+62-853-3842-3353

Registering Property in Indonesia

Registering Property in Indonesia

Below is a detailed summary of the steps, time and cost involved in registering property in this economy.  It assumes a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

No.

Procedure

Time to Complete

Associated Costs

1

Land certificate examination at the Land Office

A land certificate examination is carried out by a Land Deed Official. If the land book concerned is available at the Land Office, it usually takes a few hours to 1 day. However, sometimes the land book is unavailable, misplaced or being used by another division of the Land Office, so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office.
The land title search would also involve a check at the local city planning office located at the local government office to determine the intended use of the said plot of land, whether for residences, industry or green belt. No written statement is given, but a note made on the certificate saying ‘Has been examined and pursuant to Government Regulation No. 13 of 2010 regarding Types and Tarrifs of State Non Tax Income Applicable in National Land Offices dated 22 January 2010, the current cost is Rp. 50,000

Agency: Land Office

1 dayRp. 50,000

* 2

Seller pays transfer tax at a bank

The seller must pay the Transfer Tax prior to the execution of the transfer deed. The tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the sale or transfer value. In case the sale value is lower than the Sales Value of the Tax Object (“NJOP”), then the NJOP price will be used. But the sale value is higher than the NJOP, then the sale value will be used.
The Transfer Tax is paid to a Bank Persepsi – bank appointed by the Ministry of Finance to accept tax payments. Tax to the local government is paid at the Local Government Bank (Bank Badan Usaha Milik Daerah) and/or other private commercial bank (Article 4.2 of Law No. 7/1983, amended by Law No. 10/1994 and Law 17/2000 concerning Income Tax) and Parts 2.1 and 5.1 of the Director General of Taxation Circular No. SE-04/P.J.33/1996 dated August 26, 1996.

Agency: Bank

1 day (simultaneous with procedure 3 & 4)5% of property price (Transfer Tax)

* 3

Buyer pays Tax on Acquisition on Land and Building

The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% of the sale value or transfer value.
The BPHTB Formula: The buyer pays the BPHTB in the amount of 5% x (Sale value or Transfer value or Nilai Perolehan Obyek Pajak or NPOP – Non-Taxable Sale Value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak or NPOPTKP which is determined regionally. (According to Article 7 of Law No. 20/2000 concerning the amendment of law No. 21/1997 concerning the Tax on Acquisition of Land and Building). In Jakarta, the NPOPTKP is Rp. 80,000,000.- (according to Article 5 paragraph 7 of the Regional Decree of Special Province of Jakarta No. 18/2010 concerning the Tax on Acquisition of Land and Building (BPHTB).
This tax is paid at a Bank Persepsi, appointed by the State Treasury to accept tax payments, or at a post office where the land is located.

Agency: Bank

1 day (simultaneous with procedure 2 & 4)5% of (property price minus Rp. 80,000,000 which is tax-free) (Tax on Acquisition of Land and Building)

* 4

Execution of sale and purchase of Land Deed by a PPAT official

The execution of the sale and purchase of Land Deed is made before Land Officials (who are often public notaries as well) appointed by the Head of the National Land Office (PPAT) or a local Head of a District (Camat PPAT), after the taxes in procedures 3 and 4 have been paid. For convenience, those payments are usually made by the notary three days before the execution of the sale-purchase deed.

The documentation shall include:
-Original land certificate
-Evidence of the latest payment of Tax on Land and Building (PBB). Every year, the local PBB Tax Office issues a tax assessment to land owners. By custom, the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months–though in practice the office will check the last 10 years. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner.
-Evidence of payment of Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2)
-Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3)
-Evidence of deed of Company Establishment which was already authorized by the Ministry of Justice
-Company Tax-Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4)
-Deed of Establishment and its amendments of both the seller and purchaser;
-Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser
-Advise Planning from the City Administration Institution
-Permit for Building Establishment

Agency: Land Deed/PPAT Official

3 days (simultaneous with procedure 2 & 3)1% of the property value

5

Registration of the Land Deed at the local Land Office under the name of the buyer

Registration of the Land Deed at the local Land Office to have the purchaser’s name registered and recorded in the land certificate.
At the latest of 7 (seven) days as of the signing date of the sale and purchase of Land Deed, the notary submits such deed including its supporting documents to the Land Office, but in practice the wait is much longer because of the backlog. (Article 40 sub 1 of Government Regulation No. 24/1997 concerning the Land Registration.) In theory, the registration process should be completed within the 5 days statutory time limit. The Land Office crosses out the name of the previous owner and inserts the name of the buyer, stamps and signs it.

Agency: Land Office

15 days1/1000 of the property value + Rs. 50,000 (administrative fee) + Stamp duty of Rp. 6,000 per document (2 required)

6

Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer

In connection to the registration of the Land Deed at the Tax on Land and Building Office, the change of ownership must be registered with the Tax Office. The taxpayer should report manually to the Tax Office with regard to the transfer of land title.

Agency: Land and Building Tax Office (PBB)

1 dayno cost

* Takes place simultaneously with another procedure.

