Property tax
Property tax is levied at 0.5% of the property’s value. The assessment value of taxable property is determined as a percentage of the deemed fair market value of the property, as follows:
- 40% Forestry and plantation land
- 20% Mining land
- 40% for any other type of land where the sale value of the land is more than IDR 1 billion (US$106,101)
- 20% for any other type of land where the sale value of the land is less than IDR 1 billion (US$106,101)
Property sales tax - When property is sold there is tax to be paid by both the selling and the buying party. This is 5%, for each, over the amount that is on the sales contract. However please be aware that the amount on the sales contract may be different to the value of the property you are paying. This tax has to be paid to the notary in charge of the transaction. Make sure that you ask about this tax when buying a property as it is often not included in the overall value of the property and you may get a surprise once tax is added.
Home insurance
It is important to note that Indonesia is in a part of the world that is very susceptible to natural disasters. As can be seen from the recent past, due to its placing near tectonic plates, Indonesia is often subjected to severe tsunamis, earthquakes and even tropical storms. Therefore it is advised that when looking at home insurance, you should evaluate the likelihood of natural disasters by researching the areas history and get the appropriate home insurance. It is important that you specify when asking, about natural disasters to make sure that you are fully covered. For a premium insurance covering all likelihoods of home destruction, you will have to pay roughly US $700.
Stamp duty
Many official documents in Indonesia must be attached with a blue stamp called a meterai in order to be considered legal. A person must sign the stamp and if part of the stamp does not include a person's signature, it is not legal. Meterai are available at the post office (Kantor Pos) and as of June 2011 cost Rp6,000 each.
Anyone - Indonesian citizens and foreigners alike - can use meterai to validate documents. They can also be used for personal documents, such as promissory notes for personal loans.