How to Export Luxury Cars to Indonesia | GVE London – Blog

Exporting luxury cars from the UK to Indonesia has been presenting as a lucrative opportunity these recent years, largely due to the rising demands for high-end cars in the country, thanks to rising disposable incomes and a strong car culture. However, as much as people of Indonesia love cars, shipping a car from one country to another is never an easy process. It requires an understanding of the logistics, knowledge about regulations, taxes and also the demand; not all cars sell equally well after all. This guide aims to provide a comprehensive overview to ensure a smooth export process.

Understanding Indonesian Import Regulations

Indonesia is not the most lenient of countries when it comes to vehicles. The very first and notable issue that arises is the fact that importing used cars is a no-no, and that has been the norm for a long time. There are exceptions of course for rare and special cars, but the process gets even more complicated when you consider those.

So, generally speaking, only new vehicles can be legally imported into the country. Furthermore, all cars must be right-hand, but that isn’t an issue if you’re exporting cars from the UK to Indonesia.

Securing Necessary Documentation

Without proper documentation, a car is a major cause of concern for a country. Who does it belong to? Why is it here? A car ceases to just be a car at that point and becomes a target of suspicion. So, for a hassle-free export process, make sure you’ve got all the documents, they’re accurate and complete. Here are a few key documents that need to be included:

• Vehicle Registration Document (V5C): Proof of vehicle ownership.
• Bill of Sale: Details of the transaction between buyer and seller.
• Export Certificate: Official permission to export the vehicle.
• Import Approval: Obtained from the Indonesian Ministry of Trade, this approval is essential for legal importation.

Navigating Taxes and Duties

Let’s get to the big one now, shall we? Everything from paperwork to logistics can be handled, but the major issue when it comes to imports or luxury car export is the taxes and duties that rack up the prices and sway buyers away. Importing luxury cars into Indonesia comes with its fair share of taxes and duties including:

• Import Duty: Ranges from 0% to 150%, depending on the vehicle’s specifications and value.
• Value-Added Tax (VAT): As of January 1, 2025, VAT is set at 12%, applicable to luxury items, including high-end vehicles.
• Luxury Goods Sales Tax (LGST): Applied to luxury items, with rates ranging from 10% to 75%, depending on the vehicle’s specifications and value.

These taxes put together shoot up the price of the car to almost double, which largely reduces the demand.

Selecting a Shipping Method

If you’re planning to export luxury cars to Indonesia, your most realistic option that is both safe and fairly cost-effective is container shipping. RoRo, or Roll-on/Roll-off shipping, isn’t ideal for high-end cars, and air freight is too expensive to justify its cost unless the buyer is in a hurry or the car is extremely rare or special. That leaves us with, as we said earlier, container shipping, wherein the car is transported in an enclosed metal container that protects it from external elements and can even be climate-controlled for some extra cash.

Read Also: What Is the Best Shipping Method for Exporting Cars to Indonesia?

Adapting to Local Preference

To be a successful salesperson, you must understand what your audience wants. Whilst the Indonesian market is into a variety of cars, preferences do vary. Not all brands perform equally well due to local reputation, after-sales support, road conditions and more play a major role in the consumer’s choice. It falls upon you to understand the local preferences to make profitable and successful deals.

Conclusion

There’s no sugarcoating it, exporting luxury cars to Indonesia is a complicated task, but it is a rewarding one once you understand all the rules, regulations and are able to handle the logistical demands.

If you’re a buyer in Indonesia or someone from the UK looking to take their car to Indonesia with them, give us a call here at GVE London. Our supercar service centre has been a long-standing luxury car exporter, having dealt with hundreds of clients worldwide and helped them get the car of their choice in their choice of country. We’ve got a wide range of cars to choose from, but if you’re looking for a specific one, we can arrange for it as well. Furthermore, being enthusiasts, we not only perform the usual repairs and service but can work on customisation, modifications and detailing as well. To know more, hop on a call with us today!