What do all the Bali property terms mean?

Indonesian property documents are in Indonesian, and the terms are not intuitive. These are the ones that decide things.

Land titles

Hak Milik (SHM) Freehold. Perpetual. Indonesian citizens only. Never available to a foreigner.

Hak Guna Bangunan (SHGB) Right to build. Held by Indonesian legal entities including a PT PMA. Defined term, extendable.

Hak Pakai (SHP) Right of use. The only registered land right a foreigner can hold personally, requiring valid residency and meeting minimum value conditions.

Hak Sewa Lease. A contract, not a registered title, and not recorded at BPN. What most foreign buyers here actually hold.

Hak Guna Usaha (HGU) Right to cultivate, for agricultural enterprise.

Hak Milik atas Satuan Rumah Susun Strata title over an apartment unit. Available to foreigners above a minimum value.

Girik / Petok Not a certificate. Customary or tax evidence of possession on unregistered land. Trades at a discount for good reason.

Pemecahan sertifikat Splitting a certificate into smaller parcels. Requires minimum plot size and legal access for each resulting parcel.

The two words that decide a lease

Jaminan perpanjangan Guaranteed extension. The landowner is contractually bound to grant it.

Prioritas perpanjangan Priority to extend — a right of first refusal at a price determined later. Worth far less, and what most leases actually contain.

Both translate into English as "extension rights". This is the most consequential distinction in a Bali lease.

People and documents

Notaris Public notary who draws up deeds generally.

PPAT Pejabat Pembuat Akta Tanah. The official authorised specifically to make land deeds and lodge transfers, within a defined territory. A transfer is not effective without one.

BPN The national land agency, where certificates are verified.

AJB Akta Jual Beli, the deed of sale and purchase executed before a PPAT.

Surat kuasa Power of attorney. Cannot authorise what the law prohibits.

Penerjemah tersumpah Sworn translator. Required for documents carrying legal weight.

Banjar / desa adat The customary community organisation and village. Applies rules found in no statute, and the first forum for local disputes.

Building and zoning

PBG Persetujuan Bangunan Gedung. Building approval, required before construction. Replaced IMB.

SLF Sertifikat Laik Fungsi. Certifies the finished building is fit for use. Without it a building is not lawfully occupiable.

KDB Building coverage ratio. Maximum share of the plot the footprint may occupy.

KLB Floor area ratio. Total built floor area relative to plot size.

KDH Minimum green area that must stay unbuilt.

Sempadan pantai Coastal setback from the high water line, within which building is restricted.

Sempadan sungai River setback. Catches more Canggu and Pererenan parcels than buyers expect.

Zona hijau Green zone. Agricultural. Generally cannot host tourism accommodation.

Company and licensing

PT PMA Foreign-owned limited liability company.

NIB Nomor Induk Berusaha. Business identification number issued through OSS.

OSS Online Single Submission. The risk-based licensing system.

KBLI The classification code for a business activity. Determines foreign ownership eligibility, capital thresholds and risk grading. Current version is KBLI 2025 under BPS 7/2025.

LKPM Quarterly investment activity report required of PMA companies. Genuinely enforced.

RUPS Shareholder meeting, and the minutes recording it.

Direksi / Komisaris Management board and supervisory board of a company.

RPTKA The foreign worker utilisation plan a company must have approved before a foreign employee can be authorised.

KPPA / KP3A Representative office forms. May not generate revenue in Indonesia.

Immigration

KITAS Limited stay permit. Several types, each authorising different activities.

KITAP Permanent stay permit, generally after continuous KITAS holding for a qualifying period.

EPO Exit Permit Only. Closes a stay permit when leaving permanently.

SKTT Certificate of residence for a KITAS holder, issued by the civil registry.

Tax and money

BPHTB Buyer's duty on acquisition of a titled right, around 5 percent, on the higher of price and NJOP.

NJOP The government's assessed value of a parcel. The floor for BPHTB and a reference point in valuation.

PPh final Final tax. 2.5 percent of transfer value on a property disposal; 10 or 20 percent on rental income depending on residency.

PBB Annual land and building tax. Arrears attach to the land.

NPWP Taxpayer identification number.

NITKU Business unit identifier, issued per registered place of business.

Coretax The tax administration platform. Matches data strictly and rejects rather than queries.

THR Mandatory religious holiday allowance for employees: one month's salary annually.

BPJS National health and employment social security. Employer contributions are the larger share of the split.

UMK Regional minimum wage, set per regency and revised annually.

Measurement

Are 100 square metres. Land here is priced per are, not per square metre.

Hektar One hectare, 100 are, 10,000 square metres.