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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
A
Agen PropertiÂ
An intermediary between property sellers and buyers responsible for finding listings and completing sales.
AgunanÂ
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.
Amortisasi
The process of reducing debt with periodic payments consisting of principal and interest.
Anami
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.
Aparthouse
A landed house with an apartment concept that usually has more than 3 floors but still has ownership rights to the land.
B
Backlog
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.
Broker
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.
C
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.
Cluster
Residential environment with similar building designs and sizes.
Co-broking
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.
D
Demand
Demand for a particular type of property within a certain period.
Developers
Party or company that builds properties.
Down Payment
Advance payment when renting or buying property.
E
Earlybird
Buying property when first offered at a lower price.
Escrow
An intermediary between the seller and the buyer to deposit signature money until the transaction is completed.
F
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.
G
Girik atau Letter C
Certificate of land or building ownership from the village head.
Groundbreaking
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.
H
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.
I
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.
Investor
Real estate transactions with the motivation to buy property to profit from rent or resale.
Indent
Purchasing property with a pre-ordering scheme.
IPL (Iuran Pengelolaan Apartemen)
Maintenance fees for apartments that must be paid by residents to building management.
K
Kopel
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.
L
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.
M
Master Plan
Large-scale property development area by one or several developers.
Mixed Use Development
Property project that encompasses both residential and commercial areas.
N
Negosiator
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.
O
Okupansi
Rate of property unit occupancy.
Owner
Owner of a property.
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P
Property Crash
A situation where property prices sharply decline.
Prosperous
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.
R
RAB (Rencana Anggaran Biaya)
Cost calculation for construction projects.
Ready Stock
Properties that are already built and ready for occupancy.
Recession
A decrease in purchasing power for properties.
Refinancing
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.
S
SBDK (Suku Bunga Dasar Kredit)
Basic interest rate used by banks.
Scout
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.
Supply
Availability of properties to meet demand.
Surveyor
Officer who surveys property locations.
T
TDP (Tanda Daftar Perusahaan)
Company registration.
Tenor
Loan instalment payment period.
Top-up
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.
U
Urban
Urban area.
Y
Yield
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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