On notary fees, Indonesia property transactions are more predictable than most buyers expect: the land deed official’s fee is capped by regulation, and on a large deal the cap falls to 0.25% of the price. The fee is rarely the number that matters, though. Land transfer tax for the buyer and final income tax for the seller are typically many times larger, and a company paying the fee has VAT and withholding to handle on top. This guide sets out the fee caps, the taxes on each side, who pays by default, and a worked example.
In brief:
Only a PPAT can make the registrable deed of sale; a notary drafts the conditional sale agreement and corporate deeds.
PPAT fees are capped at 1% down to 0.25%, depending on price.
The buyer pays land transfer tax (BPHTB) of up to 5%.
The seller pays 2.5% final income tax on the gross price.
Everything else can be allocated by contract.
The short answer
On a Rp4 billion plot, the maximum PPAT fee is Rp10 million. The seller’s final income tax on the same deal is Rp100 million, and the buyer’s land transfer tax can reach Rp196 million. So the fee is worth checking against its legal cap, but the bigger negotiation is usually over who carries which tax and whether VAT applies to the land itself.
Notary or PPAT: two officials, two fee caps
Indonesian land transfers involve two different offices that are often held by the same person. Under Article 37(1) of PP 24/1997, a transfer of land rights by sale can only be registered if it is evidenced by a deed made by a PPAT (Pejabat Pembuat Akta Tanah). The deed of sale, known as the AJB, is therefore a PPAT act.
A notary works around the AJB. The notary drafts the conditional sale agreement (PPJB) when payment is staged or the title is not yet ready, powers of attorney to sell, and corporate deeds when either party is a company. Because one office can issue both bills, it helps to know which rule governs each.
Notary fees: Indonesia property deals carry two separate caps
The PPAT fee is governed by Article 32 of PP 37/1998 as amended by PP 24/2016, and detailed in Article 1(4) of Permen ATR/BPN 33/2021. The cap is a percentage of the price stated in the deed:
up to Rp500 million: at most 1%
above Rp500 million to Rp1 billion: at most 0.75%
above Rp1 billion to Rp2.5 billion: at most 0.5%
above Rp2.5 billion: at most 0.25%
The cap includes the witnesses’ fee, and a PPAT who charges above it faces suspension of up to six months. Read literally, each rate applies to the whole price in its bracket, which creates a step: the cap is Rp7.5 million on a Rp1 billion deal but Rp5.5 million on Rp1.1 billion.
The notary’s own fee for a PPJB follows Article 36 of Law 30/2004: at most 2.5% up to Rp100 million, 1.5% up to Rp1 billion, and by agreement but no more than 1% above that. On a large deal the PPJB cap can be four times the AJB cap.
For companies, two further points apply. If the notary or PPAT is registered for VAT, the service carries VAT at an effective 11% under PMK 131/2024. And a company paying the fee must withhold PPh 21, because PMK 168/2023 treats notaries and PPATs as non-employee professionals, taxed on 50% of the gross fee at progressive rates.
Land transfer tax: Indonesia’s largest buyer-side line
The buyer pays BPHTB, capped at 5% by Law 1/2022, after a non-taxable threshold of at least Rp80 million for the buyer’s first acquisition in that region. The law defines the taxpayer as an individual or a company, so the threshold is not limited to individuals, though the actual figure is set by each regional regulation. The base is the price or the NJOP, whichever is higher.
Timing matters. BPHTB falls due when the PPJB is signed, not only at the AJB; the Constitutional Court rejected a challenge to that rule in September 2024. Separately, a PPAT or notary must obtain proof of BPHTB payment before signing the transfer deed, on pain of a Rp10 million fine per breach. The mechanics are covered in our BPHTB guide, and the full buyer-side budget in the guide to the cost of acquiring land in Indonesia.
The seller’s side: 2.5% final income tax
The seller pays final income tax of 2.5% of the gross transfer value under Article 2 of PP 34/2016. It is levied on the price, not the gain, so acquisition cost does not reduce it. Where buyer and seller are related parties, the base becomes market value. NJOP is not a floor for this tax; it is a floor for BPHTB.
Since 2025 the tax is paid through Coretax. Article 3(5) of PP 34/2016 bars the official from signing the deed until proof of payment, already verified by the tax office, is provided, and DGT Regulation PER-8/PJ/2025 sets that verification at no more than three working days after a complete request. Exemptions such as inheritance exist, but every one of them requires a tax-exemption certificate; none applies automatically.
If the seller is a VAT-registered business, such as an industrial estate operator, the land itself also carries VAT at an effective 11%. For a VAT-registered buyer this is generally creditable input tax, so it is often a cash-flow item rather than a final cost. A private individual who is not VAT-registered charges none.
