Living In Indonesia Living in Indonesia Guides for foreign residents in Indonesia since 2007

Indonesian Legal System

In Indonesia you will deal with three legal practitioners: the notary (notaris), the advocate (advokat, still often called pengacara), and the legal consultant (konsultan hukum). Knowing which does what saves real money.

A notaris holds a law degree (SH) and a Master of Notarial Law (M.Kn), must be at least 27, and serves two years’ practical training before appointment. Notaries are appointed by the Ministry of Law (Kementerian Hukum, split from the old Ministry of Law and Human Rights in the 2024 reorganisation) through its Directorate General of General Legal Administration (AHU). The notaris drafts and authenticates deeds: company incorporation, agreements, leases. But a notaris is a neutral official, not your adviser; the office authenticates and archives your deed without negotiating for you, so take independent advice before you sign. And because only notaries can access the AHU system, company incorporation must run through a notaris, not a lawyer — Okusi Associates’ guide covers that process.

Many notaris also hold a PPAT licence (Pejabat Pembuat Akta Tanah, Land Deed Official), which lets them execute the sale-and-purchase deed (AJB) that transfers land title. PPATs are appointed by the Ministry of Agrarian Affairs and Spatial Planning / National Land Agency (ATR/BPN), not any “Ministry of Lands”. You can verify a PPAT’s registration through the Sentuh Tanahku app, and the fee is capped by regulation at one per cent of the transaction value.

An advocate holds an SH degree, completes the advocate training course (PKPA), passes the bar examination, serves a two-year internship, and is appointed by an advocate organisation, in practice PERADI, under Law No. 18 of 2003. Before practising, the advocate swears an oath in open session of the High Court; note that the court administers the oath but does not issue the licence, the organisation does. Advocates handle litigation, criminal matters, disputes and court representation.

The most common mistake I see foreign investors make is going to an advocate when they need a notaris, or the reverse. It is an easy error for anyone from an Anglo-Saxon system, where a “public notary” merely witnesses signatures and needs no legal training. In Indonesia the notaris is a fully qualified lawyer, and a wrong turn wastes time and money.

Another trap: assuming anyone with “SH” after their name is a qualified notaris or advocate. SH is only a law degree; on its own it licenses nobody. Plenty of dubious institutions here sell the letters.

So verify. Ask to see the credential: a notary’s appointment decree (SK), an advocate’s membership card, a PPAT’s registration on Sentuh Tanahku. A genuine professional will gladly show you; hesitation is your signal to walk away.

Find a practitioner who speaks your language well enough to follow the detail. Relying on a friend whose English is “not so good” is false economy with legal documents; have everything officially translated before you sign.

The konsultan hukum is the third category. Since Law No. 18/2003 reserved the practice of law to advocates, “legal consultant” is not a licensed profession but a service business, usually run by people with connections to lawyers, notaries and officials. They arrange notaries, translations, licences, permits and visas if you would rather not deal with government offices yourself. Agree a fixed price up front, and remember a consultant is only as good as the professionals behind them.

A few general guidelines:

  • Professional advice is relatively inexpensive here; verify qualifications and hire the best you can.
  • Buying property? Commission proper due diligence; you do not want a 30-year lease on a house with only 15 years of access.
  • Be discerning: do not take things at face value, and get a second opinion.
  • Open your own bank account, keep your own safety deposit box, and hold your own documents.
  • Use an independent adviser. Letting the broker who sells you the property also handle your legal affairs is convenient now and dangerous later.

Doing things the legal way in Indonesia is not as hard as many make out. Apply the caution you would use at home, avoid the pitfalls above, and then settle down to the real business: enjoying life in Indonesia.



Contributor: daniel

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