Property Terms that You Must Understand Before Buying a House in Jakarta
Kumpulan Istilah Istilah Properti yang Wajib Kamu Pahami Sebelum Beli Rumah di Indonesia

Property Terms that You Must Understand Before Buying a House in Jakarta

In the process of buying and selling property, we often encounter many terms that may sound unfamiliar. Understanding these terms is crucial, especially for those involved in the real estate world, whether as investors, buyers, or sellers.

Here is a collection of property terms in Indonesia that you need to know:

Property Terms in Indonesia in Alphabetical Order


Agen Properti 

An intermediary between property sellers and buyers responsible for finding listings and completing sales.


Security which is provided by a debtor to a bank to obtain financing, where if the debtor fails to pay instalments, the asset will be given to the bank.

AJB (Akta Jual Beli)

Official document created by a Land Deed Official (PPAT) marking the transfer of rights over land or buildings due to the sale and purchase process.


The process of reducing debt with periodic payments consisting of principal and interest.


An abbreviation for "Simplified Apartment Ownership," an apartment with a class between subsidized apartments and apartments/condominiums.

Anchor Tenant

A large-scale tenant in a commercial property project such as a mall or modern market aimed at attracting visitors.

Anuitas Rest

Calculation of effective interest charges with annual periods, where if the debtor pays more to reduce the principal of the loan, the interest burden will decrease.


A landed house with an apartment concept that usually has more than 3 floors but still has ownership rights to the land.



The gap between the number of houses built and the number needed by the community.

BBN (Bea Balik Nama)

Cost to change the ownership name of the land.

BP Tapera (Badan Pengelolaan Tabungan Perumahan Rakyat)

An institution that helps manage the finances of the community to own a house.

BPHTB (Bea Perolehan Hak Atas Tanah dan Bangunan)

Tax imposed on property buyers.

BPN (Badan Pertahanan Nasional)

A non-ministerial government agency responsible for land affairs.


An intermediary between property buyers and sellers who profit from commissions.

Bunga Mengambang (Floating Rate)

An interest rate that fluctuates based on Bank Indonesia's policy.

Bunga Tetap (Fixed Rate)

A fixed interest rate from the beginning to the end of the loan period.


Capital Gain

Profit from the sale of investment property compared to the purchase price.

Cash Flow

Cash flow that records the sources and uses of funds.

Cash Back

Offer to receive cash refunds from developer marketing promotions.


Residential environment with similar building designs and sizes.


Property sales cooperation between two property agents.

Cost and Fee

Contractor system in building properties that combines implementation and supervision services.

Cut and Fill

The process of levelling land for property development.



Demand for a particular type of property within a certain period.


Party or company that builds properties.

Down Payment

Advance payment when renting or buying property.



Buying property when first offered at a lower price.


An intermediary between the seller and the buyer to deposit signature money until the transaction is completed.


Fixed Rate dan Floating Rate

Fixed Rate is a fixed interest rate in the cooperation between contractors and customers. Meanwhile, Floating Rate is an interest rate that changes according to government regulations.

Fasum (Fasilitas Umum)

Facilities for public interest such as roads, public transportation, and others.

Fasos (Fasilitas Sosial)

Facilities that can be used by the general public such as health centres, schools, and others.

FLPP (Fasilitas Likuiditas Pembiayaan Perumahan)

Program to provide mortgage loans to subsidized homes with affordable interest rates.


Girik atau Letter C

Certificate of land or building ownership from the village head.


Excavation of building foundations as the initial stage of property projects.

GSB (Garis Sempadan Bangunan)

The outermost boundary of the property that cannot be exceeded in building construction.

GSJ (Garis Sempadan Jalan)

The front boundary of building fences that has been determined in city plans.


Hak Sewa

Right granted from the landowner to the tenant for a certain period.

HGB (Hak Guna Bangunan)

The right to build and own buildings on land for a certain period.

HGU (Hak Guna Usaha)

The right to conduct activities on state land.

HPL (Hak Pengelolaan Lahan)

The right to manage land.


IMB (Building Permit)

Permit required to carry out property development activities.

IPB (Izin Penggunaan Bangunan)

Permit granted to properties that meet building equipment function requirements.


Real estate transactions with the motivation to buy property to profit from rent or resale.


Purchasing property with a pre-ordering scheme.

IPL (Iuran Pengelolaan Apartemen)

Maintenance fees for apartments that must be paid by residents to building management.



Two row houses with a shared design separated by one wall.

Kanto (Kantor Toko)

A property building that serves as both a commercial area and an office space.

KMB (Kelayakan Menggunakan Bangunan)

Permit issued by the Local Government for a newly constructed building.

KPR (Kredit Pemilikan Rumah)

Loan provided to homebuyers with specific financing schemes.

