Home Blog Everything to Know about Real Estate Transaction in Indonesia Indonesia | Land Property Ownership | Secretarial Services Everything to Know about Real Estate Transaction in Indonesia InCorp Editorial Team 22 August 2023 4 minutes reading time Table of Contents Due Diligence for Real Estate Transaction in Indonesia Obtain Seller’s Information Prepare Buyer’s Documents Real Estate Sale and Purchase Agreement in Indonesia How InCorp can Assist 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! Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions Can an individual or a business organization be a shareholder in a PMA company, and is there a minimum number required? A limited liability corporation is required by Indonesian company law to have two or more shareholders, who may be either a legal entity or an individual. The foreign investor must find a second shareholder to own shares in the PMA firm for investments that are 100% open, which could be an affiliated party. What are the standard regulations regarding employment in Indonesia? The standard regulations state: Minimum salary of IDR 3.9 mil for the Jakarta region 12-day annual leave (minimum) BPJS coverage Holiday allowance Is there limited responsibility for shareholders in a PMA company? In a PMA Company in Indonesia, shareholders typically have limited liability, meaning they’re not personally liable for agreements or losses beyond their shareholding, except in certain circumstances. Liability may extend if the company isn’t properly established or if shareholders exploit the company in bad faith, engage in unlawful acts, or deplete company assets to the detriment of creditors. Get in touch with us. 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