3. Leasing
• Operating Leasing in Indonesia is handled
as a rental.
• Depreciation made in the books of the Lessor.
• No transfer of title.
• Operating expenses as;
• Insurance,
• Road-tax,
• Maintenance and repairs,
• Replacement vehicle
are included in the Lease Fee.
19/11/2009 3
4. Leasing
• Financial Leasing, in Indonesia, is the
equivalent of Hire Purchase in other countries.
• Title is transferred to the user on delivery.
• Operating expenses are for the user.
• Depreciation of the asset is made by the Lessee.
• Collection issues are prevalent.
19/11/2009 4
5. Fleet Leasing
• A Group of Vehicles – a Fleet – is provided to the
Lessee.
• The composition of Brands and Models is determined by the
Lessee.
• The Fleet is serviced and maintained by the Lessor.
• No other charges than Petrol and direct driving charges
(driver) are paid by the Lessee.
• The Lessee undertakes not handle the vehicle with ‘normal
care’
• The Lessee is buying ‘Transportation’, not a vehicle.
19/11/2009 5
6. Add-In Products
• Insurance – Paid and administered by the
Lessor.
• Road Tax – Paid and administered by the
Lessor.
• Normal Service and Maintenance - Paid and
administered by the Lessor.
• Tyres – Included in Lease Fee.
• Replacement Vehicle - Paid and administered
by the Lessor.
19/11/2009 6
8. Administration
• Simple Administration
• One invoice per month
• Service and maintenance handled by the Lessor
• Insurance and Road Tax handled by Lessor
• No staff time for ‘vehicle issues’.
• Outside parties / tax inspectors do not discuss depreciation
issues or other matter pertaining to assets as it is Operating
Expenses for the company.
• Expertise with respect to vehicle values (at sale and purchase)
provided by the Lessor.
• Timely transportation ensured for the user.
19/11/2009 8
9. Financial
• Fixed price for the duration of the Lease
simplifies budgets and planning.
• Normal repairs and maintenance
included in the price.
• No significant cash outlay up-front.
• Tax issues resolved from the beginning.
• Utilisation of ‘untaxed money’ for
payment of Lease Fee.
19/11/2009 9
10. Comparison
• A purchase of a vehicle drains cash flow from the
corporation.
• A Toyota Kijang Innova costs IDR 182.4 million to buy.
• With the assumption of:
• Lease Interest rate of 18.5%,
• Three year utilisation,
• One lease payment as deposit to Lessor,
• User’s Pay back time requirement three and a half (3.5) years;
• Net saving, on a Net Present Value calculation, is
IDR 81.5 million over the period.
19/11/2009 10
11. Company PT. Company
Company PT. Company
Product T oyota Kijang Innva 2.0 G Man
NPV Purchase IDR 142,855,266 Saving Product T oyota Kijang Innva 2.0 G Man
NPV Lease IDR 61,300,454 IDR 81,554,812 57.09%
Lease Fee (excluding VAT) IDR 5,700,000
Lease Interest 18.50%
Lease Fee (excluding VAT) IDR 5,700,000
Tenor 3.0 Years Lease Interest 18.50%
1 Monthly Lease Payment 36 Payments
Tenor 3.0 Years
Deposit 1 Payments
IDR 6,271,000 incl VAT 10 %
1 Monthly Lease Payment 36 Payments
Residual Value 109,440,000.00
Deposit 1 Payments
Including IDR 6,271,000 incl VAT 10 %
Insurance x Residual Value 109,440,000.00
Maintenance x IDR 4,377,600 per year
Tyres x
Road Tax x Including
Replacement Vehicle x Insurance x
Maintenance x
Tyres x
Road Tax x
Replacement Vehicle x
19/11/2009 11
12. PT. Surya NordFinans
• PT. Surya NordFinans was acquired by the
Surya Group in 2001.
• NordFinans is concentrating its financing
activities on Operating Leasing of;
• Vehicles (Fleet Leasing)
• IT Equipment and Software
• Client base is primarily international
corporations
19/11/2009 12
13. Clients
• PT. SKF Indonesia
• PT. Chubb Indonesia
• PT. ABB Transmission and Distribution
• PT. Luxindo Raya
• PT. Roche Indonesia
• PT. Eka Dharma (Volvo)
• PT. Maersk Indonesia
• Crown Relocation
• Elof Hansson Indonesia
19/11/2009 13