Indonesia's land registration rule, Government Regulation (PP) 24 of 1997, has a line most home buyers never read. Article 39(1)(d) tells the land deed official, the PPAT, to refuse to draw up a deed if either party acts on "an absolute power of attorney that in substance contains a transfer of rights" (surat kuasa mutlak). The elucidation of that article defines it as a power the grantor cannot revoke, so that in substance it transfers the property. The rule applies nationwide, including to the sale deed (AJB) for a resale house in Bekasi.
The situation comes up often in the resale market. The owner works in Kalimantan or abroad, so a sibling turns up at the notary's office with a power of attorney. Or one spouse named on the certificate is ill and only the other attends. A power of attorney like that is fine to use, as long as its wording is right and the grantor still has the right to sell. If not, the buyer is the one left exposed.
Ordinary Power of Attorney vs Absolute Power of Attorney
The Civil Code (KUHPerdata) sets the baseline. Article 1796 says a power drafted in general terms only covers management. Selling property needs a power "in express words". Articles 1813 and 1814 then say a power ends when it is revoked, or when the grantor or the agent dies, is placed under guardianship, or goes bankrupt, and that the grantor can revoke it whenever they want.
An absolute power of attorney turns those rules around. It usually says the power "cannot be revoked" and "does not end for any reason", often with an express waiver of Article 1813. With wording like that, the agent can act as the owner without any sale ever taking place. That is what Article 39 blocks.
| Document | Typical wording | Usable for the AJB? |
|---|---|---|
| General power of attorney | "To manage all affairs" of the grantor | Not enough. Article 1796 limits it to management |
| Specific power to sell | Names the act of selling, the house, and usually the certificate number | Yes, while the grantor is alive and has not revoked it |
| Absolute power of attorney | "Irrevocable", "does not end on death" | The PPAT must refuse (PP 24/1997, Art. 39(1)(d)) |
There is one grey area. In notarial practice, an irrevocable power to sell is sometimes attached to a sale-and-purchase agreement (PPJB) whose price has already been paid in full. In practice, some notaries and PPATs treat that as different from the banned kind, since the buyer has paid. The PPAT makes the first call, and a judge makes the final one if it ends up in court. For a buyer, the safe move is to ask the PPAT whether they will accept the seller's power of attorney before any money changes hands.
Six Checks Before You Sign the AJB
- Read the operative sentence. The power must say plainly that it covers selling or transferring this house, with the address and certificate number. If it only says "manage", ask the seller for a new one.
- Look for an irrevocability clause. "Cannot be revoked" or "does not end for any reason" signals an absolute power. Show that section to the PPAT before a signing date is set.
- Confirm the grantor is alive and still entitled. Under Article 1813 the power lapses when the grantor dies. The house then becomes part of the estate, and only the heirs can sell it. Ask to speak to the owner directly a few days before the AJB, for example on a video call witnessed by the notary.
- Check the owner's spouse. Article 36(1) of the Marriage Law (UU 1/1974) says either spouse deals with joint marital property with the consent of both. A house bought during the marriage is usually joint property, so the spouse's consent or power of attorney is needed too, unless there is a prenuptial or postnuptial separation-of-property agreement.
- Check where and how the power was made. In practice, PPATs usually want a power to sell made before a notary. One made before a foreign notary needs an apostille from that country, because Indonesia joined the Apostille Convention in 2022. The other route is to sign it before a consular officer at the Indonesian embassy or consulate. Countries outside the convention still go through legalisation at the Indonesian embassy or consulate.
- Pay into the owner's account. This is our advice, not a legal requirement. Paying into an account in the certificate holder's name, not the agent's, lowers the risk of the money stopping halfway. Article 1802 does require the agent to report and account to the grantor, but chasing that later is far more work.
If the PPAT refuses to draw up the deed, Article 39(2) requires the refusal in writing, with reasons. Keep that letter. It helps if the seller insists their power of attorney is valid.
What If the Power Was Quietly Revoked?
Article 1815 of the Civil Code gives buyers some cover. A revocation that was only communicated to the agent cannot be used against a third party who signed without knowing about it. But that protection only matters once there is a dispute, and land disputes can run for years. So check number 3 still matters: a call with the owner close to the AJB date costs far less than proving good faith in court.
Article 62 of PP 24/1997 also says a PPAT who ignores Article 39 faces administrative action, from a written warning up to dismissal, and can still be sued for damages. PPATs have every reason to be careful. Help them by sending a copy of the power a few days ahead, not at the signing table.
What About Buying From a Developer?
With a new house, the seller is a company, so the question becomes who is authorised to sign. The PPJB and AJB are signed by the directors under the company's articles of association, or by someone holding a power of attorney from them. It is reasonable to ask the notary to show you that authority. At Kingspoint, you can ask who signs the documents for the Emerald 70 house or the Sapphire shophouse, and on what basis, before the signing is scheduled. We walk through the documents from PPJB to AJB in our AJB and land certificate guide.
Frequently Asked Questions
Can an AJB be signed through a power of attorney?
Yes, if it is a specific power that states the act of selling and the property, and the grantor is alive and has not revoked it. The PPAT must refuse if it rests on an absolute power of attorney, one that cannot be revoked and so in substance transfers the property.
What happens if the grantor dies before the AJB?
Article 1813 of the Civil Code ends the power. The house becomes part of the estate, so the heirs must sell it with a certificate of inheritance (surat keterangan waris), not the former agent.
Can a husband sell the house without his wife?
For joint marital property, Article 36(1) of UU 1/1974 requires both spouses' consent. If the wife cannot attend, she usually signs a consent letter or power of attorney. The exceptions are a separation-of-property agreement or separate property, such as a house owned before the marriage or received as a gift or inheritance.
What does a power of attorney from abroad need?
From an Apostille Convention member country, an apostille from that country's authority. From a non-member country, legalisation at the Indonesian embassy or consulate. Ask the PPAT which form they accept before the document is drafted.
Want to know who signs your documents?
Ask the Kingspoint team about the PPJB-to-AJB sequence and the signatory's authority before you pay.
Ask on WhatsAppReferences: PP 24/1997 on Land Registration, Articles 39 and 62 and the Elucidation of Article 39 (text from peraturan.go.id); Civil Code (KUHPerdata) Articles 1796, 1802, 1813, 1814, 1815; Marriage Law UU 1/1974 Article 36. This article is general information, not legal advice. For a specific transaction, consult your PPAT.