A factory for sale in Indonesia is usually an existing building on HGB or SHM land, sold through a deed signed before a land deed official (PPAT) and registered at the land office. Before price, four things decide whether the deal works: the land title, the building’s PBG and SLF, the rule that industry should sit in an industrial estate, and the tax bill on each side. Listing portals show asking prices; this guide covers what sits behind them.
The short version:
Title: companies usually hold HGB. Check the certificate at the land office before the deed.
Location: under PP 20/2024, industrial companies must generally locate in an industrial estate.
Costs: 2.5% final income tax for the seller, BPHTB of up to 5% for the buyer, VAT if the seller is VAT-registered, and a capped PPAT fee.
Structure: buy the land and building (asset deal) or the company that owns them (share deal).
What is on the market when a factory or warehouse is for sale in Indonesia?
A factory or warehouse for sale in Indonesia can be anything from a small workshop to a large plant with machinery. On 2 November 2026, 99.co’s “Pabrik Dijual di Tangerang” page showed 1,227 listings; those on the first page ranged from Rp3.3 billion for 504 m² on SHM land to Rp200 billion. At the large end, JLL lists a 13.2 ha former sweetener factory in Modern Cikande with machinery, price undisclosed.
These are asking prices, not transactions. For land, CBRE data put the average industrial land price in Jabodetabek at around Rp2.6 million per m² in Q3 2026, as reported by Kontan. Estate-by-estate figures are in our industrial land price guide.
Who can buy a factory for sale in Indonesia?
A factory for sale in Indonesia can be bought by an Indonesian citizen or by a company established under Indonesian law, including a PT PMA. Under Article 34 of PP 18/2021, those are the parties that can hold Hak Guna Bangunan (HGB); a foreign individual cannot. Article 37 sets HGB on state or HPL land at up to 30 years, extendable by up to 20 and renewable for up to 30, so check how many years remain on the certificate.
Some smaller listings are on Hak Milik (SHM) land, which only Indonesian citizens and a few designated bodies can hold under the Basic Agrarian Law. A commercial company buying SHM land generally needs the right converted to HGB, an extra land office step. Our guide to land ownership for a PT PMA explains the options.
Where the plot’s HGB sits on HPL land, as in Batam and some state-owned estates, Article 13(2) of PP 18/2021 requires a recommendation from the HPL holder for a transfer.
Can a factory outside an industrial estate still be used for industry?
Under PP 20/2024, a new industrial company generally has to locate in an industrial estate, so a factory outside one usually suits it only if an exception applies. Article 62(1) of PP 20/2024 says industrial companies that will run an industry must locate in an industrial estate.
The exceptions are in Article 62(2) and (3): regencies or cities without an estate, areas with a special economic zone that has an industry zone, estates whose plots are all taken, small industry, low-pollution medium industry, and industries needing special raw materials or a special location. Article 62(4) still requires the area-based exceptions and low-pollution medium industry to sit in an industrial zone (KPI). Before buying a standalone factory, confirm which exception applies and check the plot’s spatial designation; our KKPR guide covers that check.
What should you check before buying an existing factory?
The key checks on an existing factory are the land title, building permits, environmental approval and building fit.
Land certificate. Check it at the land office. Under Article 39(1)(a) of PP 24/1997, the PPAT must refuse to make the deed if the certificate does not match the land office registers. SIP Law Firm’s checklist adds mortgages (Hak Tanggungan), blocking notes, disputes, boundaries and physical occupation. See our land due diligence guide.
PBG and SLF. An SLF must be held before a building is used, under Article 274 of PP 16/2021, and an SLF for a non-residential building is valid for five years. Check both documents and the SLF expiry date; our PBG and SLF guide explains the rules.
Environmental approval. Under Article 3(1) of PP 22/2021, every business activity with a significant or non-significant environmental impact needs environmental approval. It is issued for the activity and its responsible party, so a buyer continuing the same activity usually needs it amended to its own name, and a different activity needs a new approval.
Building fit. Compare clear height, floor load and power supply with your process, using the benchmarks in our standard factory building guide.
Property tax. Ask for recent PBB receipts; the NJOP on the bill also matters for BPHTB.
How does a factory sale work in Indonesia?
A factory sale in Indonesia is completed when the parties sign a sale deed (AJB) before a PPAT and the land office registers the transfer. Under Article 37(1) of PP 24/1997, a transfer by sale can only be registered with a PPAT deed.
Agree terms and run due diligence.
Pay the taxes. The seller pays the 2.5% final income tax before the deed, and the buyer pays BPHTB. Under Article 7 of PP 34/2016, the land office processes the transfer only with proof of the seller’s tax payment.
Sign the AJB before the PPAT, who checks the original certificate.
Registration. The PPAT must submit the deed to the land office within seven working days (PP 24/1997, Article 40). Under Permen ATR/BPN 3/2023, offices on the electronic system receive deeds electronically and examine them within five working days of the application being confirmed.
No single regulation sets a timeline for the whole deal; due diligence and any change of land right vary by property.
What does it cost to buy or sell a factory in Indonesia?
The main costs of a factory sale in Indonesia are the seller’s income tax, the buyer’s BPHTB, VAT when the seller is VAT-registered, and the PPAT’s fee.