KPA (Kredit Pemilikan Apartemen)

Loan provided to apartment buyers.

KDB (Koefisien Dasar Bangunan)

Percentage comparison between the built-up area and the available land area.

KLB (Koefisien Lantai Bangunan)

Percentage comparison between the floor area that can be built and the available land area, applicable to high-rise buildings.


LTV (Loan to Value)

Ratio between the loan amount and the collateral at the time of loan origination.

Loss Transaction

Error in property purchase calculations that overlook additional costs.


Master Plan

Large-scale property development area by one or several developers.

Mixed Use Development

Property project that encompasses both residential and commercial areas.



Officer negotiating with property owners regarding price and handover.

Notary Services

Public officers that are authorized to create authentic deeds.

Nice Property

Property with good value from all perspectives.

NJOP (Nilai Jual Objek Pajak)

Lowest price of a property used as the basis for tax assessment.

NPWP (Nomor Pokok Wajib Pajak)

Tax identification number.



Rate of property unit occupancy.


Owner of a property.

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Property Crash

A situation where property prices sharply decline.


An area that is beneficial for property investment.

Primary Market

New properties sold to the first owner.

PBB (Pajak Bumi dan Bangunan)

Tax imposed on land and buildings.

PPAT (Pejabat Pembuat Akta Tanah)

An officer who creates authentic deeds regarding land rights.

PPh (Pajak Penghasilan)

Tax imposed on income.

PPJB (Perjanjian Pengikatan Jual Beli)

Initial agreement between property seller and buyer.

PPN (Pajak Pertambahan Nilai)

Tax on sales transactions.

Putusan Banding

Tax court decision on a dispute.


RAB (Rencana Anggaran Biaya)

Cost calculation for construction projects.

Ready Stock

Properties that are already built and ready for occupancy.


A decrease in purchasing power for properties.


Refinancing of a mortgage.

Rukan (Rumah Kantor)

Building that functions as both a residence and a business space.

Ruko (Rumah Toko)

Building that functions as both a residence and a shop.

Rusunami (Rumah Susun Sederhana Milik)

Subsidized apartments.

Rusunawa (Rumah Susun Sederhana Sewa)

Rental apartments.


SBDK (Suku Bunga Dasar Kredit)

Basic interest rate used by banks.


Property location inspector.

Secondary Market

Properties being resold.

Serah Terima

Process of handing over property keys from seller to buyer or third party.

Service Charge

Additional fee for property services.

SHM (Sertifikat Hak Milik)

Document of property ownership legality.

SHGB (Sertifikat Hak Guna Bangunan)

Permission to develop land.

SIPPT (Surat Izin Penunjukan Penggunaan Tanah)

Land use permit.

Sinking Fund

Maintenance fund for public facilities.

Site Plan

Development plan on land plots.

SKK (Surat Keputusan Keberatan)

Decision regarding objections to tax assessments.

SKP (Surat Keputusan Pembetulan)

Decision letter to rectify errors in tax application.

SIUP (Surat Izin Usaha Perdagangan)

Trading business license.

SMF (Secondary Mortgage Facility)

Lender with mortgage guarantee.

SOHO (Small Office Home Office)

Property that combines residence with office.

SPOP (Surat Pemberitahuan Objek Pajak)

Tax object notification letter.

SPPT (Surat Pemberitahuan Pajak Terhutang)

Tax due notification letter.

Strata Title

Ownership right over apartment or flat units.

Sunrise Property

Promising investment area.

Sunset Property

Area with low investment potential.


Availability of properties to meet demand.


Officer who surveys property locations.


TDP (Tanda Daftar Perusahaan)

Company registration.


Loan instalment payment period.


Increasing the loan credit limit.

Topping Off

Installation of building roof as a construction milestone.

Turn Key

Project handover from developer to customer.

Turn Over

Return on investment period.



Urban area.



Profit from property rental value per year.

By understanding these property terms, it is hoped that it can assist in your property transaction and investment process. If you need more information about buying property in Indonesia, feel free to contact our consultants today!

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Primary Property

Interest Rate

Floating Rate

Primary Mortage

Rate information

Interest rate is 4.7% fixed for the first 3 years, after that, the rate will move to a floating rate (currently 11%)


  • Permanent employee/self-employed for at least 1 year in the same company/total 2 years of work
  • Professional/Businessman working for at least 2 years in the same field
  • At least 18 years old or married

General Personal Requirements

  • Photocopy of husband’s / wife’s ID card (if married)
  • Photocopy of Family Card
  • Copy of Marriage Certificate (if married)
  • Photocopy of Tax ID Number of Applicant
  • Salary Slip / Certificate of Income for the last 1 month original
  • Photocopy of 3 months bank statements
  • Developer’s House Booking Letter / Broker’s Cover Letter