Indonesia: cross-border payments and remote closing

An Indonesian purchase is built around a land deed official, the PPAT, rather than around the estate agent. A buyer who lives abroad therefore needs to understand three things: which checks come first, how money and taxes move, and how to sign without being in Bali. This briefing sets out the steps and the mistakes to expect.

The official at the centre

A certified land deed official, the PPAT, is the person authorised to draw up and authenticate the deed of sale and purchase, called the AJB, according to a Gratanet summary (Gratanet). The National Land Agency, BPN, registers the transfer. Many deals begin with a preliminary agreement, often called a PPJB, signed with the seller before the deed. An agency should tell the buyer to appoint the notary or PPAT, or a lawyer working with one, before paying anything beyond a small reservation amount.

Due diligence before money moves

Sources agree on the basic checks:

• compare the land certificate with the register at the land office and confirm the seller is the registered holder
• confirm there are no disputes, mortgages or other claims, because land with a lien cannot lawfully be transferred until it is cleared
• check the zoning and the building permit, particularly in Bali, where zoning has become strict and green-zone land cannot lawfully be built on
• confirm that the title the buyer will hold is one a foreigner may hold, and that the price and size limits are met

Ask the notary to give the buyer a written summary of what was checked.

Taxes and fees at closing

The figures below come from Expatica and Gratanet summaries, with local differences:

• the buyer pays an acquisition duty, BPHTB, of up to 5 percent of the value above a local threshold, which is set and collected locally
• the seller pays income tax of 2.5 percent of the transfer value on an ordinary sale, before registration
• VAT applies mainly to sales by developers and is not uniform for private resales
• notary and PPAT fees depend on the case
• an annual land and building tax follows ownership

Ask the notary for a written estimate for the specific deal and give it to the buyer before the reservation.

How money moves

We did not find a single authoritative description of how foreign money should be routed. Practices described in broker material include paying through the notary's client account or directly to the seller against a signed receipt, with the notary recording the payment in the deed. Agencies should not take client money themselves. Suggested practice:

• agree the payment account and schedule in the preliminary agreement, naming the account holder
• send money from the buyer's own account abroad, in the buyer's name
• keep the transfer receipts together with the contract
• pay only against a document that identifies the property and the stage

For a leasehold, the full lease price is often paid up front. That is a large amount for a right that depends on a notarised lease and a landowner who may later sell, so the buyer should ask the lawyer how the right is protected.

Signing without being there

A buyer who cannot attend can usually appoint a representative by a notarised power of attorney, and a document signed abroad is normally notarised and legalised in the country of signing and translated for use in Indonesia. We did not verify the current requirements, so confirm with the notary, and ask whether the land office will accept the representative for a transfer into the buyer's name. A careful notary will want to see that the buyer actually gave the authority, so expect questions about how and where the document was signed.

Timing

The sources we read give no single timeline, and we do not quote one. In practice the deed is signed once the checks are complete and the taxes are paid, and registration at the land office follows the deed. Ask the notary for an estimate in writing, and tell a remote buyer that the registered certificate or the lease documents may reach them some time after the money has left their account.

Mistakes to expect

• the buyer pays a deposit before the notary has seen the certificate
• the money is sent from another person's account
• the seller is represented by someone who cannot show authority
• a lease price is paid in full on a promise of renewal
• the buyer assumes a villa company is licensed to let when it is not

What to do with this

• give every remote buyer a one-page list of steps and costs before the reservation
• keep your own client file separate from the notary's file
• never hold client money
• tell the buyer to read the notary's checklist and the draft deed before signing

Working with D.H. Realting

D.H. Realting is a trilingual (Russian, English, Polish) overseas-property platform. We introduce buyers, including expats and cross-border buyers, and support the process. Agencies that handle the deal locally and want to be introduced to such buyers can contact us through our partners page.

This briefing is informational only and is not legal, tax or investment advice. Facts were checked on 12 October 2026 from the sources named in the text; rules change, so confirm with a local lawyer before relying on any point.