Know What Is Cbu in the Indonesian Automotive Industry

What is CBU? This label often appears on some luxury and rare cars. CBU or built-up car first appeared in Indonesia ahead of the millennium era, namely in 1999.

In that year, the government opened the faucet for car imports as a whole. So that in this era, there are more and more varied types of four-wheeled vehicles entering Indonesia.

At that time there were still many people who did not know what CBU was? However, with the incessant regulation on the import of this car, over time, CBU cars began to get excited. Luxurious and dazzling foreign car manufacturers have begun to enliven the local automotive market.

What Does Cbu Mean?

CBU stands for Completely Built Up. A car with a CBU label is a car that is directly imported from abroad, or the term is imported from the country of origin in intact condition. Yes, intact because the assembly in the country of origin.

For this reason, the price of CBU cars is usually more expensive than the market price. This is due to the more costs needed to export and import the car.

Generally, built-up cars are cars whose manufacturing factories do not yet exist in Indonesia, such as Ferrari. Lamborghini. Porsche. Lexus. and so on.

If a car purchased directly from abroad is called a CBU, then a car assembled at home is usually a CKD.

What Is Ckd

CKD or Completely Knock Down is a type of car assembled domestically. Although spare parts and other components are purchased from abroad, if they are still assembled domestically, the car is still called a CKD car.

The price of a CKD car is certainly much cheaper than a CBU, because it is not subject to a component import tax. Usually, CKD cars are the best-selling cars on the market. Cars whose sales can be direct on a large scale.

For that, in terms of budget, CKD cars are certainly far superior to CBU cars. This is because even though the components are from outside, they come separately. So the costs incurred for taxes / excise when entering Indonesia are much cheaper.

Both CBU and CKD cars should be insured. Insurance is the right solution to provide protection for your finances.

When your car is damaged or lost, insurance can cover the repair costs needed. So, you don't need to use your own savings to pay for these costs.

Advantages of Cbu

Although from the budget CKD is much cheaper than CBU. But there are also many things that make you smitten with a built-up car. Here are some things that become the attraction of a built up car.

1. Component

Buying a CBU car means getting all the complete parts of the car directly from the manufacturer abroad. This makes all CBU cars equipped with components that are not owned domestically.

Technology, durability to materials from abroad are usually different from domestic ones. This is because the weather conditions, the environment and the terrain outside and inside are different.

So that components from abroad can be more resilient because they are ready for 4 seasons of weather, in contrast to Indonesia, which only has two seasons.

So even though the Toyota Rush purchased is of course, the innards and interior design are slightly different from those made in the country. It's not that domestically made is bad, but the components are a bit exclusive to CBU cars.

2. Exclusive

The appeal of the next CBU car is the pride of owning a foreign-made car directly. The sensation of trying out what foreign people usually use on the streets of the country.

Like a separate exclusivity, driving with a car that is predicted to have a better quality than a CKD car. Moreover, you can just drive a car that is of the same quality as the car you like in Hollywood movies, for example.

3. High Selling Price

To get a CBU car, of course, it takes a lot of effort and sacrifice. But it will be proportional to the selling value later. Components that are difficult to find and produced in limited quantities make the appeal of CBU cars continue to increase.

Exclusive specifications are added, usually CBU cars are luxury cars to supercars. Then it will be very easy if you want to resell it, because there are still many fans.

4. Good Performance

CBU cars are designed with ideas and technology from abroad. This makes the specifications in the CBU car much more powerful and ready for various weather constraints.

Even though they both use gasoline, the performance produced by the CBU car is fantastic. Not only the engine, but also the legs, wheels, tires, to the safety and comfort of a CBU car above the average CKD car.

5. Quality

CBU cars are considered to be of higher quality than CKD cars. This is because CKD cars are usually the best-selling cars in the market, then mass-produced so that manufacturers focus more on quick and plentiful results.

This makes the CKD car reduce several features in order to reduce costs, and time during manufacture.

In contrast to CBU cars, which are made limited, so that the workmanship is more detailed, then more new features are planted, therefore the CBU price is much more expensive.

