Procedures and cost to build holiday rental

Jerome_indonesia

New Member
Joined
Feb 8, 2020
Messages
1
Hi everyone,

In the process of buying a land to build some holiday rental I had a quote for various procedures. Does those price sound correct to you ?
-Cost of Convert the Title from SHM to HGB: 20 millions
-cost of transfer name of land certificate: 10 millions

Also, to what correspond Izin Teknis (Technical Permit), and Ijin Lokasi (Location Permit). Each of the procedure is quoted 10 millions, are they mandatory ?

I precise that I'm buying the land thru a PT/PMA and want to do all the legal procedures in order to be fully legal.

Thanks in advance for your help.
 

harryopal

Well-Known Member
Charter Member
Joined
Aug 4, 2016
Messages
1,104
Building and buying land? You are about to enter a minefield. Go to search and type "building" there are already a lot of posting that may address some of your concerns,
 

jstar

Mr. 10,000
Joined
Jul 31, 2016
Messages
4,304
The questions are too generic to be answered:

The prices of moving between HGB and HM depend on a number of factors, for instance size of the land and NJOP. If bigger than 600 m2, there will be more work and costs involved. And if they use a notary, his/her fee is also included.

Izin Teknik is a collective name of permits, it can be environmental, preparing the land, etc. etc. So better find out first what they are talking about. And I can not imagine they would go through the hassle if not necessary.

A location permit is necessary if a company acquires a piece of land.

NB: This is Indonesia, so you should always negotiate the price.
 
Last edited:

Sarah

New Member
Joined
Feb 15, 2020
Messages
20
Depends on the city. Many Cities only have SHGB either you are foreigners or locals. I could help you out but I need more details. I own a company so I know many things. Note: Government have the right to change SHM to SHGB at any time they want and usually it depends on the governor you have every term. Even you have SHGB, you don’t pay much every 40 or 60 or 80 years.
 

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