Everything to Know about Real Estate Transaction in Indonesia

Everything to Know about Real Estate Transaction in Indonesia

  • InCorp Editorial Team
  • 22 August 2023
  • 4 minute reading time

Buying real estate in Indonesia can be challenging at times as it involves several legal aspects. For example, tax law, property law, family law, inheritance law, and others.

In Indonesia, the Agrarian Law states that the transaction of sales and purchase serves as a proof of title transfer from a seller to a buyer. The law further stipulates that the said transaction must meet two criteria: it has to be transparent and the transaction amount must be fully paid. In addition, the transaction has to be conducted under an authorized officer’s supervision.

In this article, you will read about some of the important things you need to know about real estate in Indonesia.

Due Diligence for Real Estate Transaction in Indonesia

You should not carry out any real estate transaction in Indonesia without proper due diligence before buying a real estate in Indonesia or doing a real estate investment in Indonesia. The due diligence process includes identifying the legal status of the property through the provision of original ownership certificate. That’s why you should always aware of the real estate regulations in Indonesia.

Read more: Real Estate Indonesia and Why Due Diligence is Important in This Sector

Obtain Seller’s Information

If you are a buyer of a property in Indonesia, you need to obtain the following information from your seller:

  • A copy of KTP (Kartu Tanda Penduduk). If the seller has a spouse, you will need to acquire the spouse’s KTP as well. The spouse may have to sign the sale and purchase agreement too if the married couple doesn’t have a prenuptial agreement. In this case, the transaction is considered illegal if you don’t get the spouse’s consent.
  • Family card KK (Kartu Keluarga)
  • Certificate of marriage
  • Original land ownership certificate
  • SPPT PBB (PBB tax payment)
  • NPWP (taxpayer identification number)

Prepare Buyer’s Documents

As a buyer yourself, it is compulsory to have the following documents and information for a valid real estate transaction in Indonesia:

  • A copy of KTP, as previously mentioned, you need to provide your spouse’s KTP if you are married
  • Family card KK with your Residency Registration Number
  • Certificate of marriage certificate
  • NPWP

Real Estate Sale and Purchase Agreement in Indonesia

Of course, the sale and purchase transaction between the buyer and the seller is only legal when it is written officially in an agreement.

This agreement is known as Sales and Purchase Agreement or SPA. It is mandatory for both the buyer and the seller to be present together and sign the SPA. Spouses of the buyer and the seller must sign the agreement too.

Furthermore, you must show your marital agreement if you and your spouse have a separation of property. In this case, a postnuptial or prenuptial document can be used for this purpose, and the spouse does not have to be present for the signing procedure.

Read more: How Can a Foreigner Buy a Property in Indonesia?

How InCorp can Assist

InCorp is one of the reputable background check and due diligence services providers to help foreigner property ownership in Indonesia.

With our professional background check team, we have the capability to deliver optimal results in rapid response times.

Our client base encompasses local and multinational companies; individuals and governments for which InCorp provides the far-reaching background check services.

In the real estate market, InCorp protects property buyers by gathering information that assists you to make informed decisions through preventions of potential legal violations, and reputation and financial damages.

Our discreet and professional services can also be applied in diverse business sectors when it comes to working with potential partners or vendors including helping you buying a real estate in Indonesia.

Through our background check services, InCorp is able to provide relevant, important and factual information which is beneficial to your business gains and growth. Fill out the form below to find out more!

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

Frequent Asked Questions

When a foreigner or their heir move to another country and have not stayed in Indonesia within one year, they must relinquish or transfer ownership rights to someone that meets Indonesian land or property ownership requirements in Indonesia.