balivillacareValuing a Bali villa: licensed appraisers, NJOP and market value
Key takeaways
- An official valuation comes from a public appraiser licensed by the Finance Minister, working through a KJPP, following the Indonesian Valuation Standards.
- NJOP is the regency's tax value for PBB, set every 3 years, or yearly in developing areas — not a market valuation.
- For BPHTB the base is the price, or NJOP, if the price is unknown or lower.
- Between related parties the 2.5% is charged on the value that should have been received.
- A mortgage auction needs an appraiser's report for mortgage auctions of IDR 10 billion or more.
A Bali villa has several values at once: the price a buyer will pay, the NJOP on the tax bill, the market value the tax office uses for gifts, and the reserve at an auction. Which one applies depends on what is happening to the villa. This page reads the Finance Ministry's rules for licensed appraisers, the 2022 regional tax law, the 2016 transfer-tax regulation and the 2023 auction regulation.
Seven words in a valuation
The terms in the regulations and on the report.
| Term | What it is | Why an owner meets it |
|---|---|---|
| Penilai Publik | Licensed public appraiser. | Licensed by the Finance Minister. |
| KJPP | Public appraisal firm. | Appraisers must work through one. |
| SPI | Indonesian Valuation Standards. | Every appraisal must follow them. |
| NJOP | Tax value of land and buildings. | Set by the regency for PBB. |
| Nilai pasar | Market value. | The base for gifts and inheritance. |
| Hubungan istimewa | Related parties. | Where the tax office can substitute a value. |
| Nilai limit | Auction reserve. | Needs an appraiser above a threshold. |
Who may give an official valuation
Valuation is “proses pekerjaan untuk memberikan opini tertulis atas nilai ekonomi suatu objek penilaian sesuai dengan SPI” — written opinion of economic value under the Indonesian Valuation Standards (PMK 101/2014 Pasal 1). A public appraiser is licensed by the Minister of Finance (Pasal 6) and must work through a KJPP, a firm licensed for the purpose (PMK 228/2019 Pasal 7(6)), within the class of the license. The four classes are simple property, property, business and personal property; simple property covers a single house, apartment, shophouse or kiosk and residential land of up to 5,000 m² for one house (Pasal 5). Appraisers must follow the professional code and the SPI (PMK 101/2014 Pasal 42). Suspensions and revocations are announced to the public; we found no public online register to check a license.
Which value is used where
| Value used | Rule | |
|---|---|---|
| Annual land and building tax (PBB) | NJOP, set by the regency every 3 years or yearly | UU 1/2022 Pasal 40 |
| BPHTB on a sale | The price; NJOP if the price is lower or unknown | Pasal 46(2)-(3) |
| BPHTB on a gift or inheritance | Market value; NJOP if higher | Pasal 46(2)(b), (3) |
| Seller's 2.5%, arm's length | The value actually received | PP 34/2016 Pasal 2(2)(d) |
| Seller's 2.5%, related parties | The value that should have been received | Pasal 2(2)(c) |
| Mortgage auction of IDR 10bn or more | An appraiser's report sets the reserve | PMK 122/2023 Pasal 57 |
NJOP is a tax value
NJOP is the base for the annual land and building tax, set by the regional head through the PBB valuation process every three years, or yearly where an area is developing (UU 1/2022 Pasal 40). PBB in full. It enters a sale only as a floor for BPHTB: if the acquisition value is unknown or lower than that year's NJOP, NJOP is used (Pasal 46(3)).
Market value for gifts, inheritance and company contributions
For exchange, gift, bequest, inheritance and contributing land to a company, the BPHTB base is market value (Pasal 46(2)(b)), and the seller's 2.5% on those transfers is also on market value (PP 34/2016 Pasal 2(2)(e)). Gifting to family.
Need a villa valued for a sale, gift or loan?
Tell us what the valuation is for. Five questions, and your details are the last step.
Related parties, auctions and the tax office
For a sale between related parties, the 2.5% is on “nilai yang seharusnya diterima” — the value that should have been received — which the Elucidation describes as fair market price or an independent appraiser's valuation (PP 34/2016 Pasal 2(2)(c)). The Director General may re-determine income between related parties by comparable-price, resale-price, cost-plus or other methods (UU PPh Pasal 18(3)). We found no separate power to replace an arm's-length price.
At a mortgage foreclosure the seller sets the reserve from a government or public appraiser's report, an assessor's estimate or its own estimate (PMK 122/2023 Pasal 56). An appraiser's report is required where the reserve is IDR 10 billion or more, where the mortgagee is an individual, or where the lending institution will bid (Pasal 57); the reserve lies between liquidation and market value (Pasal 59), and the report is valid for 12 months (Pasal 60). Mortgages and default.
Contributing a villa to a company
Putting land into a company — “pemasukan dalam perseroan” — is a BPHTB object (UU 1/2022 Pasal 44(2)), and its base is market value (Pasal 46(2)(b)). An owner moving a villa into a PT, or a shareholder paying for shares with land, needs a market value that will stand up, which is where a licensed valuation is used. PT PMA and the villa.
Choosing an appraiser
The service must match the class of the appraiser's license (PMK 228/2019 Pasal 7(1)): a single house or residential plot up to 5,000 m² for one house falls in simple property; a villa complex, or land and buildings beyond that, in property; a villa business as a going concern, in business valuation. The appraiser signs the report through a KJPP, and follows the professional code and the SPI as the association sets them, so far as they do not conflict with the Ministry's rules (PMK 101/2014 Pasal 42).
Using a valuation in a sale
A valuation from a licensed appraiser is evidence of market value: useful for a related-party sale, a gift, a contribution of land to a PT, or a dispute over value. It does not set the price an arm's-length buyer pays. Taxes on selling.
What this page does not cover
- What any villa is worth. We give no prices.
- Bank collateral valuation rules for mortgages, not read.
- Appraisal fees.
Common questions
Who can value a Bali villa officially?
A public appraiser licensed by the Finance Minister, working through a KJPP and following the Indonesian Valuation Standards (PMK 101/2014 as amended by PMK 228/2019).
Is NJOP the market value of my villa?
No. NJOP is the regency's tax value for PBB, set every three years or yearly in developing areas. For BPHTB it acts as a floor: if the price is lower or unknown, NJOP is used.
Can the tax office change my sale price?
Between related parties the 2.5% is charged on the value that should have been received, at fair market price or an independent valuation, and the DGT can re-determine related-party values (UU PPh Pasal 18(3)).
Does a mortgage auction need a valuation?
Yes for mortgage auctions with a reserve of IDR 10 billion or more, where the mortgagee is an individual, or where the lending institution bids; the report is valid for 12 months (PMK 122/2023).
Which license covers a single villa?
The simple-property class covers one house or apartment and residential land up to 5,000 m² for one house; larger properties need the property class.
Sources cited on this page
- PMK No. 101/PMK.01/2014 — public appraisers
- PMK No. 228/PMK.01/2019 — amendment
- UU No. 1 Tahun 2022 — Pasal 40, 46
- PP No. 34 Tahun 2016 — Pasal 2
- UU No. 7 Tahun 2021 (HPP) — UU PPh Pasal 18(3)
- PMK No. 122 Tahun 2023 — auctions
Every figure above links to the source it was read from. This page was last changed on 15 October 2026. How we check this.