Introduction to Key Terms and Abbreviations Related to Real Estate in Indonesia

Introducing terms and abbreviations related to real estate in Indonesia.

Government Agencies

BPN (ATR): Ministry of Agrarian Affairs and Spatial Planning

Kementerian Agraria dan Tata Ruang Badan Pertanahan Nasional

This government agency is responsible for the management of land and agrarian issues.

DJP: Directorate General of Taxes

Direktorat Jenderal Pajak

An agency tasked with the administration and collection of taxes, including income tax and value-added tax (VAT).

OJK: Financial Services Authority

Otoritas Jasa Keuangan

The government agency regulating and supervising financial services.

POJK: Financial Services Authority Regulations

Peraturan Otoritas Jasa Keuangan

Regulations and guidelines issued by OJK concerning financial services.

Licenses and Certificates

PPAT: Land Deed Official

Pejabat Pembuat Akta Tanah

An official responsible for creating registration certificates, deeds, and related documents, similar to a judicial scrivener in Japan.

KITAS: Limited Stay Permit

Izin Tinggal Terbatas

A limited stay permit issued by the Indonesian government to foreigners.

ITAP: Permanent Stay Permit

Izin Tinggal TetapA permanent residency permit issued by the Indonesian government to eligible foreigners.

Property Rights

Hak Milik: Freehold Ownership

The strongest form of property ownership in Indonesia, issued by the National Land Agency and exclusively available to Indonesian citizens.

Hak Pakai: Right of Use

A leasehold right available to foreigners under certain conditions. The initial term is 30 years, extendable for up to 80 years in total (30 years + 20 years + 30 years).

HGB: Right to Build

Hak Guna Bangunan

A right granting the holder permission to construct and use buildings on land. Foreigners may acquire this right under specific conditions, with terms similar to Hak Pakai (30 years, extendable to 80 years).

SHMSRS: Condominium Ownership Certificate

Sertifikat Hak Milik Satuan Rumah Susun

A certificate of ownership for units in condominium buildings, available to foreigners who meet specific requirements.

IPL: Service Charge for Condominium Management

Iuran Pengelolaan Lingkungan

Fees collected by condominium management from owners to cover operational expenses.

HPL: Land Management Rights

Hak Pengelolaan atas Tanah

Rights over land managed by the Indonesian government, allowing temporary usage or management. Separate procedures and fees may apply for utilization.

PPJB: Sale and Purchase Agreement

Perjanjian Pengikatan Jual Beli

A preliminary agreement outlining terms such as sale price and handover date. Unlike AJB, it does not transfer ownership but confirms mutual agreement between the buyer and seller. Preparation by a notary is mandatory.

AJB: Deed of Sale and Purchase

Akta Jual Beli

A legal document certifying the transfer of property ownership from seller to buyer. This must be prepared by a notary.

Tax-Related Terms

PPH: Income Tax

Pajak Penghasilan

Tax levied on individuals, businesses, and other entities in Indonesia, managed by the Directorate General of Taxes.

PBB: Land and Building Tax

Pajak Bumi dan Bangunan

A tax imposed on land and buildings in Indonesia, under the jurisdiction of the Directorate General of Taxes.

BPHTB: Land and Building Acquisition Duty

Bea Perolehan Hak atas Tanah dan Bangunan

A tax on the transfer of property ownership, regardless of whether it is through sale, gift, or inheritance. This is managed by local governments, not the Ministry of Finance.

BBN: Title Transfer Tax

Bea Balik Nama

A tax incurred during property ownership transfer. The buyer is typically responsible for payment.

NJOP: Tax Object Sale Value

Nilai Jual Objek Pajak

The assessed value of a property used as the basis for calculating taxes such as PBB and BPHTB.

NJKP: Taxable Sale Value

Nilai Jual Kena Pajak

The taxable value of a property.

NPOPTKP: Non-Taxable Income

Nominal Penghasilan Tidak Kena Pajak

The portion of an individual’s income exempt from taxation, serving as a deductible amount in annual tax calculations.

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