PPJB vs AJB: the agreement that binds you and the deed that moves the right

Two documents describe the same deal and do different legal work. The tax clocks start at different ones — and the first starts earlier than most buyers expect.

Written from the Indonesian originals · Editor-reviewed · Law as read on 2026-09-27

By the balipropertyguide.com editorial team · Published 2026-09-27 · Last reviewed 2026-09-27 · 9 min read

6 primary sources cited on this page. How we check what is on this site

PPJB, AJB, BPHTB, balik nama: twelve questions about the two documents

Almost every Indonesian property purchase that is not paid in one sitting runs through two documents: an agreement to sell and buy, then a sale deed. They are often confused because they describe the same deal. They do different legal work, and the tax clocks start at different ones.

What people search	What it is	What the rule says
“PPJB”, “perjanjian pengikatan jual beli”	An agreement to sell and buy later	Binds the parties; does not move the right.PP 24/1997 art. 37(1)
“AJB”, “akta jual beli”	The PPAT’s sale deed	The document a transfer is only registrable on a PPAT deed.PP 24/1997 art. 37(1)
“Kapan BPHTB dibayar?”	Buyer’s acquisition duty	Falls due on the date the PPJB is signed.Law 1/2022 (HKPD) art. 49(a)
“Seller’s tax on a PPJB?”	Final income tax	Owed on transfers and also on income from a PPJB and its amendments.PP 34/2016 art. 1(1)(b)
“Before signing the AJB”	Seller’s final tax	Paid before the deed is signed; the PPAT signs only on proof of payment checked by the tax office.PP 34/2016 art. 3(5)
“Buyer’s proof”	BPHTB receipt (Tabanan)	The PPAT signs only after the buyer hands over proof of BPHTB payment.Tabanan Perda 13/2023 art. 16(1)
“After the AJB”	Lodging at the land office	The PPAT delivers the deed within 7 working days of signing.PP 24/1997 art. 40(1)
“Can the PPJB be registered?”	Recording on the certificate	A PPJB over registered land can be recorded on the public register and/or the land certificate.PP 18/2021 art. 90
“PPJB with a developer”, “off-plan”	Developer PPJB	An agreement between a developer and a buyer to sell a house or unit before or during construction.PP 14/2016 art. 1(11), as amended by PP 12/2021
“When can a developer sign?”	Pre-conditions	Only after certainty of the land status, of what is agreed, of the PBG, of infrastructure, and at least 20% built.PP 14/2016 art. 22(5), as amended by PP 12/2021
“Can they sell before building?”	Marketing pre-conditions	Marketing needs zoning certainty, land-right certainty, certainty of the ownership status, a PBG, and a construction guarantee.PP 14/2016 art. 22C(1), as amended by PP 12/2021
“Is a foreigner’s lease a PPJB?”	No	A lease is its own notarial contract; there is no AJB for hak sewa.UUPA (Law 5/1960) art. 44(1)

The last row matters most to foreign buyers: a lease is not bought with a PPJB and an AJB at all. It is a notarial contract of its own. The PPJB–AJB path is for registered rights — for a foreigner, hak pakai or strata title.

What each document does

The PPJB binds you

A PPJB records the price, the conditions and what happens if a condition fails. It is used because something is not ready yet: the balance is being paid in installments, a certificate is being split or converted, a building is not finished. It commits both sides. It does not move the right — a transfer is only registrable on a PPAT deed (PP 24/1997 art. 37(1)).

A PPJB over registered land can be recorded on the public register and/or the land certificate (PP 18/2021 art. 90). That puts the agreement where anyone checking the certificate will see it. Ask whether it is being done.

The AJB moves the right

The AJB is the PPAT’s deed of sale. It is the document the land office registers, and it is the point at which the right changes hands in law — subject to registration, which is the PPAT’s next job.

The clocks that start at each

Indonesian law sets no timetable for a purchase as a whole. It does set these, and most of them hang on the two documents.

When	What happens	Source
PPJB signed	Buyer’s BPHTB falls due	Law 1/2022 (HKPD) art. 49(a)
PPJB signed	Seller’s final tax reaches income from the PPJB	PP 34/2016 art. 1(1)(b)
Before the AJB is signed	Seller’s final tax paid and proven to the PPAT	PP 34/2016 art. 3(5)
Before the AJB is signed	Buyer’s BPHTB receipt shown (Tabanan’s by-law says so expressly)	Tabanan Perda 13/2023 art. 16(1)
AJB signed	The right can now be registered — and only on this deed	PP 24/1997 art. 37(1)
Within 7 working days	PPAT lodges the deed at the land office and tells the parties in writing	PP 24/1997 art. 40(1)

The first line surprises people. For a sale, BPHTB is owed from the date the PPJB is signed (Law 1/2022 (HKPD) art. 49(a)) — so, on our reading, a buyer who signs a PPJB and later walks away from the deal may already have incurred it. Ask the notary before signing. The seller is in a similar position: final income tax reaches income from a PPJB and its amendments (PP 34/2016 art. 1(1)(b)), and must be paid before the deed is signed of transfer (PP 34/2016 art. 3(1)).

