BPHTB (Duty on the Acquisition of Land and Building Rights) is a tax that many homebuyers only realize they have to pay after agreeing on a property's purchase price. In fact, Jakarta Provincial Regulation (Perda DKI Jakarta) No. 1 of 2024 has set the Non-Taxable Acquisition Value (NPOPTKP) at IDR 250 million for first-time property acquisitions.This threshold is especially relevant if you're planning to buy a home in East Jakarta, including developments such as Jakarta Garden City.

The problem is that many buyers only become aware of this obligation just before signing the sale agreement, leading them to ask: Who pays the BPHTB the buyer or the seller? The answer isn't something decided at the closing table; it's already clearly regulated by law.

Here's what you need to know before you're caught off guard at the notary's office.

What Is BPHTB?

The buyer is responsible for paying the BPHTB or more precisely, anyone acquiring legal rights to land and/or buildings.

By definition, BPHTB is a regional tax imposed on the acquisition of land and property rights.

This is stipulated under Law No. 1 of 2022 on Fiscal Relations between the Central and Regional Governments (HKPD), Article 47, which sets a maximum tax rate of 5%, while allowing each regional government to determine the exact implementation through local regulations.

Because BPHTB is a local tax rather than a national tax, the applicable exemptions and thresholds vary from one city or region to another. This explains why Jakarta's NPOPTKP differs from those in other regions.

The seller also pays tax but it's a different obligation, namely the Final Income Tax (PPh Final).

So if it feels like both parties are paying taxes during the transaction, that's because there are two separate tax obligations, each assigned to a different party not because one person is being taxed twice.

How to Calculate BPHTB and When It Must Be Paid

So, how much BPHTB do you actually have to pay?

The general formula is:

BPHTB = Maximum Tax Rate (5%) × (NPOP ? NPOPTKP)

Here:

• NPOP (Acquisition Value of the Tax Object) is based on either the agreed transaction price or the government's assessed property value (NJOP), whichever is higher.

  
  

For example:

Suppose you purchase a property in East Jakarta with an NPOP of IDR 800 million.

With Jakarta's NPOPTKP of IDR 250 million for a first-time acquisition:

BPHTB = 5% × (IDR 800 million ? IDR 250 million) = IDR 27.5 million

Keep in mind that the NPOPTKP differs across Indonesia.

Although Law No. 28 of 2009 establishes a minimum exemption threshold of IDR 60 million, local governments are free to set higher amounts through regional regulations, as Jakarta has done.

Equally important is when the tax must be paid.

The buyer is required to settle the BPHTB before signing the Sale and Purchase Deed (AJB).

In other words, BPHTB cannot simply be paid later in installments. It is an administrative requirement that determines whether the property transfer can legally proceed on the scheduled signing date.

Additional Costs Buyers Often Overlook

After calculating the BPHTB, are all your purchasing costs covered?

Not quite.

As mentioned earlier, the seller is responsible for paying a Final Income Tax (PPh) of 2.5% of the transaction value.

Although this tax legally belongs to the seller, it is often reflected in price negotiations.

There are also PPAT (Land Deed Official) service fees for preparing and signing the deed, with fees generally capped at 1% of the transaction value.

If the property still carries an HGB (Right to Build) title, you should also budget for:

• Certificate transfer fees

• Costs of upgrading the title to SHM (Freehold Title

  
  

Although these processes are often handled together, each has its own associated costs.

If you're financing the purchase through a mortgage (KPR), additional expenses include:

• Loan origination (provision) fees

• Property appraisal fees

• Mortgage insurance premiums

  
  

Altogether, these additional expenses can easily amount to 8–10% of the property's purchase price.

You May Qualify for BPHTB Incentives

Before setting aside the full amount, ask yourself one important question:

Do you qualify for a tax reduction?

The Jakarta Provincial Government introduced BPHTB incentives effective retroactively from August 2025 offering 50–75% reductions or even full exemptions for certain eligible groups.

Eligible categories include:

• Low-Income Communities (MBR)

• Veterans

• Civil servants

• Members of the Indonesian National Armed Forces (TNI)

• Members of the Indonesian National Police (Polri)

• Legal heirs

  
  

Do these incentives apply automatically?

No.

Applicants must still satisfy the required administrative conditions and formally submit an application. The discount is not automatically reflected in the initial tax calculation.

So before assuming you'll have to pay the full amount, it's worth checking whether you qualify for one of these incentives.

A Cost Checklist Before Signing

Before deciding to purchase a property, make sure your budget includes these seven key cost components:

1. Purchase price of the property

2. BPHTB (based on the applicable NPOP and local NPOPTKP)

3. Final Income Tax (PPh) (primarily applicable to resale properties or mortgage takeovers)

4. PPAT service fees

5. Certificate transfer fees

6. Mortgage-related costs (loan origination, appraisal, insurance) if using home financing

7. Annual Land and Building Tax (PBB) as an ongoing ownership expense

   
   

Not every buyer will incur every one of these costs in exactly the same way.

However, overlooking even one item can significantly disrupt your budget on closing day.

For newly developed homes in professionally managed townships such as Jakarta Garden City, the sales team can usually provide a comprehensive cost simulation from the beginning, saving you from having to calculate everything manually.

Calculate First, Sign Later

The purchase price you agree on with the seller is only the starting point not the final amount that will leave your bank account.

The difference can be substantial enough to affect your financial planning if you only discover it shortly before signing.

Ultimately, BPHTB is just one of several mandatory costs that should be planned for from the outset not something to deal with at the last minute.

If you're considering purchasing a home in Jakarta Garden City, take advantage of the JGC team's free total cost simulation, including an assessment of any BPHTB incentives that you may be eligible for.