Due Diligence Checklist

Property: Villa/Land Assessment Phase

Before you sign any lease or put down a deposit, request the following documents from the landlord or their agent. If a landlord is hesitant to provide these, consider it a red flag. Pelangi Indonesia Consultancy can assist you in verifying the authenticity of every document on this list.

1. Proof of Identity & Ownership

• Copy of KTP (Kartu Tanda Penduduk): The landlord’s Indonesian National ID card.

  • Why: We must verify that the person you are negotiating with is the actual person named on the land certificate.

• Copy of Family Card (Kartu Keluarga – KK):

  • Why: This reveals the owner’s marital status. Under Indonesian law, property is often considered a marital asset.

• Spousal Consent Letter (Surat Persetujuan Suami/Istri):

  • Why: If the owner is married, their spouse must sign the lease agreement or provide written consent. Without this, the lease can be nullified later by the spouse.

• Original Land Certificate (Sertifikat Hak Milik – SHM):

  • Note: Ask to see the original, but a clear color copy is acceptable for the initial check.

  • Why: We check for encumbrances, mortgages (Hak Tanggungan), or if the certificate is currently held by a bank.

2. Building & Zoning Permits

• PBG (Persetujuan Bangunan Gedung) / Old IMB (Izin Mendirikan Bangunan):

  • Why: This is the building permit. We must ensure the permit matches the actual function of the building. A permit for a “Residential House” (Rumah Tinggal) is different from a “Homestay/Pondok Wisata.”

• SLF (Sertifikat Laik Fungsi):

  • Why: For newer buildings, this certificate proves the building has passed safety and function inspections.

• ITR (Informasi Tata Ruang) / Zoning Advice:

  • Why: If the land is vacant, this document confirms the specific zoning (Pink, Yellow, Green). If the landlord doesn’t have it, Pelangi Indonesia can check the coordinates for you.

3. Financial & Tax Compliance

• PBB (Pajak Bumi dan Bangunan) Receipts:

  • Requirement: Ask for proof of payment for the last 3 to 5 years.

  • Why: You do not want to inherit unpaid land taxes. The lease agreement should clearly state that all outstanding taxes prior to the lease date are the landlord’s responsibility.

• Proof of NPWP (Nomor Pokok Wajib Pajak): The landlord’s Tax ID.

  • Why: Necessary for withholding tax calculations on the lease payment.

4. Operational & Community Documents (If taking over an existing villa)

• NIB (Nomor Induk Berusaha): If the villa is already running as a business.

• Operational License (Izin Operasional / Pondok Wisata):

  • Why: To verify if the current license is transferable or if you need to apply for a new one.

• Banjar Letter / Domicile Letter:

  • Why: Proof that the local community has previously approved the existence of the rental business.

• Staff Contracts:

  • Why: If you are taking over staff, you need to know their employment status and length of service for severance pay calculations (THR).

5. Access & Infrastructure

• Road Access Agreement:

  • Why: If the property does not touch a public road directly, there must be a written agreement granting you the right to use the private access road (gang).

• PDAM (Water) and PLN (Electricity) ID Numbers:

  • Why: To check for any outstanding utility bills.

Need Help Verifying These?

Collecting these documents is step one. Checking them for validity is step two. Fake certificates and forged signatures do happen.

Send this checklist to your potential landlord. Once you have the documents, forward them to Pelangi Indonesia Consultancy. Our legal team will perform a comprehensive Due Diligence check to ensure your investment is secure.