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Buy and Sale Land or Property in Indonesia

The foreigner that desires to start a business or just to live in Indonesia, the land and building is one of the necessary primary needs. The land itself is a basic necessity to build a place of business or residence. In Indonesia, land with the Freehold title can only be owned by Indonesian citizen, thus, it is impossible for foreigners to have land with Freehold title. Regarding the other rights of land that can be owned by a foreigner, Indoned Consultancy provides more information about it. Here glance information regarding Buy and Sale Land or Property in Indonesia.


According to Government Regulation of Indonesia Number 24 Year 1997 About Land Registration, Article 37 Paragraph 1, “The transfer of land rights and property rights in the unit through buy and sale, exchange, grants, entering in the company and other act to transfer of land, unless the transfer of rights through the auction, can only be registered if evidenced by the deed made by the authorized PPAT under the provisions of the prevailing laws and regulations”.

Following the regulation above, it can be concluded that one of the ways for foreigners to own or release certain rights of land is by buying and selling. Therefore, buying and selling is done by making Deed of Sale and Purchase in PPAT, thus that registration can be done for changes in physical data or juridical data of land that has been registered to the National Land Agency. Physical data changes occur when the separation, breakdown, or merger of land areas that already registered. Juridical data changes occur for example when the load or transfer of land rights that are already registered.

According to article 1457 Kitab Undang-Undang Hukum Perdata or Civil Code (hereinafter referred to as KUHPer), buy and sale is an agreement with which a Party shall bind itself to submit a goods and the other party do the payment of the promised price. So there are 3 elements in this definition of buy and sale, namely the agreement, submit a goods and pay the price.

Acquisition Provisions of Land Rights for Foreigners

One of the ways to buy land for foreigners is to establish a limited liability company (PT PMA). By establishing a PT. PMA, a foreigner can buy land with the building rights on behalf of the company. Other rights of land that can be purchased by foreigners are the rights of exploitation, rights of use and leasehold.

Buy and sale land or property activity does not break the previous lease agreement (article 1576 KUHPer). For the sale of goods rented, the lease made previously not break unless it has been promised at the time of renting the goods. Likewise, with other rights mentioned above.

May you need more detailed information, do not hesitate to contact us for preparing your plan for doing business in Indonesia. Indoned Consultancy team expert will assist you through every process of buy and sale land or property in Indonesia.

Requirements That Must Fulfill Are :

1. Identity Card of seller and buyer (KTP or Passport),
2. Kartu Keluarga (Family Card) of seller and buyer,
3. Married letters (if the parties already married),
4. Taxpayer ID Card (NPWP) of seller and buyer,
5. The Land Certificate,
6. Payment Receipt of Land and Building Tax (PBB).

Disclaimer:

The information provided here is based on our long experience. In addition, the process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. In either case please contact us  as your consultant to get an up to date information and accurate advice. More Information click here and You can also follow our social media accounts to see the latest information posts. please click on the following links: FacebookInstagramLinkedin, and Twitter.

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