Key Considerations for Exporting Luxury Cars to Indonesia | GVE London – Blog

If you’re thinking about exporting luxury cars from the UK to Indonesia for business or personal reasons, it is best to keep in mind that the process isn’t exactly the easiest, but it isn’t impossible either and can prove to be quite fruitful. The demand for cars within major cities like Jakarta and Bali keeps growing, both as the locals get more disposable income and due to the influx of those from the West moving to these countries. So, let’s talk about all the things one must keep in mind in order to find success.

Understand Indonesia’s Import Rules & Taxes

Indonesia’s import laws are on the stricter side to control illegal goods from entering the country and to protect local businesses. However, every country must engage in global economics, but they do it on their own terms. What are the terms for Indonesia?

Be prepared for a shocker because the high tariffs and taxes that luxury cars can sometimes face are up to 125% of the car’s value. The taxes do vary based on engine size, engine type, etc., but you must keep in mind that the price is sure to increase drastically after everything is taken into consideration. For instance, import duty is between 10-80%, Luxury Goods Tax is 40-125%, and VAT is 11% standard.

Adapt to Local Preferences

The demand for luxury and sports cars is increasing in Indonesia, but that doesn’t mean every car exported from the UK would be a hit. Every market and its people are different. Whilst, of course, something like car preference is highly subjective, here is a general overview of what the Indonesian car community tends to prefer:

• Right-hand drive cars, which is perfect as the plan is to export luxury cars to Indonesia from the UK, meaning no conversion requirements.
  
• Supercars sell in small numbers, but there is a high return on them.
  
• Cars like Range Rover and Urus—high-end cars with decent ground clearance—are often liked.

Read Also: How to Find the Best Luxury Car Exporter in the UK?

Shipping & Logistics: Avoid Costly Mistakes

For the most part, it is best to simply opt for the sea freight option (unless you’ve got an extremely time-sensitive or expensive shipment) and choose container shipping. For luxury car export, container shipping is standard as it protects the cars from any salt or elemental damage, which they are at risk of in RoRo (Roll-on/Roll-off) shipping.

Furthermore, get insurance. Many shipping companies have their own insurance, but one must read through it and see if it covers all grounds, opting for a better one if it is unsatisfactory.

After-Sales Support Matters

As a supercar showroom, we here at GVE London ensure that all our customers get the support they need as best as possible from our end. To build a long-lasting relationship with a client, one must tend, to the best of their abilities, to their after-sales support service. Consider partnering with local dealers or setting up a service network because if there is absolutely no support post-purchase, buyers will avoid your brand. Remember the golden rule: it’s easy to buy a car but difficult to maintain one.

Legal & Compliance Risks

There is always the off chance of a buyer using a fake import permit to try and scam you. One cannot be too careful. Luxury car exports are lucrative, and where there is potential for money, there is potential for those wanting to scam you. This isn’t an issue particular to Indonesia by any means but spans across the world. So, verify the credentials before shipping.

Conclusion

It is best to test the waters first if you’re trying luxury car exports for the first time. It will give you a fair estimate of the demand, how viable it is for you, and the only way to truly understand the entire exporting system is to actually do it. If you’re a buyer from Indonesia looking to import high-end vehicles, contact us here at GVE London. We’re a supercar showroom that takes care of everything from sales, purchases, repairs, servicing, and customisation of high-end vehicles—all under a massive facility. Contact us today to know more!