What's the purchase process to buy a property in Surabaya?

Authored by the expert who managed and guided the team behind the Indonesia Property Pack

Everything you need to know before buying real estate is included in our Indonesia Property Pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Surabaya. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Indonesian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Surabaya, Jakarta, and Bandung. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How do I check if foreigners are legally allowed to own property in Surabaya?

Foreigners cannot own land outright (Hak Milik) anywhere in Indonesia, including Surabaya, but can legally acquire property through specific ownership structures.

You can purchase apartments or condominiums under Hak Pakai (Right to Use) title, which grants usage rights for 25-30 years with renewal options. For landed houses, you'll need to use a PT PMA (foreign investment company) structure to legally hold the property.

As of September 2025, Indonesian law restricts freehold land ownership to Indonesian citizens only. However, the government has established clear legal frameworks for foreign property acquisition through Hak Pakai and corporate ownership structures.

To verify your eligibility, you must hold either a KITAS (Temporary Stay Permit) or KITAP (Permanent Stay Permit). Tourist visas do not qualify for property purchases under any ownership structure in Surabaya.

It's something we develop in our Indonesia property pack.

What types of property can I actually buy there—landed houses, apartments, or only certain categories?

Foreign buyers in Surabaya can purchase apartments and condominiums with strata titles under Hak Pakai ownership, which is the most straightforward option for individual buyers.

Landed houses require a PT PMA company structure since they typically sit on Hak Milik (freehold) land that foreigners cannot directly own. Through a PT PMA, you can acquire both the building and land use rights.

Apartments in established developments with proper strata titles are generally the safest option for foreign buyers. These properties come with clear ownership certificates and are easier to resell or transfer.

Commercial properties, including office spaces and retail units, can also be purchased through PT PMA structures. However, residential properties remain the most popular choice among foreign buyers in Surabaya.

What documents do I need to prepare before starting the purchase process?

The essential documents for property purchase in Surabaya include a valid passport with at least 6 months remaining validity.

Document Type	Requirement	Purpose
Passport	Valid with 6+ months remaining	Identity verification and legal status
KITAS/KITAP	Current residence permit	Legal right to purchase property
NPWP	Indonesian tax number	Tax compliance and registration
Bank Statements	3-6 months recent statements	Proof of financial capability
Income Proof	Employment letter or business documents	Source of funds verification
Passport Photos	Recent 4x6 cm photos	Official documentation requirements
Marriage Certificate	If joint ownership with spouse	Legal relationship verification

How do I find and verify a trustworthy notary or property agent in Surabaya?

Start by requesting referrals from your embassy, international law firms, or previous foreign property buyers in Surabaya who have completed successful transactions.

Verify that the notary is a licensed PPAT (Land Deed Official) through the Indonesian Notary Association or local bar association. PPAT notaries are specifically authorized to handle property transactions and land transfers.

Look for notaries with proven experience in foreign property transactions, particularly those familiar with Hak Pakai and PT PMA structures. Established notary offices in Surabaya's business districts typically have this expertise.

Never rely solely on property agent recommendations for notary selection. Conduct independent verification through lawyer directories or consult with international law firms that operate in Surabaya.

Check online reviews and ask for references from recent foreign clients. A reputable notary should be transparent about providing contact information for previous international clients.

What's the step-by-step process of signing a Sale and Purchase Agreement (AJB) with a notary?

The AJB signing process begins after completing comprehensive due diligence and verifying all property documents with the National Land Office (BPN).

1. **Due Diligence Completion**: Verify the seller's legal right to the property, check for outstanding debts, liens, or legal disputes through BPN records2. **AJB Draft Preparation**: The PPAT notary prepares the Sale and Purchase Agreement containing all transaction details, ownership transfer terms, and legal obligations3. **Document Verification**: All parties present required documents including certificates, permits, tax receipts, and identity verification4. **Tax and Fee Settlement**: Pay BPHTB acquisition tax (~5% of transaction value), notary fees (1-2%), and administrative charges before signing5. **Formal AJB Signing**: Both buyer and seller sign the agreement before the PPAT notary, with witnesses present as required by law6. **Payment Transfer**: Execute secure payment through the notary's escrow account to ensure funds protection7. **BPN Submission**: The notary submits all documents to BPN for official ownership transfer and certificate update

The entire AJB process typically takes 1-2 weeks once all documents are prepared and verified.

How is the due diligence on the land certificate or property ownership carried out to ensure there are no disputes?

Due diligence begins with verifying the seller's name exactly matches the land certificate (SHM, HGB, or strata title) and confirming their legal right to sell the property.

Conduct a comprehensive BPN search to check for liens, mortgages, or legal encumbrances on the property. This includes reviewing the property's transaction history and ensuring no pending legal disputes exist.

Verify all related permits including building permits (IMB), environmental clearances, and zoning compliance. Check that property taxes are current and all municipal fees have been paid.

Screen for double certificates or overlapping claims, which can occur when multiple parties claim ownership to the same land. This requires cross-referencing BPN records with local court filings.

