Land Rezoning: 3 Steps to Boost Your Property Value
Every land in Indonesia is categorized under many types based on its purposes. This regulation is what we call as “land zoning”. Nevertheless, it’s possible to build a house or villa on a land for agricultural, for example, by doing land rezoning or IPPT. Understanding this property zoning laws is beneficial for those who want to boost their property value.
What is Land Zoning?
Before we discuss about land rezoning, we need to know about land zoning first. Land zoning is a law that regulates and determines how land can be used.
In Indonesia, there are many types of land zoning:
- Agricultural land.
- Residential land.
- Commercial land.
- Tourism land.
- Commercial & residential land.
- Conservation zone.
Every type of land zoning applies in Indonesia has its own functions and purposes. For instance, agricultural land is only allowed for agricultural purposes. However, the function of agricultural land can be changed to other functions by conducting land rezoning.
So, ensure that the land is suit to your property investment goals if you want to lease a land. You can check the land’s status at Bali’s National Land Agency and cooperating with lawyers to help you checking the land’s status through due diligence.
Land Rezoning Definition
As we mentioned earlier, lands in Indonesia are categorized into six types of land zoning that makes every land has its function.
However, there’s a chance to change the land’s status through land rezoning. This practice commonly happen on agricultural land to non-agricultural land (residential, commercial, or tourism land).
Land rezoning or Izin Perubahan Penggunaan Tanah Pertanian ke Non-Pertanian (IPPT) in Indonesian, is a permit to change the land’s function from agricultural to non-agricultural function.
This property zoning law takes place due to the growing demands for residential, commercial, and tourism land. Additionally, this strategy presents improved and more suitable uses for the land. Hence, the land value will increases.
The process of changing land zoning involves multiple steps. Land rezoning can be time-consuming, costly, and challenging since property zoning laws are meticulously considered to evaluate the optimal land uses.
Each region, whether it be a town, cities, rural area, and country, possesses unique and specific procedures for land zoning. This is why the process of land rezoning requires careful evaluations and considerations.
The three steps of land rezoning in Indonesia will be explained below!
The Land Rezoning Process
You can apply for the land rezoning process by at the nearest BPN office where the land is situated. Here are two steps of obtaining IPPT:
1. Prepare the Required Documents
The documents needed may be differ in each city and the policy can change based on the policy in each government. In general, there are some documents you need to prepare, such as:
- Photocopy of applicant’s ID card (KTP).
- Power of attorney, if authorized by the applicant. Complete with ID card and family card (KK).
- Photocopy of land right in the form of certificates and letter C.
- Applicant’s tax identification number (NPWP).
- PBB tax payment.
- Land location map.
- Draft of land use plan.
- Details on the social aspects related to the change plan.
2. Visit BPN Office
After you gathered all the documents needed, you can visit BPN office to apply for the land rezoning.
If there’s no any problem regarding your documents, the process will takes time around 12 working days. However, if there’s problem, the duration may be longer.
Land Rezoning Cost
The land rezoning cost may be varies. It depends on Nilai Objek Wajib Pajak (NJOP) and the area where the land is situated. However, some regions in Indonesia doesn’t have a specific fee and only entail administrative charges.
