Buying from a developer usually means paying before the house exists. You pay a booking fee, then a down payment, while all you can see is a brochure, a show house and a plot being levelled.

For months the developer holds your money while nothing is registered in your name. If the company runs into trouble, the land isn’t settled or the permits never come through, you are the one who carries the loss.

This guide is for buyers weighing an off-plan house or a new housing estate. It lists the documents you can ask for and how to check each one before the first payment leaves your account.

Company documents to ask for

Start with the legal entity. The name on the brochure is often a brand, not the company that will sign the agreement with you.

Ask for copies of:

  • The deed of establishment and the latest amendment, which show the company’s name, address, and current directors and shareholders.
  • The legal entity approval, recorded in the AHU system (Administrasi Hukum Umum, the government’s company register).
  • The NIB (Nomor Induk Berusaha, the business identification number), issued through the OSS (Online Single Submission) system, with a business field that fits: real estate or housing development.

Match the company name on these papers against the brochure, the receipts and the draft agreement. If they differ, ask how the two are related and get the answer in writing.

Check who is authorised to sign. That is normally a director named in the deed. If someone else signs, ask for a power of attorney from the directors.

The project land

Land is where things most often go wrong. Make sure the developer legally controls the project land, rather than holding a promise from the previous owner.

Check that:

  • The master certificate is in the company’s name. A company cannot hold Hak Milik (freehold title, reserved for Indonesian citizens), so the master title is usually a Hak Guna Bangunan (HGB, a right to build for a fixed term).
  • It is no longer in the old landowner’s name. If it is, ask what the developer’s claim rests on. A binding agreement or joint venture with a landowner can fall apart, leaving your house on someone else’s land.
  • It isn’t disputed or blocked. Have a PPAT (the official who draws up land deeds) run a certificate check at the Kantor Pertanahan (land office) before you sign anything.
  • You know whether it is pledged. Master certificates are sometimes pledged to a bank to fund construction. Ask how your unit’s certificate will be released from that security, and get the answer written into the agreement.

You can see the parcel’s location and shape on BHUMI, the online parcel map run by the Ministry of Agrarian Affairs and Spatial Planning (ATR/BPN). Compare it with the site plan in the brochure.

Much of South Kalimantan’s lowland is swamp or peat. Ask how the project land was prepared, how high the fill sits compared with the main road, and where the estate’s drains empty.

Project permits: KKPR, site plan and PBG

A valid title doesn’t mean the land may be used for housing. Project permits show that the plan fits the spatial plan and has been reviewed by the local government.

  • KKPR (Kesesuaian Kegiatan Pemanfaatan Ruang, spatial use conformity), which replaced the old location permit under Government Regulation No. 21 of 2021. It confirms the site suits housing.
  • A site plan approved by the local government, showing the plots, roads, drains and shared facilities. Find your plot number on it, and check that the park or facilities in the brochure appear on the approved plan too.
  • A PBG (Persetujuan Bangunan Gedung, the building approval) for the houses. PBG replaced the old IMB permit. Once a building is finished, it should also get an SLF (Sertifikat Laik Fungsi, the certificate that a building is fit to use).

If the developer can only say a permit is “in process”, write that down. Ask which stage is still open and when it is expected.

Five conditions before a developer may sign a PPJB

A PPJB (Perjanjian Pengikatan Jual Beli, a binding sale agreement) ties you and the developer together before the AJB (Akta Jual Beli, the final deed of sale) is signed before a PPAT. The difference is explained in our guide to AJB and PPJB.

Law No. 1 of 2011 on Housing and Residential Areas, Article 42, as amended by the Job Creation Law, together with Government Regulation No. 12 of 2021, says a developer may sign a PPJB only once there is certainty on five things:

  1. The land ownership status.
  2. What is being sold.
  3. The PBG.
  4. Roads, facilities and public utilities.
  5. At least 20 percent of the project built.

That gives you a ready-made checklist. Ask for evidence of each, then visit the site and see how much has actually been built.

If the conditions aren’t met yet, you are only at the reservation stage. Get written terms on what happens to your money if the project is cancelled or delayed. Other trade-offs of buying before a house is finished are covered in off-plan or ready-built.

Subsidised homes: check SiKumbang

If you are buying a subsidised house under FLPP (the government’s subsidised mortgage scheme), add one step. Make sure the project and the developer are listed on SiKumbang, the government’s register of subsidised housing projects and developers.

If they aren’t listed, don’t pay anything yet. Ask the lending bank whether houses in that project can be financed under the subsidy scheme.

Track record on the ground

Documents show what should happen. Earlier projects show what actually happened.

Visit estates the same developer has built and talk to the residents, not the sales team. Ask:

  • Were the houses handed over on schedule?
  • Have the certificates been split and transferred into the owners’ names?
  • Were the roads, drains and street lights built as promised?
  • How were complaints handled after handover?
  • Does the estate flood in heavy rain?

Search the company name in the Supreme Court’s public directory of decisions too, to see whether buyers have ever taken it to court.

Membership of a developers’ association is one signal. It isn’t a guarantee. The association doesn’t check every member project’s certificates and permits on your behalf.

Paying safely

Many housing problems start with how the money was paid, not with the documents.

  • Pay only into an account in the company’s name, the same name as on the PPJB, never a salesperson’s or owner’s personal account.
  • Get an official receipt for every payment, with the company name, date, amount and what it was for.
  • Keep everything, including the brochure, WhatsApp messages and written promises.
  • Don’t let a promotion rush you. A discount that ends today is no reason to skip the checks.

Other common scams are covered in how to avoid property fraud. If the project offers in-house instalments without a bank, read how to check sharia plots and no-bank housing as well.

Next steps

Before paying a booking fee, put copies of the company documents, the master certificate, the KKPR, the site plan and the PBG in one folder. Take it to a PPAT or notary you choose yourself, not one the developer appoints, and go through it alongside the draft PPJB.

If a document can’t be produced, note it and ask in writing. A vague answer is a reason to wait.

If you are weighing a new house anywhere in Kalimantan and have questions, you can reach the Vorneo team on WhatsApp.