Companies’ authorized capital is divided into shares. Shares is a moveable goods which give rights to the owner to attend and to vote in the General Meeting of Shareholders (“GMS”), to receive the payment of dividends and the remaining asset as the result of...
Workshop - License of Property Development in Indonesia
A Land Acquisition and Licensing For Property Development In Indonesia from Leks&Co
Reviewing implications of indonesia’s new condominium law on the property industry
Building utilization is an activity of utilizing a building in accordance with the functions which is specified in the building construction license including maintenance, and periodic inspections activity. Building utilization can only be performed after the owner of the building obtains Certificate of Feasible Function. Certificate of Feasible Function hereinafter called SLF means certificate which is granted by Local Government against the building that has been completed and has met the requirement of feasibility function based on examination’s result of building’s feasibility function as a requirement to be utilized. (Article 1 number 16 Local Regulation of DKI Jakarta Number 7 of 2010 on Building).
To get SLF a person must submit a written request to the Head of Department which is responsible in supervision and control of the building. Written request which is submitted must be attached with some documents, as follows:
a. Identity Card (KTP)
b. Taxpayer Identification Number (NPWP)
c. Certificate of land
d. Building Construction License (IMB)
e. Maintenance report or technical building assessment report
f. As built drawing building
Head of Department may suspend or reject the requests of SLF that do not meet the requirements. The suspension of the request of SLF occurs when the requests of SLF do not yet meet the requirements of the building feasible function. The suspension of SLF is notified in writting to the applicant together with the reason of the suspension. The suspension which has passed the time period of 12 (twelve) months from the date of the suspension letter is received can be rejected with rejection notification letter which is given to the head of Neighborhood Association and / or Citizen Association in the applicant’s building areas, if the location of applicant is unknown or the applicant does not want to receive the letter.
SLF is issued within a period of 30 (thirty) days from the date of approval of document of the technical plan documents is granted. The validity period of SLF is different for each type of building. The period of SLF for simple single residential building and a simple row house is unlimited. The period of SLF for single residential building and row houses up to 2 (two) floors are 20 (twenty) years. The period of SLF for luxurious single residential building, the other general buildings, and certain buildings are 5 (five) years.
The request for renewal of SLF of the building is proposed no later than 60 (sixty) calendar days before the expiration of the SLF of the building or extension of the SLF of the building terminates.
A person who utilizes the building but does not have the SLF shall be punished with a maximum confinement of 6 (six) months or a maximum fine of Rp 50,000,000 (fifty million Rupiah).
Maria Amanda
Local Government of DKI Jakarta has issued the Governor Regulation of DKI Jakarta Number 38 of 2012 on Green Building (“Governor Regulation No.38/2012”) the regulation regulates the implementation of the concept of energy efficiency and environmentally buildings. Green building means a building that is responsible against environment and resource efficiency since the planning, construction, utilization, maintenance, until deconstruction (Article 1 number 11 of Governor Regulation No.38/2012).
The intention of issuance of the Governor Regulation No.38/2012 is as a framework for the official or the applicant in order to meet the requirements of a green building, having its purpose to realize the implementation of the building construction by paying attention to the aspect of efficiency, maintanance and using resources efficiently.
Construction of the building with a certain type and size of both new buildings and existing buildings must meet the requirements of green building. The types and size of buildings that must meet the requirements of green building include:
a. Apartment buildings, office buildings, trade buildings, and buildings which have more than one function within one (1) building with the size of entire floor of the building is more than 50,000 m2 (fifty thousand square meters);
b. Business functions, hotel, social and cultural functions, and health care buildings, with the size of the entire floor of the building is more than 20,000 m2 (twenty thousand square meters);
c. Social and cultural functions, educational service buildings, with the size of the entire floor of the building is more than 10,000 m2 (ten thousand square meters).
New buildings mean buildings that are currently in the planning stage. The technical requirements for green building of the new buildings include:
a. Energy efficiency;
Energy efficiency includes the efficiency of the building veil systems, ventilation systems, air systems, lighting systems, building transportation systems, and electrical systems.
b. Water efficiency;
Water efficiency includes the planning of water-saving sanitary equipment and planning of the use of water.
c. Indoor air quality;
Indoor air quality must calculate the air circulation in the room and the input of fresh air so itdoes not harm the occupants and the environment.
d. Land and waste management, and
Land and waste management include the requirements regarding spatial landscape planning on the inside and outside of the building and planning of rainwater reservoir systems, supporting facilities, and solid and liquid waste management.
e. Implementation of construction activities.
Implementation of construction activities includes safety, work health and environment, water conservation when conducting the construction activities, and the management of hazardous and toxic waste in construction activities.