The last line is a protection for the buyer. The PPAT must lodge the deed within 7 working days of signing and tell the parties in writing that it has (PP 24/1997 art. 40(1)). If that written notice has not arrived two weeks after signing, ask why.

Buying from a developer: the conditions before a PPJB

Off-plan villas and apartments are sold on developer PPJBs, and the housing regulation puts conditions on both the marketing and the agreement. PP 12/2021, amending PP 14/2016, defines the developer PPJB as an agreement between a developer and a buyer to sell a house or unit before or during construction (PP 14/2016 art. 1(11), as amended by PP 12/2021).

Before marketing at all, the developer must have zoning certainty, land-right certainty, certainty of the ownership status, a PBG, and a construction guarantee (PP 14/2016 art. 22C(1), as amended by PP 12/2021). Land certainty is shown by a certificate in the developer’s name or the name of the landowner it is working with; the permit is shown by the PBG.

Before signing a PPJB, it must have certainty of the land status, of what is agreed, of the PBG, of infrastructure, and at least 20% built (PP 14/2016 art. 22(5), as amended by PP 12/2021). A PPJB offered on a villa that is still a render, on land whose certificate nobody has shown you, is being offered before the regulation allows it.

The regulation is written for houses, terraced houses and strata units; whether a particular villa project falls within it is a question for the notary. The conditions are still the right questions to ask of any off-plan seller. What the PBG and SLF are.

Before you sign either

1. Which right does the AJB transfer, and can you hold it?

Hak milik cannot end up with a foreigner, directly or through a side agreement. Why that fails.

2. Who pays which tax, and by when?

BPHTB from the PPJB; the seller’s tax before the AJB. Both, side by side.

3. Will the PPJB be recorded on the certificate?

A yes-or-no question with a cost attached.

4. When will the written notice of lodging arrive?

Seven working days after the AJB is the statutory outside date for the lodging itself.

We are not a notary or PPAT and recommend none. We are paid a fixed fee per enquiry whether you buy or not; this page sets out the articles so you can check the sequence you are offered.

Questions on this page

What is the difference between PPJB and AJB?

A PPJB (perjanjian pengikatan jual beli) is an agreement to sell and buy later, usually used while conditions are outstanding — payment in installments, a certificate being split, a building still under construction. The AJB (akta jual beli) is the sale deed made before a PPAT, and PP 24/1997 article 37(1) makes a transfer registrable only on such a deed. The PPJB binds the parties; the AJB is what the land office registers.

When is BPHTB paid on a property purchase?

For a sale, Law 1/2022 article 49(a) says BPHTB falls due on the date the PPJB is signed — not the AJB. In practice the PPAT asks for proof of payment before signing the AJB; Tabanan's by-law (Perda 13/2023 art. 16(1)) states expressly that the PPAT may sign only after the buyer hands over that proof.

Does the seller pay tax on a PPJB?

Yes. PP 34/2016 article 1(1)(b) makes income from a PPJB and its amendments subject to final income tax, alongside income from the transfer itself. Article 3(1) requires the seller's tax to be paid before the deed is signed, and article 3(5) lets the official sign only on proof of payment checked by the tax office.

How long after the AJB is the land registered?

PP 24/1997 article 40(1) requires the PPAT to deliver the deed and its documents to the land office within 7 working days of signing, and article 40(2) to tell the parties in writing that it has. How long the land office then takes is set by service rules we have not read.

Can a developer sign a PPJB before the villa is built?

For houses and strata units, PP 14/2016 as amended by PP 12/2021 allows marketing during construction but lets a developer sign a PPJB only after certainty of the land status, of what is agreed, of the PBG, of infrastructure, and at least 20% of construction done (art. 22(5)). Before marketing at all, the developer must have zoning certainty, land-right certainty, the PBG and a construction guarantee (art. 22C(1)).

Is a PPJB safe for a foreign buyer?

A PPJB cannot give a foreigner a right the law does not let a foreigner hold. A PPJB for hak milik in a foreigner's favor — or one that leaves the benefit of hak milik with a foreigner indirectly — runs into UUPA article 26(2). What a foreigner can properly contract to acquire is hak pakai, strata title, or a lease.

Sources cited on this page

Every rule above was read in the Indonesian original on 20 September 2026, not from an English summary. How we check this.