Can Expats Buy a Vehicle in Indonesia?

The short answer: yes!

Expats are legally permitted to purchase and own a vehicle in Indonesia, provided they hold a valid residence permit and financing expectations are aligned with local banking rules. There is no regulation prohibiting expats from registering a car or motorcycle under their own name.

Motor vehicle ownership in Indonesia is governed by the national registration system administered by the police, known as Registrasi dan Identifikasi Kendaraan Bermotor (Motor Vehicle Registration and Identification). This framework applies equally to Indonesian citizens and to foreign nationals who reside legally in the country.

Under prevailing regulations, foreigners who hold a valid KITAS (Temporary Stay Permit) or KITAP (Permanent Stay Permit) may register a vehicle in their own name. In practical terms, this means long-term residents can legally purchase both new and used vehicles in Indonesia without requiring a local nominee.

Vehicle financing: Important considerations

While ownership is permitted, financing is more restricted.

Indonesian banking regulations prohibit banks from extending credit facilities directly to foreign nationals. As a result, most expats are not eligible to obtain car loans in their own name, whether in rupiah or foreign currency. 
 

Read also: Opening Bank Account for Expat

For this reason, vehicle purchases by foreign nationals are typically made through direct payment. In certain cases — for example, if married to an Indonesian citizen — financing may be arranged under the Indonesian spouse’s name, subject to the bank’s internal policies and approval process.

Our Expat Guide to Owning Property in Indonesia is a click away. Or perhaps you’re wondering, Are Expats Eligible for a KPR/Mortgage in Indonesia?