Procedure 1.

Land certificate examination at the Land Office

Time to complete:

3 days

Cost to complete:

Rp. 25,000

Comment:

A land certificate examination is carried out by a Land Deed Official. If the land book concerned is available at the Land Office, it usually takes a few hours to 1 day. However, sometimes the land book is unavailable, misplaced or being used by another division of the Land Office, so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office.
The land title search would also involve a check at the local city planning office located at the local government office to determine the intended use of the said plot of land, whether for residences, industry or green belt. No written statement is given, but a note made on the certificate saying 'Has been examined and according to the Land Registry/Land Book at the Land Office, dated_______, time ________' and initialled by the officer at the Land Office.

Procedure 2.

Seller pays transfer tax at a bank

Time to complete:

1 day (simultaneous with procedure 3)

Cost to complete:

5% of property price (Transfer Tax)

Comment:

The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value.
Taxes paid to the Central Government are at a bank (only between 8 am and 10 am everyday) appointed by the State Treasury by the State-owned bank (Bank BUMN); those to the local government are paid at the Local Government Bank (Bank Badan Usaha Milik Daerah) and/or other private commercial bank (Article 4.2 of Law No. 7/1983, amended by Law No. 10/1994 and Law 17/2000 concerning Income Tax) and Parts 2.1 and 5.1 of the Director General of Taxation Circular No. SE-04/P.J.33/1996 dated August 26, 1996.

Procedure 3.

Buyer pays Tax on Acquisition on Land and Building

Time to complete:

1 day (simultaneous with procedure 2)

Cost to complete:

5% of (property price minus Rp. 60,000,000 which is tax-free) (Tax on Acquisition of Land and Building)

Comment:

The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% of the sale value or transfer value.
The BPHTB Formula: The seller pays the BPHTB in the amount of 5% x (Sale value or Transfer value or Nilai Perolehan Obyek Pajak or NPOP – Non-Taxable Sale Value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak or NPOPTKP which is determined regionally, maximum is up to Rp. 60,000,000.) (According to Article 7 of Law No. 20/2000, concerning the amendment of law No. 21/1997 concerning the Tax on Acquisition of Land and Building). In Jakarta, the NPOPTKP is Rp. 60,000,000.
This tax is paid at a bank appointed by the State Treasury to accept tax payments or at a post office where the land is located.

Procedure 4.

Execution of sale and purchase of Land Deed by a notary public appointed by the Head of the National Land Office or a local Head of a Sub-District

Time to complete:

3 days

Cost to complete:

1% of the property value

Comment:

The execution of the sale and purchase of Land Deed is made before Land Officials, namely a notary public appointed by the Head of the National Land Office (PPAT) or a local Head of a District (Camat PPAT), after the taxes in procedures 3 and 4 have been paid. For convenience, those payments are usually made by the notary three days before the execution of the sale-purchase deed.

The documentation shall include:
-Original land certificate
-Evidence of the latest payment of Tax on Land and Building (PBB). Every year, the local PBB Tax Office issues a tax assessment to land owners. By custom, the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months--though in practice the office will check the last 10 years. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner.
-Evidence of payment of Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2)
-Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3)
-Evidence of deed of Company Establishment which was already authorized by the Ministry of Justice
-Company Tax-Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4)
-Deed of Establishment and its amendments of both the seller and purchaser;
-Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser
-Advise Planning from the City Administration Institution
-Permit for Building Establishment

Procedure 5.

Registration of the Land Deed at the local Land Office under the name of the buyer

Time to complete:

30 days

Cost to complete:

Rs. 25,000 (registration fee) + Stamp duty of Rp. 6,000 per document (2 required)

Comment:

Registration of the Land Deed at the local Land Office to have the purchaser’s name registered and recorded in the land certificate.
At the latest of 7 (seven) days as of the signing date of the sale and purchase of Land Deed, the notary submits such deed including its supporting documents to the Land Office, but in practice the wait is much longer because of the backlog. (Article 40 sub 1 of Government Regulation No. 24/1997 concerning the Land Registration.) If the filed documents are deemed to be in complete order, in theory, the registration process should be completed within 14 days. The Land Office crosses out the name of the previous owner and inserts the name of the buyer, stamps and signs it.

Procedure 6.

Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer

Time to complete:

1 day

Cost to complete:

no cost