The Role of a Notary (PPAT) in Property Transactions

In Indonesia, every property transaction (leasehold, freehold, Hak Pakai or HGB through a PT PMA) must go through a licensed notary/PPAT (Pejabat Pembuat Akta Tanah). The notary acts as the official authority to draft, legalize, and register the transaction with the government.

Why is a notary necessary?

1. Property sales are only legally valid when executed by a notary/PPAT.

2. The notary ensures that the buyer, seller, and property documents are authentic and comply with Indonesian law.

3. Without a notarial deed, your ownership or lease rights cannot be registered or enforced.

What does the notary do during the property sale?

• Due Diligence – Verifies ownership certificates, land zoning, permits (PBG/IMB, SLF), and ensures no double ownership or disputes.

• Drafting Contracts – Prepares the Deed of Sale & Purchase (Akta Jual Beli) or Lease Agreement (Salinan Hak Sewa)

• Payment Handling – Coordinates escrow payments or potentially staged transfers to protect both parties.

• Taxes & Fees – Calculates and processes buyer’s tax (BPHTB) and seller’s income tax (PPh).

• Registration – Submits the transaction to the National Land Agency (BPN) so the new ownership/lease is officially recorded.

How are notary fees structured?

Normally, the buyer chooses the notary, since they need to ensure the property is legally safe. However, both parties must agree on the notary used.

Notary fees are usually 1% of the transaction value, though sometimes negotiable depending on the complexity and size of the deal.

Can a foreigner appoint a notary directly?

Yes. Foreign buyers (via leasehold or PT PMA) can use a notary.
The notary will provide bilingual contracts (Indonesian and English) to avoid misunderstandings.