Want to Buy a House, What Does PPJB & AJB Mean? My Money – 4 hours ago

Jakarta, CNBC Indonesia – When it comes to buying and selling houses or property assets, there will be terms that may sound foreign to your ears. Call it a Binding Sale and Purchase Agreement (PPJB) and a Sale and Purchase Deed (AJB).

Not infrequently, these two terms sound confusing. However, if you really have the intention to buy this asset, you must understand it well in advance.

In fact, both PPJB and AJB are important documents. What is the difference between these documents? The following is the explanation.


Reporting from the rumah.com site, PPJB or better known as a property sale and purchase agreement is made when the price payment has not been paid in full. The contents of the PPJB itself are the price, when it is due for repayment, and the conditions for making the AJB.

Obviously, the certificate is still in the seller’s name until all clauses are met.

In essence, the purpose of the PPJB is of course as a temporary binder so that property assets are not sold to other parties, until finally a transaction occurs and an AJB is made before the Land Deed Making Officer (PPAT).


AJB is proof of a property asset transaction, AJB is issued by the PPAT (Land Deed Making Official), not by the National Land Agency (BPN). When someone pockets AJB, then he has purchased property assets from one party in full.

AJB itself is useful when you process a transfer letter from the old owner of the property.

Having an AJB does not mean you are the legal owner of the property

AJB is not legal proof of land ownership because it is only a document that proves the transfer of rights to land and buildings.

Based on Law number 5 of 1960 concerning Agrarian Principles, there is no certificate of proof of land/property ownership in the form of AJB. The known ones are SHM (Certificate of Ownership Rights), SHGB (Certificate of Building Use Rights), SHGU (Certificate of Business Use Rights), or SHSRS (Condominium Unit Rights Certificate).

SHM is the highest ownership and has the strongest rights. SHGB and SHGU have a time limit, because their status is like ‘rented.

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