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Land Purchase and Development Process Guide

The document outlines the process for land purchase and property development, detailing stages from negotiation and legality verification to construction and obtaining a Certificate of Occupancy (SLF). It also describes the registration requirements and approval process for establishing a crypto company, including obligations during the registration period and necessary documentation. Additionally, it covers the requirements and authority for becoming a notary, including education, experience, and operational limitations.

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4 views6 pages

Land Purchase and Development Process Guide

The document outlines the process for land purchase and property development, detailing stages from negotiation and legality verification to construction and obtaining a Certificate of Occupancy (SLF). It also describes the registration requirements and approval process for establishing a crypto company, including obligations during the registration period and necessary documentation. Additionally, it covers the requirements and authority for becoming a notary, including education, experience, and operational limitations.

Uploaded by

officeliveinbali
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

I.

Process Flow of Land Purchase to Property Development

A. Land Purchase

• Stage 1: Negotiation & Preliminary Agreement (PPJB)

1. Buyer and seller agree on price, payment terms, and timeline.

2. Signing of the Binding Sale and Purchase Agreement (PPJB) (Optional).

3. Down payment (DP) made (Optional).

• Stage 2: Land Legality Verification

1. Verification of land certificate (SHM, HGB, etc.) at the National Land Agency (BPN).

2. Ensure the land is free from disputes, mortgages, or legal claims.

3. Physical inspection (location, land boundaries, accessibility).

• Stage 3: Payment & Deed of Sale (AJB)

1. Full payment as per agreement.

2. Signing of the Deed of Sale (AJB) before a Land Deed Official (PPAT).

3. Land certificate name transfer process at BPN.

• Stage 4: Tax & Fee Payments

1. BPHTB (Land and Building Acquisition Fee) – 5% of NJOP (Tax Object Sale Value) or
transaction price (Paid to the Regional Treasury via appointed banks).

2. Final Income Tax (PPh Final) – 2.5% for the seller (Paid to the State Treasury via
appointed banks).

3. PPAT fees and BPN administrative costs.

B. Planning & Building Permits

• Stage 5: Principle Permit (If Required)

1. Example: Location permit for specific land use (ensuring compliance with the Spatial
Planning Regulation/RTRW).

• Stage 6: Submission of PBG (Building Construction Approval)

1. Submitted to the local Public Works Department (PUPR) or Regional Government.

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2. Required documents:
a. Applicant’s ID (KTP).
b. Land certificate.
c. Architectural and structural design plans.
d. Environmental Impact Analysis (AMDAL), if required.
e. Neighbor’s consent letter (for certain zones).

3. Once approved, PBG (Building Permit) is issued.

3. Construction Execution

• Stage 7: Commencement of Construction

1. Construction must follow the approved PBG design.

2. Periodic inspections by authorities (for large-scale projects).

• Stage 8: Building Feasibility Inspection

1. Before completion, an inspection is conducted by PUPR or a technical team, covering:


a. Structural integrity.
b. Electrical, plumbing, and fire safety systems.
c. Compliance with PBG.

4. Issuance of Certificate of Occupancy (SLF)

• Stage 9: SLF Application

1. Owner submits a request to PUPR/Regional Government.

2. Attachments:
a. Approved PBG.
b. Final inspection report.
c. Feasibility statement from the architect/contractor.

3. Verification team rechecks the building’s compliance.

• Stage 10: SLF Issuance

1. If all requirements are met, SLF (Certificate of Occupancy) is issued.

2. The building is officially cleared for use

Process Summary
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1. Land Purchase → PPJB → AJB → Land Certificate Transfer.

2. Building Permits → Submit PBG → Start Construction.

3. Construction → Feasibility Inspection → Apply for SLF.

4. SLF Issued → Building Legally Usable.

Key Notes

 Without PBG, construction is illegal (risk of demolition/fines).

 Without SLF, the building cannot be occupied (risk of administrative sanctions).

