PPJB and AJB: Two Documents, Two Different Moments

Indonesian property buyers encounter two major legal documents in a transaction: the PPJB (Perjanjian Pengikatan Jual Beli — Sale and Purchase Binding Agreement) and the AJB (Akta Jual Beli — Sale and Purchase Deed). Many buyers don't understand that these are fundamentally different instruments with different legal effects, prepared at different stages of the transaction. Getting the right checks done before each document is critical.

What Is the PPJB?

The PPJB is a binding commitment to buy and sell, typically signed when:

  • The property is not yet fully built (indent/pre-completion)
  • The seller's certificate is still in process
  • Financing arrangements are not yet complete
  • Any condition exists that prevents immediate full transfer of title

The PPJB can be made privately (di bawah tangan) or notarially (by a notaris/PPAT). A notarial PPJB provides stronger legal protection. Under UU No. 1/2011 on Housing, developers of residential projects are required to have PPJB signed notarially for pre-completion sales.

What Is the AJB?

The AJB is the deed of transfer of property rights. It must be executed before a PPAT (Pejabat Pembuat Akta Tanah — Land Deed Official, a licensed notary specialized in land rights). The AJB triggers the official transfer of the right from seller to buyer and is the document submitted to the National Land Agency (BPN) to issue a new certificate in the buyer's name.

Unlike the PPJB which creates obligations, the AJB transfers ownership. This distinction matters significantly: if a developer goes bankrupt after PPJB but before AJB, buyers with notarial PPJBs have documented claims but do not yet own the property.

10 Things to Verify Before Signing PPJB

  1. Developer's legal identity: Verify the developer company's legal existence (akta pendirian, NPWP, SIUP or NIB). Match the entity on the PPJB with the certificate holder.
  2. Land certificate status: Request a photocopy of the current sertifikat (HGB, SHM, or SHSRS). Verify it's not encumbered (tidak dalam sengketa, tidak sedang dijaminkan) at the BPN office.
  3. Site plan and unit specification: The PPJB must reference the specific block and unit number, floor area, building footprint, and material specifications. Vague descriptions mean vague obligations.
  4. Completion timeline and penalty clause: Legitimate PPJBs include a completion deadline with a developer penalty for delays (typically 1‰ per day up to a cap, per UUPK/consumer protection rules).
  5. Handover condition: What exactly is delivered at handover — fully finished, semi-finished (shell and core), or bare structure? This must be specific.
  6. PPN and tax treatment: Confirm whether the price is inclusive or exclusive of PPN. With the 2026 DTP incentive in effect, the PPN DTP 100% should be explicitly referenced if applicable.
  7. Payment schedule: The PPJB should clearly state every payment milestone, amount, and deadline. Payments without milestones have no enforcement mechanism if construction stalls.
  8. Cancellation terms: What happens if you need to cancel? What does the developer keep? Legitimate PPJBs typically allow 10–30% penalty deduction from the amount paid. Cancellation terms that allow the developer to retain 100% of payments are exploitative and potentially violate UUPK.
  9. Transfer of risks clause: At what point does risk transfer — upon PPJB or upon handover? In well-written agreements, the physical risk (damage, destruction) remains with the developer until physical handover.
  10. PPJB notarialization: For developer pre-sales, ensure the PPJB is made notarially, not just stamped. A private PPJB is significantly harder to enforce if the developer defaults.

10 Things to Verify Before Signing AJB

  1. Certificate is clean: Before AJB, run a final BPN certificate check (cek sertifikat di kantor BPN). Confirm there are no registered mortgages, blocks, or disputes. This can be done on-site at the BPN or through the PPAT.
  2. All taxes are paid: PPh Final (2.5%) by seller and BPHTB (5%) by buyer must be paid before AJB. The PPAT will require payment receipts (SSP/SSPD). Ensure amounts are correctly calculated.
  3. PBB (annual land and building tax) is current: The seller must present the latest year's PBB payment receipt (STTS). Unpaid PBB becomes the new owner's liability after AJB.
  4. Identity documents match: Both parties' KTP/KITAS must match the documents on file. Name inconsistencies between KTP and SHM require correction before AJB.
  5. Seller has full authority to sell: If the property is in a deceased's estate, all heirs must be present or represented. If encumbered, the bank must release the HT (Hak Tanggungan/mortgage) first.
  6. Outstanding service charges cleared: For cluster/perumahan properties, confirm no outstanding IPL (Iuran Pengelolaan Lingkungan) dues. Some developer and management associations can block certificate transfer for unpaid fees.
  7. Building condition matches contract: If this follows a PPJB, verify the physical unit matches the agreed specification before signing the AJB.
  8. PPAT identity and license: Verify the PPAT is registered with the National Land Agency (BPN). A PPAT's registration number can be verified online through the Kementerian ATR/BPN website.
  9. Understand what you're signing: The AJB is a deed prepared in Indonesian. If you don't understand Indonesian, bring a translator you trust. The PPAT will read it aloud — listen, ask questions, and don't rush.
  10. Balik nama timeline: After AJB, the PPAT submits the title transfer (balik nama) application to BPN. This typically takes 30–90 days. Get a receipt (tanda terima) from the PPAT and follow up if the new certificate hasn't been issued within 3 months.

Red Flags to Watch

  • Developer pressure to sign immediately without review time
  • PPJB prepared "di bawah tangan" (private, unnotarized) for pre-completion property
  • No unit-specific site plan attached to the PPJB
  • Cancelation penalty exceeding 30% of paid amount
  • Seller cannot produce BPN-verified certificate copy