Leasing Entrepreneurs Expose Modus Operandi of 'STNK Only' Credit Vehicle Sales

The practice of buying and selling credit vehicles using only the vehicle registration document, known as ‘STNK only’, is becoming increasingly rampant and is more frequently found on social media. This practice potentially creates legal problems because the vehicle remains a financing object under a fiduciary guarantee. Suwandi Wiratno, Chairman of the Association of Indonesian Financing Companies (APPI), told CNBC Indonesia on Thursday that BPKB ownership documents are still held by the financing company and the vehicle’s status remains under credit. Every debtor has actually signed a fiduciary agreement that prohibits the transfer of the vehicle to another party during the credit period. Suwandi stated that if a default occurs, the vehicle can actually be sold together through an appropriate mechanism to settle the obligation, as stipulated in the agreement. Problems arise when the vehicle changes hands multiple times without the knowledge of the financing company. This condition complicates the billing and execution process when the debtor falls into arrears. He added that financing companies are now also prioritising a persuasive approach before taking legal steps. Credit restructuring remains the primary option if the debtor still demonstrates good faith. Suwandi explained that the industry seeks customers who are willing to communicate when experiencing difficulties, noting that if matters can be resolved through restructuring, vehicle execution is unnecessary. He concluded that the current problem is that the vehicle has sometimes been transferred to a second, third, or even fourth party without following legal procedures.