Dividing Inherited Land in Indonesia with an APHB

An APHB (akta pembagian hak bersama, deed of division of jointly held rights) is a PPAT (land deed official) deed that divides jointly owned land into separate ownership for each holder, for example where inherited land registered in the names of all heirs is transferred to one heir alone. The APHB is signed by all joint holders before the PPAT and then registered at the Kantor Pertanahan (Land Office) so that a new certificate is issued in the name of the person receiving the share.

When an APHB is used

The APHB is governed by Article 51 PP 24/1997 (the Government Regulation on land registration) and is one of the deeds a PPAT makes under Article 2 PP 37/1998. In inheritance matters, an APHB is used, among other cases, when:

• one plot of inherited land is to belong to one heir, while the other heirs receive shares from other assets;
• one plot is first split, and each part then belongs to a different heir;
• several plots are divided, for example the first plot for the eldest child and the second plot for the youngest.

An APHB can also be used for joint ownership outside inheritance, for example land bought jointly by several people.

Two routes to dividing inherited land

Article 111 of Permen ATR/BPN 3/1997 (Regulation of the Minister of Agrarian Affairs and Spatial Planning/National Land Agency), as amended by Permen ATR/BPN 16/2021, opens two routes.

First route: a deed of distribution of the estate at the time of transfer by inheritance. If, when the transfer by inheritance (turun waris) is registered, there is already a deed of distribution of the estate (akta pembagian waris) stating that a particular plot passes to one person, the land is recorded directly in that heir's name (paragraph (5)). The deed of distribution can be made privately by all heirs before two witnesses, or as a notarial deed (paragraph (3)).

Second route: joint transfer by inheritance, then an APHB. If there is no distribution yet, the land is registered in the names of all heirs as joint ownership, and the later division is made through a division of jointly held rights (paragraph (4)). This is where the APHB comes in.

The choice of route depends on when the heirs reach agreement, the number of plots, and the tax treatment.

The APHB process for inherited land

1. Prepare a certificate of inheritance (surat keterangan waris) naming all the heirs. See certificate of inheritance.
2. Register the transfer by inheritance (turun waris) at the Land Office with the land certificate, the death certificate, the certificate of inheritance and the heirs' identification. At this stage the inheritance BPHTB (land and building acquisition duty) is paid and the income tax certificate of exemption for inheritance is obtained.
3. Agree on the division. If a plot is to be split, it is measured and split first.
4. The PPAT checks the certificate and taxes for the APHB.
5. Signing of the APHB before the PPAT by all joint holders, in person or through an attorney, with two witnesses.
6. Registration by the PPAT at the Land Office no later than seven working days after signing.
7. A new certificate is issued in the recipient's name, as an electronic certificate.

Taxes on dividing inherited land

At the transfer by inheritance. An inheritance is not subject to income tax (PPh) (Article 4(3) of the Income Tax Law as amended by UU HPP, the Law on Harmonisation of Tax Regulations; Article 6(d) PP 34/2016). For land, this exemption is shown by a certificate of exemption (surat keterangan bebas, SKB) from income tax for inheritance. Under PER-8/PJ/2025 (Regulation of the Director General of Taxes), the SKB is given if the land was reported in the deceased's annual tax return (SPT), unless the deceased's income was below the non-taxable threshold (PTKP).

An inheritance is still subject to BPHTB, which falls due on the date the heirs register the transfer (Article 49 UU 1/2022, the Law on Central and Regional Government Financial Relations, HKPD). The NPOPTKP (non-taxable acquisition value) for an inheritance to blood relatives in the direct line of one degree, including a husband or wife, is at least Rp300 million. For property in Jakarta, the NPOPTKP for inheritance is Rp1 billion (Perda DKI Jakarta 1/2024, the Jakarta regional regulation), and the provincial government grants an ex officio 50% reduction.

At the APHB. UU 1/2022 includes "a separation of rights that results in a transfer" as subject to BPHTB. In practice, the question usually concerns the part an heir receives above their original portion, because that part passes from the other heirs. On income tax, the Direktorat Jenderal Pajak (Directorate General of Taxes) has confirmed that dividing an estate through an APHB can be exempted with an SKB, but a part that passes to someone outside blood relatives in the direct line of one degree may be subject to income tax.

If one heir pays compensation to the other heirs, the transaction may be treated as a sale of that share, with different tax consequences. This is best discussed from the start.

If an heir is a minor, abroad, or does not yet agree

• A minor. The child is represented by a parent or guardian. Because parents may not transfer rights to immovable property belonging to a child under 18 unless the child's interests require it (Article 48 UU 1/1974, the Marriage Law), in practice a court order is needed before the APHB.
• Abroad. The heir can give a power of attorney made before a local notary or an Indonesian mission. Documents from abroad need to be legalised or apostilled to be used in Indonesia. See the foreign documents service.
• No agreement yet. An APHB needs the consent of all joint holders. If agreement is not reached, the parties can turn to discussion (musyawarah) or mediation, and in the end to a claim for division of the estate in court.

Documents to prepare

• The certificate already registered in the heirs' names, or the certificate in the deceased's name if the transfer by inheritance is processed at the same time
• The certificate of inheritance and the deceased's death certificate
• Each heir's KTP (identity card), kartu keluarga (family card) and marriage certificate
• SPPT PBB (annual land and building tax assessment) and proof of payment
• Proof of BPHTB payment and the income tax SKB, according to the stage
• A power of attorney for any heir who is represented, and a court order if an heir is a minor

Inherited property forms part of each heir's separate property (harta bawaan) (Article 35(2) UU 1/1974), so the consent of an heir's spouse is in principle not required.

Frequently asked questions