 Process may vary based on local regulations and property type (residential, apartment,
commercial)

II. Process Flow for Establishing a Crypto Company

A. Registration Requirements for Prospective Physical Crypto Asset Traders

1. Registration Obligations

1) Must register with Bappebti (Commodity Futures Trading Regulatory Agency) before
approval of the Futures Exchange and Clearing Institution.
2) Must use the official registration form (attached to the regulation).

2. Capital Requirements

1) Minimum paid-up capital of IDR 50 billion.


2) Minimum equity of 80% of the paid-up capital.

3. Required Documents

1) Copy of the company’s deed of establishment and management’s identification


documents.

2) Business plan and 24-month financial projections.

3) Proof of electronic system registration with the Ministry of Communication and


Informatics (Kemenkominfo).

4) Explanation of organizational structure, products, and business processes.

5) Additional data as per regulatory appendices.

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4. Approval Process

1) If documents are complete, Bappebti issues a registration certificate within 3 working


days.

2) Validity period: Until the Futures Exchange and Clearing Institution is approved.

B. Provisions During the Registration Period

1. Obligations for Prospective Traders

1) Report any changes in systems, management, or business processes.

2) Provide read-only system access to Bappebti for monitoring.

3) Conduct public education programs on crypto assets.

4) Submit periodic reports as required by regulations.

2. Activity Restrictions

1) May only serve individual customers (not business entities).

2) Prohibited from selling self-created or affiliate-issued crypto assets.

3. Mandatory Reporting

1) Full identity details of all registered customers.

2) List of managed wallets under the company's control.

C. Approval as a Physical Crypto Asset Trader

1. Application Process

1) Submit the application no later than 1 month after the Futures Exchange is approved.

2) Approval deadline: 1 year from the application submission date.

2. Penalties for Delay

1) Failure to meet the deadline results in cancellation of the registration certificate.

D. Required Application Documents

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1. General Documents (Applicable to All Parties)

1) Application letter, completed forms, deed of incorporation, financial reports.

2) Human Resource Certification: At least 1 employee certified in CISSP/CISA.

3) System Certification: ISO 27001 (mandatory), independent audit report.

III. Process for Establishing a Notary Office

A. Requirements to Become a Notary *(Article 3 of Law No. 2/2014)*

1. Nationality & Age:

1) Indonesian citizen

2) Minimum 27 years old

2. Health & Moral Integrity:

1) Physically and mentally healthy (medical & psychiatric certificates required)

2) Devout to the One Supreme God (Tuhan YME)

3. Education & Experience:

1) Bachelor of Law degree + Master's in Notarial Studies (S2)

2) 24 consecutive months of internship/employment at a Notary Office after


completing the Master's program

4. Prohibitions:

1) Cannot hold concurrent positions (civil servant, government official, advocate)

2) No prior prison sentence of ≥5 years

B. Position & Authority of a Notary *(Articles 18-19 of Law No. 2/2014)*

1. Jurisdiction:

1) Based in one regency/city, with authority to operate across the entire province

2. Notary Office:

1) Permitted to operate only one office within the designated jurisdiction

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2) Prohibited from performing duties outside the assigned area

3. Sanctions for Violations:

1) Written warning

2) Temporary suspension

3) Honorable/dishonorable dismissal

Additional Provisions:

 Must securely store notarial protocols (state documents)

 Office must comply with professional standards (Code of Ethics by the Indonesian
Notary Association/INI)

Common questions

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Property developers who fail to meet regulatory requirements, such as obtaining the necessary PBG or SLF, could face legal actions such as fines, demolition orders, or restrictions on building usage. Similarly, crypto companies that do not comply with registration requirements or deadlines risk having their registration certificates canceled, affecting their business operations. These consequences underscore the importance of adhering to regulations to prevent financial losses and maintain operational viability .

