Having a Car in Singapore is Not as Easy as in Indonesia, Must Buy the Cheapest Certificate Worth Rp1.6 Billion

The translation of the given text is: "Having a car in Singapore is not as easy as in Indonesia, you have to buy the cheapest certificate worth Rp1.6 billion."

Having a Car in Singapore is Not as Easy as in Indonesia, Must Buy the Cheapest Certificate Worth Rp1.6 Billion

Dream - Owning a car in Singapore is not as easy as in Indonesia. One of the wealthiest countries in the world implements a regulation for its citizens who want to own a car, they must purchase a Certificate of Entitlement (COE) worth billions of rupiah.

According to BBC Indonesia, the price of the certificate for each type of car is different and valid for only 10 years. The price of the certificate also does not include the price of the car itself.

There are various types of COE in Singapore, including for small cars, motorcycles, and commercial vehicles. In 2023, COE prices also experienced an increase due to various factors, such as post-pandemic economic recovery and government's plan to cut (discount) the certificates next year.

The lowest COE for a car is around Rp1.1 billion (S$104,000), which has increased almost threefold since 2020 - when the demand for new cars decreased due to the pandemic.

The translation of the given 'Bahasa' text to 'English' while preserving the HTML tags is as follows: The price of COE for large-sized vehicles is recorded to reach Rp1.6 billion (S$146,002). Then, for the open category COE, which does not have any restrictions on the type or size of the car that can be used, it reaches Rp1.7 billion (S$152,000).

As an example, to own a new Toyota Camry Hybrid car, Singaporeans have to dig deep into their pockets for a total of nearly Rp3 billion (S$250,000), which includes COE and tax costs. This price is approximately six times more expensive compared to the United States. Meanwhile, with the same type, the price of a Camry car in Indonesia is around Rp1 billion.

"Singapore introduced the COE system in the 1990s as an effort to prevent traffic congestion caused by the large number of vehicles. The COE certificates are sold through auctions every two weeks, where the Singapore government also controls the number of certificates being sold. With taxes and import duties, this system has made Singapore the most expensive country in the world to buy a car."

For the general public in Singapore, with an average salary of around Rp797 million (S$70,000), the COE scheme makes it difficult for them to buy a car. The government is making efforts to encourage its citizens to use public transportation, which is recognized as one of the best in the world.

Last year, the Singapore government has allocated more than Rp683 trillion (S$60 billion) to expand and upgrade the MRT network over the next 10 years. With a population of around 5.5 million people, the number of private cars in this city-state reached less than one million units at the end of last year. The number of new COEs available depends on how many old cars are retired from the roads.

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