Property Term & Definition

Are: A Balinese unit of measurement for land. An "are" measures 10m X 10m.

Badan Pertanahan Nasional: The National Land Agency.

Bale: A Balinese style gazebo. Often a simple platform with an alang-alang roof set poolside.

Banjar: Literally, a "sub-village".The smallest unit of the Balinese community structure, the Banjar is very active in community life. All land owners are members of their local Banjar. The Banjar handles a number of community responsibilities including often basic services like security for the area, management of garbage collection, and other essential services. Good relations with your local Banjar is a must.

Certificate Tanah: Title certificate of the land.

Dijual: The Indonesian word meaning "for sale".

Dikontrakkan: The Indonesian word meaning "for lease".

Gambar Denah: Essentially a site plan.

Shows boundaries of the land and all solid/permanent structures (note: in Bali swimming pools and Bales – anything without walls- do not count as permanent structures!).

Gambar Lokasi: Map with streets, trees, and land marks.

Hak Guna Bangunan (“HGB”): This is a type of leasehold title that includes land with the right of construction. This form of title is available to Indonesia individuals, Indonesian Companies, and Indonesian Companies controlled by foreigners (known as PMA’s, see below). This type of title must be renewed every 20 years by payment of an HGB tax.

Hak Milik: A form of Title. This form resembles to freehold title in UK, Australia, US and can only be held by an Indonesian individual.

Hak Pakai: A form of Title. This form is similar to leasehold title and is technically, the right of utilization of state land. The maximum length of lease is the issue that causes most discussion, with the stated maximum allowable lease terms varying between 20 years + additional 20 years renewal, to 20 years + 30 years + 20 years, to 25 years + 25 years up to 60 years + 60 years.

Nilai Jual Obyek Pajak ("NJOP"): The value of the land, as assessed for certain tax purposes. This valuation is normally substantially less than market value.

Nominee structure One of the most popular for single structure ownership by foreigners. Essentially a buyer puts land ownership in an Indonesia nominee’s name who signs a series of legal agreements giving up their rights to the land until a sum of money is ‘repaid’. The process has gotten very refined over the last few years with the multiple agreements and willingness of the land office to register a foreigner having debt on land (hak tanggungan) at the cantor agrarian itself has facilitated this. One of the issues with nominee structures is that, understandably, purchasers prefer to have some sort of relationship with their nominee. This can make it impractical for most developments, owing to the fact there are multiple buyers.

Notaris: The Indonesian equivalent of a Notary Public, with powers roughly equivalent to their Western counterpart.

PMA: A common form of public corporation in Indonesia. This form of corporate entity can be held by foreigners

Tanah: The Indonesian word meaning "land".
Undergoing MyBlogLog Verification