The physical inspection conducted at the National Land Agency (BPN) is crucial in confirming the land's legality by verifying the physical attributes like location and boundaries, ensuring accessibility, and examining any discrepancies with the legal documents. This step is vital to identify any potential disputes, unauthorized encroachments, or existing legal claims before proceeding with development, thereby preventing costly litigation and ensuring a clear transfer of ownership .

A notary must adhere to legal and ethical guidelines that include operating only within their designated jurisdiction and maintaining a single office. Ethical standards mandate secure storage of notarial protocols and compliance with professional standards set by the Indonesian Notary Association. Non-compliance can result in written warnings, temporary suspensions, or dismissal. The guidelines are designed to preserve the notary's integrity and ensure public trust in the notarial process .

Requiring an internship or employment at a Notary Office for a minimum of 24 consecutive months ensures that new notaries gain practical experience in handling real-world legal scenarios, understanding procedural intricacies, and enhancing their skills in a controlled environment. This hands-on training significantly contributes to their readiness and competence, ensuring that they are well-prepared to uphold legal and ethical standards within their profession upon starting their practice .

Prospective crypto asset traders must outline their organizational structure, products, and business processes during registration. This requirement ensures transparency and allows regulatory bodies to assess whether the trader's operations align with legal standards. Submission of the business plan, financial projections, and proof of system registration further supports compliance by demonstrating the trader's financial stability and technical preparedness, fostering a secure trading environment and protecting consumer interests .

The registration process for becoming a physical crypto asset trader starts with mandatory registration with Bappebti before the approval of the Futures Exchange and Clearing Institution. It requires a minimum paid-up capital of IDR 50 billion, with 80% equity of the capital. Prospective traders must submit required documents, including the company's deed of establishment, business plan, and proof of electronic system registration. During the registration period, traders must report any changes in their systems or management, provide read-only system access for monitoring, and engage in public education on crypto assets. Activity restrictions are imposed, such as serving only individual customers and prohibiting the sale of self-created crypto assets. Approval is contingent upon a timely application submission after Futures Exchange approval, with penalties for missing deadlines .

The capital requirement of a minimum IDR 50 billion and the need for extensive documentation, such as a business plan, financial projections, and system certifications, pose significant entry barriers for small entrepreneurs in the crypto market. These stringent requirements ensure only financially stable and well-prepared entities participate, which helps mitigate risks in the volatile crypto market. However, they may also limit innovation and diversity by restricting access to those with substantial resources, potentially stifling new entrants who might offer innovative solutions .

Failing to obtain a Building Construction Approval (PBG) before starting construction is considered illegal and can result in the risk of demolition or fines. Similarly, not having a Certificate of Occupancy (SLF) upon construction completion means the building cannot be legally occupied, exposing the developer to administrative sanctions. These requirements ensure that construction complies with approved designs and safety standards, safeguarding against future legal or safety issues .

During the final inspection for obtaining a Certificate of Occupancy (SLF), developers face risks such as non-compliance with structural, electrical, plumbing, or fire safety requirements, and discrepancies with the approved design plans. Mitigating these risks involves rigorous adherence to construction standards, regular audits throughout the construction phase, effective communication among engineers, contractors, and developers, and timely rectification of any identified issues to ensure compliance and facilitate seamless approval .

The land purchase process leading to property development involves several key stages to ensure legal and regulatory compliance. Stage 1 involves negotiation and optional signing of a Preliminary Agreement (PPJB) between buyer and seller, along with an optional down payment. Stage 2 requires land legality verification, including verifying the land certificate at the National Land Agency (BPN) to ensure it is free from disputes, mortgages, or legal claims, and conducting a physical inspection. Stage 3 entails full payment and the signing of the Deed of Sale (AJB) before a Land Deed Official, followed by the land certificate name transfer at BPN. Finally, Stage 4 involves tax and fee payments including BPHTB, Final Income Tax, and additional fees, which ensure fiscal responsibilities are met .

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