Bali Real Estate Glossary of Terms

Bali Real Estate Glossary of Terms


This article is simply a guide to real estate terms often used in Indonesia and their English equivalent (which in some cases, can be difficult to find), and should be used as a basic reference to some but not all elements of real estate prior to any property dealings.

However, we do recommend that before taking on the task of buying or selling your property, that you acquire the expert advice of a lawyer, property consultant or speak with a notary, who can assist you further and give you professional legal advice.

Sertifikat Hak Milik (SHM)
Freehold certificate of ownership, only for Indonesian nationals
Hak Pakai
Renewable Right of Use certificate of ownership (over a SHM certificate)
Hak Sewa
Leasehold certificate of ownership
Hak Guna Bangunan (HGB)
The rights given to a registered company, including PMAs, to use and develop land for commercial purposes
PMA – (Penanaman Modal Asing)
An Indonesian foreign owned entity, which can be 100% owned by foreigners.
Pondok Wisata
License to rent out a small property or homestay with up to 5 bedrooms
Melati Hotel
Hotel license over 5 bedrooms
Izin Mendirikan Bangunan (IMB)
Essentially the building permit that also serves as a registration document for the building
Calon Berdasar Surat Kuasa
Nominee based on Power of Attorney
Notaris/PPAT (Pejabat Pembuat Akta Tanah)
Notary Public/Land Titles Registrar – A public official who is authorized by the state to make a deed of transfer of land and the deed of assignment of land rights according to laws and regulations
Tata Ruang – Spatial/Zoning
Zoning regulates the uses to which land may be put, or it may regulate building height, lot coverage and similar characteristics or a combination of these
Units of measurement
1 Are = 100m2
10 Are = 0.1 Hectare
10 Are = 1000 Square Meter
10 Are = 0.2471 Acre
10 Are = 10763.9104 Square Foot
10 Are = 1195.547 Square Yard
100 Are = 1 Hectare
Banjar
Community Level, Local Governance Council of Bali
Tanah Adat (Adat Land)
Unregistered land not covered by The Basic Agrarian Law of 1960
Joglo
A type of traditional vernacular house of the Javanese people (Javanese omah). The word joglo refers to the shape of the roof

Bali Property Taxation

Pajak Bumi Banguanan (PBB)
Land & building tax
Nilai Jual Objek Pajak (NJOP)
Sale value of the property/Tax object sale value
PBB rate is as follows:
NJOP VALUE PBB
Less than IDR 200 million (USD 14,331.78) 0.01%
IDR 200 million–2 billion (USD 14,331.78–143,317.81) 0.1%
IDR 2–10 billion (USD 143,317.81–716,589.04) 0.2%
Above IDR 10 billion (USD 716,589.04) 0.3%
Bea Perolehan Hak Atas Tanah & Bangunan (BPHTB)
Individuals or companies obtaining rights to land or buildings are required to pay a Land and Building Transfer Duty of 5%

TAX ON ACQUISITION OF LAND AND BUILDING (BPHTB)

Property Value

IDR 2,300,000,000
Less: Tax-Exempt Amount IDR 80,000,000
= Taxable Value IDR 2,220,000,000
Tax on Acquisition of Land and Building 5% 111,000,000.00

Government Administration Offices

Dinas Cipta Karya
Department of Human Works District Badung
Dinas PU Departemen Perkerjaan Umum
Department of Public Works
Badan Perencanaan Pembangunan Daerah (Bappeda)
Regional Development Planning Agency
Dinas Tata Ruang Kota & Pemukiman
Office of City Planning & Settlements
Badan Pertanahan Nasional (BPN)
National Land Agency
Notary/Pejabat Pembuat Akta Tanah (PPAT)
Notary Public
Sekaha Subak
Agricultural Association in Bali

Disclaimer:

As we are not qualified legal advisers, we can only provide a general guideline to some of the terms often used in Bali real estate.

If you wish further information, we recommend that you contact a Lawyer/legal adviser or speak with a notary, who can help to answer any legal questions which you may have.