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Procedures and cost to build holiday rental

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  • Procedures and cost to build holiday rental

    Hello everyone,

    In the process of buying a land to build some holiday rental I had a quote for various procedures. Does those price sound correct to you ?
    -Cost of Convert the Title from SHM to HGB: 20 millions
    -cost of transfer name of land certificate: 10 millions

    Also, to what correspond Izin Teknis (Technical Permit), and Ijin Lokasi (Location Permit). Each of the procedure is quoted 10 millions, are they mandatory ?

    I precise that I'm buying the land thru a PT/PMA and want to do all the legal procedures in order to be fully legal.

    Thanks in advance for our help.

  • #2
    I never had this type of experience , so I made a quick search in the internet .

    I didn't find the cost/fees especifically for your case , so you can only have an idea of that from cases of "Hak Guna Bangunan/Hak Pakai to Hak Milik" (see links below) . I would guess that for your case , if the fees differ , the fees would be lower (correcting from 2016 to 2020) .

    I suggest you to check prices with many notaries & PPAT , because each of them may offer you a different price [you can check notaries in or in the internet for something like "notaris & PPAT di (city)"] . , Okt 2016 (fees for HGB to HM) , Sept 2016 (fees for Hak Pakai to Hak milik)

    http://www.livinginindonesiaforum.or...-house-in-indo (Hak Pakai for individuals - Regulations)


    From what I learned , it seems that you could buy , for example , a Hak Pakai land as an individual or through your PT PMA , and some differences are :
    - through a PMA it would be for 45 years + 25 years
    - as an individual it would be for 30 years + 20 years + 30 years
    - as an individual I think the land must be for your residence only .


    From (Universitas Indonesia , 2010)
    3. Land Rights for Foreign Investment (PMA)
    In Article 22 paragraph (1) of (Law) UU Number 25 Year 2007 concerning Investment is determined that investors are given the right to use land in Indonesia. The right to land that can be used by investors for different investment activities between one with others depend on the type of land rights. The following are the land rights provided for investors for a period of time based on Article 22 Paragraph (1) of (Law) UU Number 25 Year 2007 :
    1. Hak Guna Usaha (HGU : 60 +35 years);
    2. Hak Guna Bangunan (HGB : 50 + 30 years);
    3. Hak Pakai (HP : 45 + 25 years) .
    ... the time period for the use of land granted to the investors are very long. This is contrary to the time period specified in (Law) UU Number 5 of 1960 concerning Basic Agraria Rules and Government Regulation Number 40 of 1996 concerning Hak Guna Usaha, Hak Guna Bangunan , and Hak Pakai . Besides contrary to both regulations, the time term for the use of land rights as stipulated in Law Number 25 of 2007 concerning Investment is also contrary to the spirit and souls contained in Article 33 paragraph (2) and (3) of the Basic Law 1945 which provides the basis for the birth of authority as set forth in the National Land Law as stipulated in UU Number 5 , 1960 .


    From , April 2016
    Tips for buying land safely
    If you already know how to take care of certificates, it is time for you to choose and buy land. If you are going to invest in land, it is better to pay close attention to safe ways to buy land. Because, at this time more and more cases of land disputes or land that often end up in financial loss . For that, if you want to buy land, you should consider the following safe steps.

    1) Check the land first, both the contour of the land or the potential of the land. In addition, first look at the location of the land, whether strategic or not.
    2) Make sure the land documents are still complete and valid, including their ownership. If the land is already certified, check whether the certificate has changed hands or not. You do this by asking for SKPT (Land Registration Certificate) at the local Kantor Kelurahan . If the land is not yet certified and is still in the form of a "girik", you should check the validity of the evidence of ownership.
    3) To ensure the validity of the land certificate to be purchased, use the notary & PPAT service to check it. PPAT will check the authenticity of the land certificate to the National Land Agency (BPN).
    4) If the land certificate is declared valid or not problematic in any case, the next is to make a Deed of Sale (AJB) by PPAT.
    5) Submit the AJB file to BPN to take care of the name of the purchased land certificate. Submission of documents for the transfer of names no later than 7 days after the signing of the AJB to be processed immediately. Usually, 2 weeks after the signing, the buyer will immediately get a new certificate in the new name as well.
    6) After all the above procedures have been completed, the next thing to do is take care of tax payments via PPAT. But you can also pay for it yourself. For BPHTB, which was originally paid to the state treasury, now must be paid to the cash of each local government through the Regional Revenue Service (Dipenda).
    Last edited by marcus; 08-02-20, 17:26.