You have found the right property, agreed on a price, and are ready to sign. Then comes the question that trips up many first-time buyers in Indonesia: do you go to a notary, a PPAT, or both? As it turns out, these are two distinct roles, and knowing what each one does can protect you from legal headaches down the road. This article breaks it down in plain language.

Notary and PPAT, Two Different Roles

People often use the words interchangeably, and it is easy to see why. In many cases, a single professional holds both titles and operates out of one office. But legally, they serve different functions.

A notary is a public official authorized to prepare a broad range of authentic deeds, including company formation documents, agreements, wills, and gift deeds. A PPAT, which stands for Pejabat Pembuat Akta Tanah or Land Deed Official, is a government-appointed officer whose specific authority covers deeds related to the transfer of land and building rights. Being a notary does not automatically make someone a PPAT, although many PPAT officers also hold a notary license. In a property transaction, both roles tend to complement each other.

The AJB, the Central Document in Every Sale

The document you will hear about most often in any property transaction in Indonesia is the AJB, or Akta Jual Beli. One important clarification: an AJB is not a certificate of ownership. It is a legal document that proves a sale took place lawfully between a seller and a buyer.

Only a PPAT can prepare an AJB. This document is a mandatory requirement when applying to transfer the title at the National Land Agency, known as BPN. Without a valid AJB issued by an authorized PPAT, the title transfer simply cannot happen. This means that even if you have paid in full and received the keys, your name is not yet legally recognized as the owner until the title transfer is complete.

Understanding the Types of Land Certificates

Before signing anything, it helps to understand what kind of ownership document you are dealing with. Indonesian law recognizes several types of land rights.

  • SHM (Sertifikat Hak Milik) is the strongest form of land ownership. It has no expiry date and can only be held by Indonesian citizens. For residential property, this is generally the most desirable type.
  • HGB (Hak Guna Bangunan) grants the right to erect and own buildings on a piece of land, but only for a limited period, generally up to thirty years and renewable. Legal entities such as companies can hold HGB, which is why many properties from developers initially carry this status.
  • Hak Pakai, HGU, and HPL are additional categories with more specific uses and eligible holders.

When buying a property, ask directly about the certificate type and understand what that means for your ownership rights before committing.

How to Verify a Certificate is Genuine

One of the biggest risks in any property transaction is buying a property with a forged certificate or one that is already tied up in a dispute. The good news is that verification has become much easier in recent years.

The Ministry of Agrarian Affairs and Spatial Planning has released an official app called Sentuh Tanahku, available on Android and iOS. Through this app, you can check certificate data using the registered number and land information. For electronic land certificates, the QR code printed on the document can be scanned directly to confirm its authenticity in real time, without needing to visit a BPN office.

You can also check through the official ATR/BPN website using the certificate number. Running this check before any transaction is highly recommended to confirm that the certificate is not being used as loan collateral elsewhere, is not involved in a dispute, and that the recorded data matches the identity of the seller.

Taxes in a Property Transaction

Every property sale in Indonesia involves tax obligations that must be settled before the AJB can be signed. These obligations are generally split between the seller and the buyer.

The seller typically bears the final income tax, known as PPh, which is calculated based on the transaction value. The buyer is responsible for the Land and Building Rights Acquisition Duty, known as BPHTB. The amount of BPHTB is calculated from the acquisition value minus a tax-free threshold, and that threshold can vary between regions because it is set by each local government.

For new properties purchased directly from a developer that is registered as a taxable business entity, VAT usually also applies. For second-hand properties sold between private individuals, VAT generally does not.

One practical point to note: PPAT officers typically will not sign the AJB until proof of tax payment from both parties has been submitted. Plan your budget carefully and sort out these tax obligations well before the signing date. For current rates and regulations, it is worth consulting a tax professional or checking pajak.go.id directly, as rules can change.

The Title Transfer Process

Once the AJB is signed and taxes are settled, the next step is to complete the title transfer at the local BPN office. This is the formal process that replaces the seller’s name on the certificate with the buyer’s name.

The documents typically required include the original AJB from the PPAT, the original land certificate, proof of tax payment, and identity documents from both parties. In special situations such as inheritance, a deed of bequest or gift deed prepared by a notary can substitute for the AJB.

Processing times vary depending on the queue and conditions at each BPN office. Do not assume the deal is done simply because the AJB has been signed. The new certificate in your name is the true legal proof of ownership.

What to Budget Beyond the Purchase Price

Beyond the property price itself, there are several fees and costs to prepare for. The amounts are not standardized and can vary, but they generally include:

  • PPAT service fees for preparing the AJB
  • Certificate verification fees paid before the transaction
  • BPHTB borne by the buyer
  • PPh borne by the seller, which often factors into price negotiations
  • Title transfer fees at BPN

Ask your PPAT for a breakdown of expected costs early in the process to avoid surprises. PPAT fees are generally calculated as a percentage of the transaction value, so the higher the property price, the larger the fee to prepare for.

Closing Thoughts

Notaries and PPAT officers each play a distinct and important role in making a property transaction legally sound. Understanding how they differ, what the AJB does, why certificate verification matters, and what tax obligations apply can save you from costly mistakes. The process may look complex at first glance, but with the right PPAT and proper preparation, it is entirely manageable.

If you are looking for property in Banjarmasin or the surrounding area and would like a no-pressure conversation, feel free to reach out to the Vorneo Property team on WhatsApp.