Property tax for a foreign investor in Indonesia after completion
Once the transfer is registered, the owner pays annual land and building tax, PBB-P2, at a regional rate of no more than 0.5% under Law 1/2022, applied to NJOP after a regional assessment ratio of 20% to 100% and a non-taxable allowance. It applies to companies on the same basis as individuals, including foreign-owned PT PMA. Some regional revenue offices, such as Kabupaten Bogor’s, also ask for proof that PBB is paid up before validating BPHTB on a sale.
Title matters too. A company cannot hold Hak Milik; if a PT PMA buys Hak Milik land, the title must first be downgraded to HGB, an extra step with its own fee, as explained in our page on PT PMA land ownership. A foreign individual can hold a landed house on Hak Pakai, or an apartment unit on Hak Pakai or HGB land, under Article 71 of PP 18/2021.
Who pays what by default
The law fixes the two big taxes: final income tax is the seller’s, BPHTB is the buyer’s. For everything else, the default is Article 1476 of the Civil Code: the costs of delivery are borne by the seller and the costs of taking delivery by the buyer, unless agreed otherwise.
That last clause is the useful one. The PPAT fee, the PPJB fee, registration fees and any VAT on services can be allocated however the parties agree, as long as it is written into the PPJB or a side letter. Where the seller is a company disposing of more than half its net assets, Article 102 of Company Law 40/2007 also requires shareholder approval, unless the sale is part of the business set out in its articles of association.
Worked example: a Rp4 billion industrial plot
Assume a non-VAT-registered individual sells a Rp4 billion plot to a company, the regional BPHTB rate is 5%, the threshold is Rp80 million, NJOP is not above the price, the zone land value equals the price, and the buyer bears the PPAT fee and registration costs:
Seller’s final income tax: Rp100,000,000
Buyer’s BPHTB: (Rp4,000,000,000 − Rp80,000,000) × 5% = Rp196,000,000
Maximum PPAT fee: 0.25% = Rp10,000,000
Registration fee (PP 128/2015): Rp4,050,000
Certificate check: Rp50,000
The buyer’s side comes to about Rp210.1 million, or 5.25% of the price, before VAT on services. A PPJB through a notary could add up to Rp40 million. If the seller were a VAT-registered estate operator, Rp440 million of VAT on the land would also be charged, largely creditable for a VAT-registered buyer. These are ceilings and assumptions, not quotes.
Mistakes that cost time or money
Treating notary and PPAT fees as one flat “1%”.
Budgeting the seller’s tax on the gain instead of the gross price.
Paying BPHTB at the AJB when it was already due at the PPJB.
Forgetting PPh 21 withholding when a company pays the fee.
Leaving non-tax costs unallocated in the contract.
Skipping title checks; run land due diligence before any payment.
A checklist before signing
Confirm the PPAT fee bracket, the notary’s VAT status, the seller’s tax on the gross price and its Coretax verification, the regional BPHTB rate and threshold, paid-up PBB, spouse or shareholder approvals where needed, and a written allocation of every non-tax cost. For the land values behind these numbers, see our review of industrial land prices.
Frequently asked questions
How much are notary fees on an Indonesian property sale?
The PPAT fee for the deed of sale is capped at 1% down to 0.25% of the price under Permen ATR/BPN 33/2021, witnesses included. A notary’s fee for a conditional sale agreement is capped at 2.5%, 1.5% or at most 1% under Law 30/2004. Fees can be negotiated below those caps.
What is the difference between a notary and a PPAT?
A PPAT makes the deed of sale, the only deed that can register a transfer by sale. A notary drafts the conditional sale agreement, powers of attorney and corporate deeds. One person can hold both offices.
What is the land transfer tax in Indonesia?
BPHTB, paid by the buyer, at no more than 5% after a regional non-taxable threshold of at least Rp80 million for a first acquisition in that region. The base is the price or NJOP, whichever is higher, and it falls due when the PPJB is signed.
Do foreign investors pay property tax in Indonesia?
Yes. A PT PMA pays BPHTB when it buys and annual PBB-P2 at a regional rate of up to 0.5% afterwards, on the same basis as a local company.
Is VAT charged on notary fees?
If the notary or PPAT is VAT-registered, the service carries VAT at an effective 11%. Ask about VAT status before agreeing the fee.
Can the buyer and seller split the costs differently?
Yes, except for the two main taxes. Civil Code Article 1476 sets a default, but the parties can allocate fees and registration costs by written agreement.
What happens if the seller’s tax is not paid first?
The PPAT cannot sign. PP 34/2016 requires verified proof of the seller’s final income tax before the deed is executed.
Once the costs on each side are clear, comparing land offers on a like-for-like basis gets much easier. Yardzeal lists industrial and commercial land with the title status and zoning basis stated up front. Browse the current listings when you are ready to compare.
This article is part of our Industrial Land guides.
See all articles on Industrial Land