Seller’s income tax: 2.5% final tax on the gross transfer value, under Article 2 of PP 34/2016.
Buyer’s BPHTB: up to 5% under Article 47 of UU 1/2022, on the sale value (or the NJOP if the sale value is lower or unknown), minus a non-taxable amount of at least Rp80 million set by each region. See our BPHTB guide.
VAT: a VAT-registered (PKP) seller charges VAT at an effective 11% under PMK 131/2024, and land counts as a taxable good. A PKP buyer can generally credit it, according to DDTC.
PPAT fee: capped by Permen ATR/BPN 33/2021 at 1% for deals up to Rp500 million, falling to 0.25% above Rp2.5 billion. Our notary and PPAT fee guide has the full bands.
A worked example: for a Rp20 billion asset sale, the seller’s income tax is Rp500 million. The buyer’s BPHTB is up to about Rp996 million (5% of Rp20 billion minus Rp80 million), and the PPAT fee is capped at Rp50 million. If the seller is a PKP, VAT of Rp2.2 billion is generally added on top.
Asset deal or share deal: which suits a factory sale?
An asset deal transfers the land and building; a share deal transfers the company that holds them. Both use the same four attributes below.
Asset deal
What changes hands: the land right and the building, through a PPAT deed and land office registration.
Transfer taxes: the seller’s 2.5% income tax and the buyer’s BPHTB both apply.
VAT: charged if the seller is a PKP.
Liabilities: the buyer mostly takes the property, not the seller’s company history.
Share deal
What changes hands: the shares of the company that holds the HGB, under the Company Law (UU 40/2007).
Transfer taxes: no BPHTB, because the land holder does not change. The seller’s gain on unlisted shares is taxed under the income tax rules; for foreign sellers the buyer withholds tax under PMK 81/2024, according to DDTC.
VAT: a share transfer is outside VAT under Article 4A(2) of the VAT Law.
Liabilities: the buyer inherits the company’s tax and legal history, so DDTC recommends tax due diligence, warranties and indemnities.
A share deal tends to suit a running plant; an asset deal is cleaner for an empty building.
Should you sell or lease an existing factory?
Leasing an existing factory may reach more occupiers than selling it. Of the 77 active requests on Yardzeal’s client requirements board on 2 November 2026, 43 ask to lease a factory or warehouse, and only one factory request (about 5,000 m² in Batam) explicitly mentions buying. Another 11 are for land, 6 of them to buy, a sign that some occupiers who want to own prefer to build. The board reflects Yardzeal’s own enquiries, not the whole market.
The two can be combined. Under Article 1576 of the Civil Code, a sale does not end an existing lease unless the lease reserved that right, so a factory can be sold with a tenant in place. Compare the routes with our guides to warehouse rent prices, leasing a warehouse or factory and build to suit.
What are the common mistakes when buying or selling a factory?
Most mistakes come from treating a factory as a price per m² rather than a bundle of rights, permits and taxes.
Comparing building prices without the land. Plot-to-building ratios vary widely.
Assuming permits carry over. Approvals issued to the seller usually need amending or replacing.
Ignoring the location rule. A standalone factory may not suit a new industrial company.
Overlooking the HGB term. A short remaining term means planning an extension early.
Leaving out VAT and BPHTB. Together they can add up to about 16% to the cash needed at signing, even if the VAT is later credited.
FAQ
Can a foreigner buy a factory in Indonesia?
Not as an individual. A foreign investor usually buys through a PT PMA, an Indonesian company with foreign shareholders, which can hold HGB under PP 18/2021. If the land is SHM, the right generally needs to be changed to HGB as part of the purchase.
Is there VAT on buying a factory in Indonesia?
Generally only if the seller is VAT-registered (PKP); transfers of a business between PKPs can be excluded. In that case VAT is charged at an effective 11% on the sale, including the land. A buyer that is also a PKP can generally credit it, so for many companies it is mainly a cash-flow cost.
Is it better to buy an existing factory or buy land and build?
An existing factory is faster to occupy if the building, permits and location already fit. Buying land and building takes longer but gives full control over the specification. Compare the total cost of each, including taxes, upgrades and the time before production starts.
What is the biggest risk when buying an existing factory?
The biggest risks usually sit in the title and the location. A mortgage, a blocking note or a boundary dispute can delay or block the deed until resolved. A standalone factory may also not suit a new industrial company under PP 20/2024 unless an exception applies.
How long does the transfer take after signing the deed?
The PPAT must submit the deed within seven working days, and under the electronic system the land office examines it within five working days of the application being confirmed. The whole deal takes longer, because due diligence and any change of land right come first.
Who pays the PPAT fee in a factory sale?
The regulation caps the PPAT fee but does not fix which party pays it. It is agreed between seller and buyer, so put it in the heads of terms alongside each side’s taxes.
Finding buyers or occupiers for a factory for sale in Indonesia
If you are preparing a factory for sale in Indonesia, knowing what occupiers ask for helps set a price or a lease offer. The client requirements board lists the sizes and locations companies need now. To see current factory and warehouse requirements, visit Yardzeal.
This article is part of our Warehouses & Factories guides.
See all articles on Warehouses & Factories