The price is agreed, the certificate has been checked, and a date is set for the deed of sale, the AJB (Akta Jual Beli). Then the PPAT (Pejabat Pembuat Akta Tanah, the official who draws up land deeds) tells you the house’s land and building tax, PBB (Pajak Bumi dan Bangunan), hasn’t been paid for several years, and there are penalties on top. Everything stops, and the seller starts asking whether you’d chip in.

It’s a small problem if you find it early, and an irritating one if it surfaces just before signing. This guide explains how to read the PBB paperwork, check for arrears, and agree who pays.

PBB in brief

PBB on urban and rural homes and land is now run by regency and city governments, usually through the regional revenue agency, Bapenda (Badan Pendapatan Daerah). So PBB on a house in Banjarmasin is handled by Banjarmasin’s Bapenda, and PBB on land in Banjarbaru by Banjarbaru’s.

Each year Bapenda issues a tax notice, the SPPT (Surat Pemberitahuan Pajak Terutang). It shows:

  • The tax object number, NOP (Nomor Objek Pajak), unique to that plot and building.
  • The taxpayer’s name and address.
  • Where the property is.
  • Land and building area as Bapenda has it on record.
  • The assessed value, NJOP (Nilai Jual Objek Pajak).
  • The tax due and the due date.

Tax not paid by the due date attracts an administrative penalty under the local regulation, and the total grows the longer it’s left.

Why arrears matter to a buyer

PBB is attached to the property, the land and building, not to the person. If arrears aren’t cleared before the sale, they stay recorded against the same NOP, and you as the new owner end up dealing with them.

Arrears can also stall the deal. In many regions, the buyer’s acquisition tax, BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan), has to be validated by Bapenda, and that validation checks the property’s PBB status. The PPAT will usually ask for the SPPT and PBB receipts before drawing up the AJB. The other taxes in a sale are covered in our guide to property transaction taxes.

The SPPT can tell you other things too. An area that’s far off from the certificate, or a taxpayer name with no link to the seller, is worth asking about.

How to check for arrears

  1. Ask the seller for this year’s SPPT and those of recent years, with payment receipts. Five years is a common request, but more is better if the papers exist.
  2. Note the NOP on the SPPT, and make sure the address and location match the property you’re buying.
  3. Check that NOP through the local Bapenda’s PBB checker. Many offer one on a website or app, and some banks and payment channels also show unpaid bills.
  4. If the result looks doubtful, go to the Bapenda office and ask for the payment status. Many regions can issue a letter confirming PBB is paid up.
  5. Compare the land and building area on the SPPT with the certificate and with what you see on site.
  6. Ask the PPAT to check as well. They know how their local Bapenda works.

With vacant land or houses on the edge of town, you sometimes find the property has no SPPT at all, or that one SPPT still covers a larger parent plot from before it was split. Both need sorting out at Bapenda before the sale, and that can take a while.

Warning signs

A few small things should prompt more questions:

  • The seller can’t produce any SPPT, or only one from years ago.
  • The seller suggests sorting out the PBB later, after the AJB.
  • Receipts are handwritten by a middleman rather than issued by an official payment channel.
  • The NOP on the SPPT points to a different address, or its area takes in the neighbour’s land.
  • The house has stood empty for a long time with nobody looking after the bills.

None of these automatically means fraud. An inherited house that’s been empty for years often just has arrears, with no bad intent. But each one needs explaining and fixing before money changes hands.

Who pays

In general, the PBB taxpayer is whoever owns or controls the property when the tax falls due. In a sale, the usual fair arrangement is:

  • Arrears from earlier years, including penalties, are paid by the seller, who held the property during that time.
  • The current year’s PBB is paid by the seller or split by the month of handover, depending on what you agree.

Whatever you choose, write it into the conditional sale agreement, the PPJB (Perjanjian Pengikatan Jual Beli), or another written agreement before the AJB. Add a deadline: arrears paid in full a set number of days before signing, with the receipts handed to the PPAT.

If the seller is short of cash, there are safer options than you paying up front with nothing on paper. For example, the arrears can be paid out of a portion of the price that’s held back, with a written agreement and clear receipts. Work out the mechanics with the PPAT.

After the AJB: updating the SPPT

Once the certificate is in your name, the name on the SPPT doesn’t always follow automatically. Apply to Bapenda to change the taxpayer details, often called SPPT mutation (mutasi SPPT), with your new certificate and whatever else they ask for. Next year’s SPPT will then be issued in your name and reach the right address. The title transfer itself is explained in our guide to the title transfer process.

Keep in mind that PBB is a yearly cost for as long as you own the property. Put it in your budget, along with the other easily missed costs in our guide to hidden costs of buying a home.

Wrapping up

Before paying any deposit, get the SPPT and PBB receipts for recent years, check the NOP with Bapenda, and match the details against the certificate. Write down who clears the arrears and by when. For local penalty rules and validation requirements, ask the Bapenda or PPAT in your area. The other paperwork you’ll need is in our home buying document checklist.

If you’re preparing to buy a house or land in South Kalimantan, the Vorneo Property team can help you check that the paperwork is complete.