Glossary

Hak Milik
Freehold, the strongest land right. Only for Indonesian citizens and some state-linked domestic entities.

Sources: dfdl.com

SHM
Sertifikat Hak Milik, the certificate for a freehold (Hak Milik) title. Foreigners cannot hold it.

Sources: dfdl.com

HGB
Hak Guna Bangunan, the right to build on and use land. A PT PMA can hold it for 30 years, extendable by 20 and renewable by 30.

Sources: dfdl.com

Hak Pakai
Right of use. A foreigner with residence status can hold a house on it for 30 years, extendable by 20 and renewable by 30.

Sources: raywhite.co.id, dfdl.com

Hak Sewa
A lease. It is a contract, not a land title, typically for 25 to 30 years.

Sources: dfdl.com

PT PMA
A foreign-owned Indonesian company. It can hold HGB but not freehold.

Sources: dfdl.com

PPAT
The official land deed maker who prepares and witnesses land transfer deeds.

Sources: rumah123.com, sumbaestate.com

Notaris
A notary. Often the same person also acts as a PPAT.

Sources: hukumonline.com

BPN
Badan Pertanahan Nasional, the national land agency. Its local offices keep land records and certificates.

Sources: rumah123.com, sumbaestate.com

BPHTB
The tax paid by a buyer when acquiring a land or building right. Check the current rate with a PPAT.
KITAS
A temporary stay permit for foreigners. Land offices often ask for it, or a KITAP, for Hak Pakai purchases.

Sources: thejakartapost.com, raywhite.co.id

KITAP
A permanent stay permit for foreigners.

Sources: thejakartapost.com

RTRW
The regional spatial plan that sets zoning, such as tourism or farmland zones.

Sources: rumah123.com, sumbaestate.com

Yellow zone
A zoning label used in Sumba listings for land in a tourism zone. Confirm it against the RTRW.

Sources: rumah123.com, sumbaestate.com

Green zone
A zoning label seen in Sumba listings. What it allows must be confirmed against the RTRW.

Sources: sumbaestate.com

Adat
Customary law and tradition. Customary land claims are a commonly reported issue on Sumba (not verified in our research).

Sources: rumah123.com, sumbaestate.com

IMB
The old building permit. It has been replaced by the PBG.
PBG
Persetujuan Bangunan Gedung, the building approval needed before you build.
NIB
Nomor Induk Berusaha, the business identification number a company receives when it registers.
KBLI
The Indonesian business classification code. PT PMA investment rules are set per 5-digit KBLI per location.

Sources: aoshearman.com

Girik
An old, uncertified record of land ownership. It is not a registered title.
Are
A unit of area of 100 m2. Some Sumba listings price land per are.

Sources: bali-home-immo.com

Kabupaten
A regency. Sumba has four: Sumba Barat Daya (Southwest), Sumba Barat (West), Sumba Tengah (Central) and Sumba Timur (East).

Sources: en.wikipedia.org

Nominee
Putting land in an Indonesian's name on behalf of a foreigner. It is legally ineffective and cannot be enforced.

Sources: dfdl.com

PLN
The state electricity company. In NTT it reports a 96.5% household electrification ratio.

Sources: listrikindonesia.com