Everything to Know about Real Estate Transaction in Indonesia

Buying real estate in Indonesia must be done thoroughly. From background check to preparing documents, here’s your guide to real estate transaction.

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.

Buying and selling real estate is the most common transaction in this industry in Indonesia.

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 authorised 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. The due diligence process includes identifying the legal status of the property through the provision of original ownership certificate.

Obtain Seller’s Information

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

How Cekindo can Assist

Cekindo is one of the reputable background check and due diligence services providers 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 Cekindo provides the far-reaching background check services.

In the real estate market, Cekindo 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.

Through our background check services, Cekindo is able to provide relevant, important and factual information which is beneficial to your business gains and growth.

If you want to discuss more about our background check services, send us an enquiry through the form below.

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Verified by:​

Pandu Biasramadhan

Pandu is the Consulting Manager at Cekindo. He has extensive experience in working with government agencies. Notably, he has provided market-entry solutions for enterprises in Indonesia and managed regional partnership channels in Southeast Asia. At Cekindo, Pandu aspires to lead the consulting team to provide top-quality market-entry services and maintain a portfolio of global clientele. His specialty is market-entry advisory and business process outsourcing.