Existing buildings means buildings that are under construction and / or already in the utilization stage. The technical requirements for green building of existing buildings include:
a. Conservation and energy efficiency;
b. Conservation and water efficiency;
Conservation and water efficiency include the use of water efficiently and water quality monitoring.
c. Indoor air quality and thermal comfort, and
d. Operational management / maintenance.
Operational management / maintenance activities include monitoring and evaluation activities.
The planning and construction of the building which violate this Governor Regulation may be imposed with administrative sanction by not issuing Building Construction License (IMB) and / or Certificate of Feasible Function (SLF).
Maria Amanda
It is a great way to invest your money in the debt market since you will be able to make good amount of return without taking unnecessary risk. There are several options available for the investors to invest in the debt instrument and so, it is essential to research...
Government Regulation Number 23 of 2010 (“PP No. 23/2010”) on Implementation of Mining Business Operations is amended by Government Regulation Number 24 of 2012 (“PP No. 24/2012”). There are some matters covered in PP No. 24/2012. Under Article 3 (a) PP No. 24/2012, a...
Under Article 1 of Law Number 20 of 1961 on Revocation of Rights of Land and/or Objects Over the Land (“Law No.20/1961”), President in an urgent circumstance after hearing the Minister of Agrarian Affairs, Minister of Justice and the related Minister may revoke the rights of land and/or objects over the land. Revocation of rights of land and objects over the land can be performed if the land and/or objects over the land are needed for public interest, including the nation’s interests and the common interests of the people, as well as for development purposes.
Submission of the Request of Revocation of Rights of Land
Under Article 2 of Law No.20/1961, the request of revocation of rights of land and/or objects over the land is proposed by an interested party to the President with the intercession of the Minister of Agrarian Affairs (now the Head of the National Land Agency of the Republic of Indonesia), through the Head of Inspection Agrarian (now the Local Office of Provincial National Land Agency). The request is accompanied with:
land-use plan and the reasons;
information about the owner of the rights, and location of the land, size of the land, and the type of right of land that will be revoked;
shelter plan for the party whose rights will be revoked.
The Process of Revocation of Rights of Land
After receiving the submission of request for revocation of rights of land, the Local Office of Provincial National Land Agency asks for the consideration of Local Government’s Head to give its consideration about the request of revocation of rights of land. However, the Local Office of Provincial National Land Agency also asks for the consideration of the appraiser committee to estimate the compensation costs.
Within a period not later than 3 (three) months, the Local Government’s Head should have submitted its consideration and the appraiser committee has to tell the estimation of the compensation costs to the Local Office of Provincial National Land Agency. After obtaining the consideration and estimation of the compensation costs, the Local Office of Provincial National Land Agency submits the request for revocation of rights of land to the Head of the National Land Agency of the Republic of Indonesia.
If within 3 (three) months the Local Government’s Head and appraiser committee has not submitted its consideration, the Local Office of Provincial National Land Agency may submit the request for revocation of rights of land to the head of the National Land Agency of the Republic of Indonesia, without waiting for the consideration from the Local Government’s Head and appraiser committee.
Head of National Land Agency of the Republic of Indonesia submits the request for revocation of rights of land to the President accompanied with the consideration of Minister of Justice and the related Minister. Submission of revocation of rights of land must be implemented to obtain the President’s decision regarding the revocation of rights of land.
Revocation of Rights of Land in an Urgent Circumstances
Under Article 6 of the Law No.20/1961, it regulates that in urgent circumstances, the Local Office of Provincial National Land Agency, after receiving a request for revocation of rights of land, can directly propose the request of revocation of rights of land to the Head of the National Land Agency of the Republic of Indonesia without the consideration of Local Government’s Head and the estimation of the compensation from appraiser committee.
Based on the request, the Head of National Land Agency of the Republic of Indonesia issued a decision letter that provides permission for the interested party to control the land and the object over the land. The decision letter will be followed by presidential decision on the request of revocation of rights of land to be granted or rejected. If the request is rejected, the interested party has to return the land and/or related object to its original condition, and/or give equivalent compensation to the owner of the rights of land.
Decree of the Head of National Land Agency of the Republic of Indonesia on the revocation of rights of land is published in the State Gazette of the Republic of Indonesia and its derivatives will be given to the owner of rights of land and/or objects whose rights were revoked. The content of the decision letter also be announced through the newspapers. The cost of the announcement is carried out by the interested party.
Compensation
Under Article 8 of Law No.20/1961, if the owner of the rights of land whose land will be revoked does not accept compensation because the amount of the compensation is considered less, then he can propose for appeal to the High Court that jurisdiction covers the location of the land and/or related object. The court will determine the amount of compensation.
After the decision letter of the revocation of rights of land is implemented and the compensation is paid, then the land which right of land is revoked is directly controlled by the state.
Maria Amanda