Rules & land · Indonesia

Indonesia: Three Developer Checks Before Buying a Home

On 11 October 2026 detikProperti reminded buyers that price should not be the main criterion when buying a home in Indonesia. Expert Steve Sudijanto advises checking the land and the PBG permit, the infrastructure, and the developer's registration.

News of Published in DOMA News: 3 min read

Key points

  • Irresponsible developers are becoming more common, and many buyers do not grasp the risk of buying an unfinished home.
  • Check one: does the developer own the land and hold a PBG permit.
  • Check two: roads, water, electricity, waste collection and drainage.
  • Check three: the company profile and its entry in the Sireng developer registry.

What the expert warns about

On 11 October 2026 detikProperti published a piece on how buyers in Indonesia can avoid irresponsible developers. The stated reason is that such companies are becoming more common, and many buyers are drawn by affordable prices without weighing the risk of buying a house that is not yet built.

The definition comes from Steve Sudijanto, a property analyst and director of PT Global Asset Management. In his words, an irresponsible developer is one who breaks promises or agreements made at the start.

Why projects run late

Sudijanto named two reasons why homes are not handed over on time. The first is that permits are missing or incomplete. The second is that the company lacks the money to finish. In his view, the problem nearly always comes down to one of these two.

He added that when a project has trouble, the developer usually will not say so, especially once building is under way. That is why checks must be done before a contract is signed.

Check one: land and permit

First, find out whether the land under the project already belongs to the developer. Then confirm it has a PBG (Persetujuan Bangunan Gedung, the building approval). The expert called this the main condition for a smooth project, together with the financial health of the company.

Check two: infrastructure

Location remains a key criterion, but the home must also be livable. At minimum the roads inside the estate and out to the main road should be in good shape, with street lights and road signs. After that, check water, electricity, waste collection, drainage and clean water supply.

The report also lists social and public facilities such as places of worship, a security post and children's play areas.

Check three: company and registry

The company's profile and licences can be checked on its official site or social media. The housing estate itself can be checked through Sireng (Sistem Informasi Registrasi Pengembang, the developer registration information system). It is run by the Ministry of Housing and Settlement Areas together with BP Tapera. The system shows whether a developer belongs to an industry association.

What it means beyond Java

The article is aimed at the general Indonesian buyer and is not about Bali directly. The same questions apply to projects on the island. The report gives no statistics on complaints about developers and names no specific projects or companies. It is an expert's advice, not an audit report.

For a foreign buyer in Bali looking at off-plan villas, this list shows where checking starts: land documents, the building permit, the developer's finances and its entry in the registry.

What happens next

The report announces no new rules or dates. Watch for publications from the Ministry of Housing and BP Tapera on developer checks through Sireng.

What it means for investors

Before paying a deposit on an unfinished property, ask the seller for the land documents, a copy of the PBG and company details. Compare the handover schedule with the permit stages and ask what money will complete the project. Check that the developer is listed in Sireng and keep a screenshot of the check. We advise not treating a price discount as payment for risk until the land and permit questions are closed.

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Q&A

What is PBG?

Persetujuan Bangunan Gedung, the building approval. The expert advises checking it before buying.

Where can I check a developer?

In Sireng, run by the Ministry of Housing and BP Tapera. It shows whether the developer belongs to an association.

Source
detikProperti, published October 11, 2026, language: Indonesian

Prepared by the DOMA editorial team from public reports, with the original source linked above. This is a news review, not legal or tax advice. Not a public offer.

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