OJK Cautions Against Incomplete Vehicle Transactions

Rising Concerns Over STNK-only Vehicle Sales

The Financial Services Authority (OJK) has expressed concerns regarding the growing trend of vehicle transactions conducted using only the Vehicle Registration Certificate (STNK) without the Vehicle Ownership Certificate (BPKB). According to Agusman, OJK's Executive Head of Supervision for Financing Companies, this practice is driven by lower prices, ease of transaction, and lack of consumer education.

Risks Associated with Incomplete Documentation

Agusman highlighted that transactions without complete documentation pose significant risks, including ownership disputes and increased credit risk for multifinance companies. The lack of BPKB as collateral complicates the legal ownership and financing processes, potentially leading to financial losses for leasing companies.

Regulatory Response and Industry Cooperation

In response to these risks, OJK is urging multifinance companies to maintain prudential practices, conduct thorough document verification, and insist on BPKB as collateral. Additionally, the authority emphasizes the importance of public education to ensure that vehicle transactions are conducted through official channels with complete documentation. Suwandi Wiratno, Chairman of the Indonesian Financing Companies Association (APPI), concurred that the current practices are detrimental to financing companies.

Path Forward

The OJK's stance underscores the need for a coordinated effort between regulators, industry players, and consumers to address the risks associated with incomplete vehicle transactions. By promoting proper documentation and consumer awareness, the financial services sector can mitigate potential disputes and credit risks.