Click here to search and find exotic property or affordable land for sale in Bali Indonesia

Or explore bellow all affordable Land for sale in Bali available on current real estate market for your property investment in Bali Indonesia

Tanah dijual di Renon Denpasar - Land for sale in Bali1

Affordable 425 m2 land for sale in Prestigious Location

Located in Prestigious area of Renon, Denpasar this affordable land is great for your house in Bali. Nice and cozy surrounding where many public facilities are all close by and only 13 minutes drive to Sindhu Beach in Sanur. Land ...
DETAIL ==>>
TJSN2002 Tanah Dijual di Sanur - Land for sale in Bali

Land for sale in Padang Galak near Sanur beach Bali

This land plot is excellent spot to build your dream house or Villa Located in cozy surrounding this rectangular shape of land offer an exotic river and estuary of Padang Galak Beach Only view minutes walking to Bali Festival Park ...
DETAIL ==>>
Affordable House for sale near Sanur Beach Bali - Jual Tanah Murah di dekat Pantai Sanur Bali

A Nice House with Large size of Land near Sanur Beach for Sale

Located at Perumahan Kertha Lestari, this nice house is for quick sale at very cheap price, even cheaper than its land price. Its only 3 km west of Mertasari Beach at Sanur Land size : 900 m2 ( 9 are ...
DETAIL ==>>
Land for sale in Sanur Bali

For Quick Sale Land with house near Sanur Beach

This Balinese Style House is located at Jalan Tondano, cozzy area where the are many villas arround, only view minutes drive to Sindhu Beach Sanur For quick Sale cheaper than the market land price in the area Land Size : ...
DETAIL ==>>
FOR sale Exotic Property Land in Ubud TJUB743

Affordable Property Land sale in Ubud Bali TJUB743

Featuring Fantastic Rice field View this affordable 5,267 m2 Land for sale in Ubud Bali is located in Kedisan, Ubud Tegalalang, excellent for Villas / Resort / Hotel and a profitable Property investment in Bali Below are the specs and ...
DETAIL ==>>
Beautiful Ubud Tampak Siring 750 m2 Land for sale TJUB742

Magnificent 750 m2 Land in Ubud Tampak Siring Bali for sale TJUB742

Featuring Fantastic cliff and river view this Freehold 750 m2 Land in Ubud Bali for sale is located in Tegal Saat, Ubud Tampak Siring, excellent for Private house / commercial villas and a profitable Property investment in Bali Check-out the ...
DETAIL ==>>
Beautiful Ubud Land for sale TJUB741

Magnificent Land in Ubud Bali for sale TJUB741

Featuring Outstanding rice fields, cliff and river view this Freehold 78,000 m2 Land in Bali for sale is located in Bresela, Ubud Payangan, excellent for Villas / Resort / Hotel and a profitable Property investment in Bali Check-out the specs ...
DETAIL ==>>
Beautiful Property Ubud Bali Land for sale TJUB740

Magnificent Property Land in Ubud Bali for sale TJUB740

Located in Ked Taro, Ubud Tegalalang this Freehold 12,000 sqm Land in Ubud Bali for sale featuring Magnificent cliff and river view, perfect for Villas / Resort / Hotel, great for Property investment in Bali, Indonesia Below are the specs ...
DETAIL ==>>
Affordable Property 1,000 m2 Land in Ubud Pejeng for sale TJUB739

Beautiful 1,000 m2 Land for sale in Ubud Pejeng Bali TJUB739

Featuring Astonishing Rice field View this Freehold 1,000 m2 Land in Bali for sale is located in Br. Sala Tiapi, Ubud Pejeng, excellent for Private house / commercial villas and a profitable Property investment in Bali Check-out the specs and ...
DETAIL ==>>
Exotic Property 2,000 m2 Land for sale in Ubud Kemenuh TJUB737

FOR sale Affordable Property 2,000 m2 Land in Ubud Bali TJUB737

Featuring Beautiful Rice field View this Freehold 2,000 m2 Land for sale in Ubud is located in Ubud Kemenuh, excellent for shop / restaurant / commercial property and a profitable Property investment in Bali Below are the specs and the ...
DETAIL ==>>
Affordable Property 3,200 m2 Land in Ubud Singapadu for sale TJUB736

Beautiful 3,200 m2 Land for sale in Ubud Singapadu Bali TJUB736

This affordable 3,200 m2 Land for sale in Bali is located in Sila Karang, Ubud Singapadu. Featuring Outstanding Rice field View this Land for sale in Ubud is suitable for Private house / commercial villas, a prospective Property investment in ...
DETAIL ==>>
Exotic Property Ubud Land for sale TJUB735

Affordable Property Land in Ubud Bali for sale TJUB735

Located in Kendran, Ubud Tegalalang this Freehold 16,000 sqm Land in Bali for sale featuring Beautiful River and Rice Fields View, perfect for Villas / Resort / Hotel, great for Property investment in Bali, Indonesia Check-out the specs and the ...
DETAIL ==>>

Tags :

LAND IN UBUD BALI FOR SALE , AFFORDABLE LAND IN CANGGU BALI FOR SALE , LAND FOR SALE IN JIMBARAN BALI , AFFORDABLE LAND FOR SALE IN TABANAN BALI , PROPERTY INVESTMENT IN BALI , LAND IN BALI FOR SALE IN UBUD , AFFORDABLE LAND FOR SALE IN CANGGU , LAND FOR SALE IN JIMBARAN , AFFORDABLE LAND IN TABANAN FOR SALE , AFFORDABLE PROPERTY IN BALI , LAND IN UBUD FOR SALE , AFFORDABLE LAND IN BALI FOR SALE IN CANGGU , LAND IN JIMBARAN BALI FOR SALE , AFFORDABLE LAND IN TABANAN BALI FOR SALE , REAL ESTATE IN BALI , BALI LAND FOR SALE , BALI PROPERTY INVESTMENT