JAKARTA (Indonesia Today) – Starting today, October 8, automotive financing firms must register fiduciary certificates with the Law and Human Rights Ministry no later than 30 days after their customers sign financing agreements.
Without the certificates, consumer financing firms are prohibited from repossessing motorcycles and cars from customers who fail to repay their loans without permission from the Law and Human Rights Ministry.
Business players have expressed their concern over the new rule, including slowdown in sales due to higher costs. Customers might have to pay between US$50 and US$100 additional administrative costs for the fiduciary and notary services.
This is the second measure imposed on automotive financing after regulators imposed a loan-to-value cap on the purchase of motorcycles and cars. (Indonesia Today)