Disadvantages of Cbu Cars

Beauty is pain. that's the term that seems to be attached to CBU cars. With all exclusivity, and premium components. There are also some disadvantages of CBU cars that make you have to think twice when buying them.

1. Price

As everyone knows what is CBU? So it is clear that the thing that is lacking from CBU cars is the high price. The price of one car must be added with shipping costs which include CBU customs fees.

Although CKD cars also import their components from outside, it is clear that the cost of shipping a whole car with small components is much more expensive.

2. Difficult Components

In addition to the exorbitant price, the CBU car is a little troublesome when entering the workshop. This is because spare parts and components for CBU cars are not available domestically.

Usually to get components from outside for a built-up car, the customer must be very friendly because the goods are pivoted.

This makes a lot of time wasted just to repair the car. Then coupled with the difficulty of finding a service place for a built up car. Because every built up car has a different assembly.

3. Cbu Car Tax

Quoted on the site, PPnBM rates are regulated in the Minister of Finance Regulation Number 33/PMK.03/2017 concerning Types of Motorized Vehicles Subject to Sales Tax on Luxury Goods, and Procedures for Granting Exemption from the Imposition of Sales Tax on Luxury Goods.

In the regulation, the government does not differentiate between CBU and CKD car taxes. However, the amount of tax is distinguished between the types, both sedans and other types.

For example, PPnBM for sedans with engines reaching 1,500 cc will be subject to PPnBM at 30%. As for machines from 1,501ccc – 3,000cc, the tariff is 40%. If the engine is above 3,001 cc, then the rate will be extraordinary at 125%.

Then, the PPnBM tariff for cars that have a capacity or engine cubication of less than 1,500 cc-2,500 cc is subject to a tariff of 10% -20%. So it is clear that the car tax rate is not distinguished from the origin of the factory, but on the engine cubication.

Expansion of Cbu Car Exports in Indonesia

In 2021, CBU car exports throughout the first quarter tended to stagnate, when compared to last year. This was revealed by data from the Association of Indonesian Automotive Industries (Gaikindo) in 2021.

Total CBU car shipments have reached 78,820 units in the first three months of 2021, an increase of 0.3 percent on an annual basis. However, on a monthly basis, exports decreased by 10.7 percent compared to February 2021.

According to Gaikindo data, Toyota is the company that exports the most CBU cars in Indonesia with 62 percent of national automotive exports.

A total of 17,216 cars have been exported to 51 export destination countries spread across Asia, the Middle East, Africa, South America, Oceania and Africa.

Meanwhile, in the second place with the most CBU exports, PT Auto Indomobil Motor (SIM) posted a car export growth of 12 percent.

Auto XL7 as the biggest contributor. Also assisted by Karimun Wagon R, Ertiga and also Carry Pick Up.

Those are all the answers to the question what is a CBU in the car industry? Then back again to the people's choice, want to buy a built-up car or CKD.

Cars are indeed tertiary in nature, but along with the increasing mobility of people, cars are now a primary need.

Hopefully you have found your choice, and prioritize safety before driving to the road.

Find out more about how to pay car taxes online so that your tax payment process becomes more practical and certainly won't be delayed anymore.

the Importance of Car Insurance

A car is a valuable asset that should not be played with in its maintenance. The owner must always check the condition of the engine, clean the body and interior, and ensure the safety of the components.

But sometimes we can't avoid the risks that can happen to the car, for example being scratched, hit, to a serious accident. Imagine if it was scratched just a little, the cost to repaint the car could be hundreds of thousands for one panel. Not cheap, right?

So, to stay safe and calm, don't forget to insure your vehicle with the best car insurance options. Insurance is a form of risk control where you as the insured have the right to transfer financial risk to the insurer, namely the insurance company if the car is damaged due to an accident, natural disaster or other legitimate causes.

To find out how much car insurance premium you have to pay each month, you can use this calculator from Auto Insurance Agencies.

As a guide, insurance premiums are calculated based on the type of insurance (all risk and TLO), and the area and price of the car.

In some cases, extended coverage can also affect the price of auto insurance premiums.