The Property Banks Buyers Guide to Indonesia
STANDARDIZED PROPERTY
Property value: 599,800,648
City: Jakarta
Registration Requirements:
Procedure 1.
Land certificate examination at the Land Office
Time to complete: 3 days
Cost to complete: Rp. 25,000
Comment: A land certificate examination is carried out by a Land
Deed Official against the certificate maintained in the Land Office.
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. The local office of the Ministry of Public
Work (which has zoning information) is in a different building from
the Land Office. The zoning search can be done on the same day. No
written statement is given unless we apply for a land title for the
first time in which case the Land Office will also process the
zoning permit after they conduct land measurement.
Procedure 2*.
Seller pays transfer tax at a commercial bank
Time to complete: 1 day
Cost to complete: 5% of property price (Transfer Tax)
Comment: The seller pays the Tax on Transfer of Land and Building
(Transfer Tax) in the amount of 5% which is calculated on the
transfer value.
This tax is paid at a bank appointed by the State Treasury by the
State-owned bank (Bank BUMN), or the Local Government Bank (Bank
Badan Usaha Milik Daerah) and/or at the post office (Article 10 of
Law No. 20/2000 concerning the Amendment of Law No. 21/1997
concerning the Tax on Acquisition on Land and Building/BPHTB) ("Law
No. 21/1997") to accept tax payments.
Procedure 3*.
Buyer pays Tax on Acquisition on Land and Building
Time to complete: 1 day
Cost to complete: 5% of (property price minus Rp. 60,000,000 which
is tax-free) (Tax on Acquisition of Land and Building)
Comment: 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 seller 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, maximum is up to Rp.
60,000,000.-) (Article 7 of Law No. 20/2000). In Jakarta, the
NPOPTKP is Rp. 60,000,000.-.
This tax is paid at a bank appointed by the State Treasury to accept
tax payments or at a post office where the land is located.
Procedure 4.
File for Company Tax-Registration Numbers at the local Tax
Authorities
Time to complete: 3 days
Cost to complete: No cost
Comment: Parties must file for Company Tax-Registration Numbers
(NPWP) of the seller and the purchaser. That is, it is mandatory for
a Ltd liability company (PT) to obtain the Tax Registration Number
(NPWP) and the Ministry of Justice's approval of its Articles of
Association (AoA) at the same time as the filing of the property
registration.
Procedure 5.
Execution of Sale and Purchase of Land Deed by a notary public
appointed by the Head of the National Land Office or a local Head of
a Sub-District
Time to complete: 3 days
Cost to complete: 1% of the property value
Comment: The execution of the Sale and Purchase of Land Deed is made
before Land Officials, namely a notary public appointed by the Head
of the National Land Office or a local Head of a District (Camat
PPAT).
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 will issue 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. 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
Procedure 6.
Registration of the Land Deed at the local Land Office under the
name of the buyer
Time to complete: 30 days
Cost to complete: Rs. 25,000 (registration fee) + Stamp duty of Rp.
6,000 per document (2 required)
Comment: 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 shall submit such Deed
including its supporting documents to the Land Office, but in
practice the wait is much longer because of the back log. (Article
40 sub 1 of Government Regulation No. 24/1997 concerning the Land
Registration.) If the filed documents are deemed to be in complete
order, in theory, the registration process should be completed
within 14 (fourteen) days.
What the Land Office does is just cross out the name of the previous
owner and insert the name of the buyer, stamp and sign it.
Procedure 7.
Registration of the Land Deed at the Tax on Land and Building Office
(PBB) under the name of the buyer
Time to complete: 1 day
Cost to complete: No cost