Is It Cheaper to Buy or Rent a Car Long Term in Indonesia?

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Is it cheaper to rent or buy a car long-term in Indonesia?

The cost of renting a car in Indonesia depends on the age and condition of the vehicle. However, you can expect to pay about IDR1-2 million per day for small sedans like a Toyota Corolla or Mitsubishi Lancer as a rough estimate.

In addition, some taxes apply when you renting a car in Indonesia – they’re about 10% of the rental price per day, which adds up quickly depending on how long you’re renting it for.

The car fee also depends on the age and condition of your vehicle and wherein Indonesia you buy it. For example, a small used sedan in decent condition costs around IDR250K-IDR400K depending on which part of Indonesia you live in, while newer cars (2 years old) can go for more than double that amount.

There are also taxes due upon purchase (as high as 10%), and you must register your car for at least three months to get insurance. If your vehicle is ten years old or older, it may be cheaper to buy one rather than renting a car in Indonesia if it’s not very expensive – however, again, this depends on where you live!

What insurance do I need?

If you’re planning to drive in Indonesia, you must have third-party liability insurance. This covers any damage or injuries caused by your vehicle in an accident, and it costs about IDR500K-1 million per year for a small sedan (under ten years old).

Note that this is the minimum amount of coverage required by law – if you want to get a higher range, you can contact your insurer and find out how much it would cost.

As with Singapore and Malaysia, we recommend getting additional coverage to cover any damage or injuries caused by your car. In Indonesia, this is called comprehensive insurance (or “all-risk”) and is sold separately from 3rd party liability insurance.

You can also get personal accident insurance as part of a package deal with the other two types of coverage. It covers medical expenses if someone inside your car gets injury or dies due to a road accident.

If someone was riding in the backseat of a car when another driver hit them while they were crossing a busy street, the amount that their insurance covers would be the same as the amount on their policy. Therefore, if someone is riding in the back seat of your car, their insurance policy will cover the cost of their medical bills to the maximum amount. Since there are no taxes on the liability insurance policies that we offer, it is worthwhile to purchase them!

Insurance Minimum Coverage Amount Third Party Liability IDR500K (Compulsory) Excess/Deductible IDR50K Comprehensive IDR2 million (Optional) Personal Accident S$30K (Optional)

Is It Cheaper to Buy or Rent a Car Long Term in Indonesia?

Are there other ways to save on car insurance?

In addition to the insurance options above, there are some other ways you can save money on car insurance. It may be wise for a car that is less than ten years old to get an extra policy from your insurer.

For older cars, it might make sense to get 3rd party liability and personal accident coverage only – the deductible for third-party liability is IDR50K for all vehicles regardless of age.

Additionally, suppose you have multiple drivers in your household who drive frequently. In that case, it’s worth checking out multi-car policies since they tend to be cheaper per person per year (as opposed to buying multiple policies).

It’s important to remember that a multi-car policy will apply to all vehicles owned by the same driver – if two people living in the same house are driving cars together, it’ll count as one vehicle per household.

RELATED: How Do You Know If You Are Ready To Buy A Car?

Take the time to ensure that both drivers are licensed to drive before you sign up for a multi-car insurance policy – if they aren’t, their insurance won’t cover them!

Finally, you can also save money on car insurance by having a driver with a clean driving record – this may reduce your driver’s premium. Of course, it’s important to note that having a clean driving record doesn’t mean you can drive recklessly!

Keep in mind that while the penalties for drunk driving are much more severe than in Singapore and Malaysia, insurance companies still factor in your number of traffic violations when calculating their premiums.

Categories: Automotive


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