is about to expire or if you are in the country for an extended period of time.
Additionally, if you need to apply for a visa extension or change your visa status, owning a vehicle in your name may raise additional questions during the application process.
Immigration officials may require you to explain your intentions and provide more detailed documentation to prove your eligibility for your desired visa.
Language barriers
The bureaucratic processes associated with vehicle ownership in Indonesia may involve interaction with several government agencies such as the police, tax office, and department of transportation.
Each of these agencies may have specific requirements, forms and procedures that must be followed to maintain the legal status of your motorcycle.
Understanding and executing these processes can be challenging, especially if the instructions and documents are mostly in Indonesian.
For example, when you need to pay your annual vehicle tax or renew your vehicle registration, you may need to fill out forms, provide certain documents, and communicate with government officials to complete the process.
If you are not fluent in Indonesian, you may find it difficult to understand the requirements, which can lead to errors or delays in completing the necessary paperwork.
This could result in fines, penalties, or even a temporary suspension of your vehicle’s legal status until the problems are resolved.
Alternative with no change in ownership
Using our services, you can renew your license plates without changing your name on the paperwork, allowing you to avoid the above complications while still being able to legally use your motorcycle.
For more information, you can contact us via WhatsApp.
Conclusion
While it may seem convenient to change the owner on the Vehicle Registration Certificate (STNK) and BPKB when buying a used motorcycle in Bali, foreigners are advised to avoid this in most cases.
By understanding the potential risks and utilizing the services of a trusted agent, you can enjoy the benefits of motorcycle ownership without additional legal and financial obligations.
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Frequently Asked Questions
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Я хочу избежать изменения имени, но мне нужно обновить номерные знаки транспортного средства. Что мне делать?
Наше агентство может помочь вам справиться с этими процессами без необходимости изменения имени, избегая тем самым юридических сложностей и административных хлопот.
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Есть ли альтернативный способ управления документацией на транспортное средство без риска для меня?
Да, наше агентство может помочь вам с такими услугами, как обновление и оплата налогов, беря на себя бюрократические аспекты и минимизируя риски, сохраняя ваше имя вне документов.
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Какие юридические риски я несу при изменении имени в Свидетельстве о регистрации транспортного средства на Бали?
Изменение имени влечет за собой юридическую ответственность, включая обязательства по любым штрафам или нарушениям, связанным с транспортным средством, как текущим, так и прошлым.
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Какие потенциальные последствия могут возникнуть при наследовании неурегулированных юридических вопросов или неоплаченных штрафов от предыдущего владельца при изменении моего имени в Свидетельстве о регистрации транспортного средства?
Если существуют неурегулированные юридические вопросы или неоплаченные штрафы, связанные с транспортным средством от предыдущего владельца, вы можете унаследовать эти проблемы при изменении вашего имени в Свидетельстве о регистрации транспортного средства, что может привести к дополнительным юридическим сложностям и финансовым обязательствам.
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Может ли наличие моего имени в Свидетельстве о регистрации транспортного средства вызвать вопросы о моем визовом статусе и предполагаемой длительности пребывания в Индонезии?
Да, владение транспортным средством в Индонезии может рассматриваться как признак намерения пустить корни или иметь долгосрочные связи со страной. Это восприятие может привести к усиленному контролю вашего визового статуса и потенциально осложнить взаимодействие с местными властями.