For apartment purchases, verify the developer's legal status, completion certificates, and that the strata management is properly established. Review the building's master deed and management agreements.

It's something we develop in our Indonesia property pack.

What are the taxes and fees I'll have to pay as a buyer, and when are they due?

The primary buyer tax is BPHTB (Land and Building Acquisition Tax), typically around 5% of the transaction value or official property assessment, whichever is higher.

Notary fees range from 1-2% of the transaction value, covering AJB preparation, document verification, and BPN submission services. These fees are standardized but can vary based on transaction complexity.

Additional costs include administrative fees for BPN registration, certificate processing, and various municipal charges that total approximately 0.5-1% of the property value.

All taxes and fees must be paid before or during the AJB signing ceremony. The notary typically collects these payments and processes them on behalf of all parties.

For PT PMA purchases, additional corporate taxes and establishment fees apply, including company formation costs of approximately $2,000-5,000 depending on the structure complexity.

How do I make the payment safely—bank transfer, escrow, or directly through the notary?

Use bank transfer to the notary's official escrow account, which provides the highest level of security for large property transactions in Surabaya.

Never make full payment directly to the seller before completing the AJB signing and BPN registration. Licensed PPAT notaries are required to maintain client escrow accounts for transaction security.

The payment process typically involves a 10-20% deposit upon signing a preliminary agreement (PPJB), with the balance paid through the notary's escrow during AJB execution.

Request written confirmation of escrow account details directly from the notary and verify account ownership through the bank. Legitimate notaries provide official receipts and transaction documentation.

For high-value transactions, consider using international wire transfers with full documentation trails. This provides additional protection and clear financial records for future reference.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Indonesia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What is the role of the Land Office (BPN) in registering the transaction and transferring ownership?

The National Land Office (BPN) serves as the official registry for all land and property ownership transfers in Surabaya, making their registration essential for legal ownership security.

BPN updates the land certificate or strata title to reflect the new owner's name and ownership structure, whether Hak Pakai or through PT PMA company ownership.

Without BPN registration, your property ownership is not legally recognized or protected under Indonesian law, regardless of having signed the AJB agreement.

The BPN process involves document verification, ownership validation, and issuance of updated certificates bearing the new owner's information and legal ownership status.

BPN also maintains the official land registry database, which is crucial for future transactions, inheritance transfers, or legal disputes involving the property.

How long does the full process from agreement to official registration usually take in Surabaya?

The complete property purchase process in Surabaya typically takes 1-3 months from initial agreement to final BPN registration and certificate issuance.

Document preparation and initial due diligence usually require 2-4 weeks, depending on the complexity of verifying property status and obtaining required permits.

AJB preparation and signing can be completed within 1-2 weeks once all documents are verified and taxes are calculated and paid.

BPN registration and certificate processing typically takes 2-6 weeks, though this can extend during peak periods or if additional documentation is required.

Factors that can extend the timeline include incomplete documentation, property disputes requiring resolution, complex ownership structures, or delays in tax payment processing.

What are the most common mistakes buyers make when dealing with land certificates, Hak Pakai vs Hak Milik, or apartment strata titles?

The most frequent error is misunderstanding the difference between Hak Pakai and Hak Milik, particularly regarding inheritance rights and resale restrictions for foreign owners.

Common Mistake	Consequence	Prevention Method
Assuming Hak Pakai = Hak Milik	Limited inheritance/resale rights	Understand ownership structure differences
Not verifying developer reliability	Incomplete projects, legal issues	Check developer track record and finances
Overlooking property debts	Inheriting seller's obligations	Conduct comprehensive debt screening
Ignoring double certificates	Ownership disputes, legal battles	Verify through BPN and court records
Skipping tax verification	Penalties and legal complications	Confirm all taxes are current and paid
Not checking strata management	Poor building maintenance, disputes	Review management documents and finances
Incomplete permit verification	Legal issues, demolition risks	Verify all building and zoning permits

How do I avoid scams, hidden debts, or sellers who don't have full rights to the property?

Always demand to examine original property certificates and verify their authenticity through direct BPN confirmation rather than relying on photocopies.

Conduct thorough background checks on the seller's legal right to the property, including verification that they are the registered owner and have authority to sell.

Check for outstanding mortgages, liens, or other financial encumbrances through comprehensive BPN searches and bank confirmations if applicable.

Work exclusively with licensed PPAT notaries and conduct all payments through secure escrow accounts rather than direct seller payments.

Engage independent legal professionals for contract review and due diligence rather than relying solely on the seller's recommended advisors.

It's something we develop in our Indonesia property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Wise - Buying Property in Indonesia Guide
2. DSG Pay - Property Purchase Guide for Foreigners
3. Cekindo - House Buying Guide in Indonesia
4. Own Property Abroad - Surabaya Property Guide
5. Rumah123 - Property Ownership Laws for Expatriates
6. Emerhub - Property Laws and Regulations
7. Global Property Guide - Indonesia Buying Guide
8. Seven Stones Indonesia - Legal Process Guide