Frequently Asked Questions About Buying in Kedungu

A PPAT, the licensed land-deed official, matches the certificate to what BPN holds on file, screens for existing liens, and confirms the seller actually has the legal capacity to sell before drafting any transfer deed.

BPHTB, the land and building rights transfer duty, tops out at a 5% rate on the transaction value whenever a registered right such as Hak Milik, HGB or Hak Pakai changes hands.

Most business activities in Indonesia, including standard restaurant and villa-rental operations, are open to full foreign ownership by default under the Positive Investment List, unless a specific activity carries its own restriction.

Since BKPM Regulation 5/2025, reported paid-up capital sits around IDR 2.5 billion, while the total investment plan requirement remains IDR 10 billion per business code per location, land and buildings often counted in property sectors.

Perda Bali No. 4/2026 allows administrative sanctions, fiscal penalties and criminal liability for illegal farmland conversion, on top of forced demolition and restoration of the site's original agricultural function.

Yes. Nine platforms, including Airbnb, Booking.com and Agoda, cross-check every listing against the government's own licence records, under a deadline of 31 May 2026, extended from an original March date.

A foreign-backed rental typically needs tourism-zoned land, a commercial-use PBG permit, a safety-standard SLF certificate, and an NIB verified against the right KBLI code, a process reported to take 6 to 12 months.

No. Pondok Wisata licences are restricted to Indonesian-citizen individuals or cooperatives, so a foreign owner must operate a villa-rental business through a PT PMA under the correct commercial KBLI instead.

Residents for tax purposes owe a flat 10% on gross rental income, final and non-negotiable. Anyone taxed as a non-resident faces 20% withholding instead, though a valid tax treaty and domicile certificate can cut that rate substantially.

A registered business tenant, such as a company, must withhold and remit the tax itself. Between two private individuals, the landlord self-remits and issues their own withholding proof.

PBB, the annual land and building tax, tops out at 0.5%, applied once a non-taxable threshold is subtracted from the assessed value; each regency sets its own precise rate and threshold.

Yes, separately from anything you owe. Foreign tourists have paid a Rp150,000 provincial levy since February 2024, funding cultural and environmental programmes, and it has no bearing on your own tax position.

You choose a structure matching your status, your notary runs title and zoning checks, you sign a preliminary agreement, pay in milestones, then sign the final deed before a PPAT.

Smaller projects are typically reported at 10 to 12 months from the start of construction. Larger or more complex builds commonly run 9 to 18 months, sometimes longer, per developer reporting.

No. Use your own independent notary rather than one the seller suggests, and never pay a referral fee for the introduction, standard practice we follow on every deal we handle.

Payments are tied to construction milestones rather than paid as one lump sum, with each stage negotiated in the contract. Your own notary should confirm each milestone before you release funds.

Free zone check. Send a pin, a screenshot, or just the road name. Usually answered same day.

Nothing to you as a buyer on a sourcing deal. We are paid by the sell side, standard practice here, and we will tell you which side we are on before you ask.

No. We publish yield projections and label them as projections. We do not have twelve months of our own booking data, so we will not invent an occupancy figure to close a sale.

We will send the deeds, the zoning confirmation and the build specification before you pay anything. Get your own notary to read them. We will point you at people we have used and we do not take referral fees for it.

If your question is not covered above, it is probably answered on one of the guides linked throughout this site, or you can put it to us directly and get a straight answer back.