Glossary of Indonesian Real Estate Terms

A

• AJB (Akta Jual Beli): The deed of sale and purchase, a legal document for transferring property ownership.
• Amortisasi: Amortization, the gradual repayment of a loan over time.
• Appraisal: The process of determining the value of a property.

B

• BPN (Badan Pertanahan Nasional): National Land Agency responsible for land registration.
• BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan): Land and Building Acquisition Fee, a tax on property transactions.
• Bukit: Hill, often used in property descriptions in hilly areas.

C

• Cicilan: Installment payment, often used in property financing.
• Covenant: Legal agreements or promises in a deed or other document.

D

• Developer: A company or individual that develops land for residential, commercial, or industrial use.
• DP (Down Payment): Initial payment made when purchasing a property.

E

• Easement: The right to use someone else’s land for a specific purpose.
• Eksekusi: Execution, often referring to the legal process of enforcing a court judgment.

F

• Fasilitas: Facilities, amenities provided within a property or development.
• Freehold: A type of ownership where the owner has full control of the property indefinitely.

G

• Girik: Traditional land ownership document in rural areas.
• Gross Floor Area: The total floor area within a building.

H

• Hak Guna Bangunan (HGB): Building Use Right, a type of land title for commercial purposes.
• Hak Milik (HM): Freehold title, the strongest form of land ownership in Indonesia.

I

• IMB (Izin Mendirikan Bangunan): Building Permit, required for constructing a building.
• Investor: An individual or entity that invests in real estate for profit.

J

• Jual Beli: Sale and purchase, the transaction of buying and selling property.
• Jaminan: Collateral, an asset pledged to secure a loan.

K

• KPR (Kredit Pemilikan Rumah): Mortgage, a loan taken to purchase property.
• Kios: A small shop or stall, often in a market or mall.

L

• Landbanking: The practice of buying land as an investment, holding it for future development or sale.
• Leasehold: A type of property tenure where the property is leased for a specified period.

M

• Market Value: The estimated amount a property would fetch in the open market.
• Mutasi: Mutation, the process of transferring land title from one owner to another.

N

• Notaris: Notary, a legal officer authorized to authenticate legal documents.
• NUP (Nomor Urut Pemesanan): Booking Number, used in property reservations.

O

• Over Kredit: The transfer of a mortgage from one borrower to another.

P

• PPJB (Perjanjian Pengikatan Jual Beli): Sales and Purchase Binding Agreement, an initial agreement before the AJB.
• Pengembang: Developer, a person or company that develops property.

R

• Ruko (Rumah Toko): Shop-house, a building combining residential and commercial spaces.
• ROI (Return on Investment): The gain or loss on an investment relative to the amount invested.

S

• SHGB (Sertifikat Hak Guna Bangunan): Certificate of Building Use Rights.
• SHM (Sertifikat Hak Milik): Certificate of Ownership, indicating freehold title.

T

• Tanah: Land, often used in real estate listings.
• Title Deed: A legal document proving property ownership.

U

• Unit: A single property or apartment within a larger building or complex.

W

• Wakaf: Endowment, a donation of land or property for religious or charitable purposes.

Z

• Zona: Zone, an area designated for specific types of development (residential, commercial, industrial).