Category: Articles

Condominium on the Land with Right to Build over the Land with Right of Management

Mar 22, 2011 | , , ,

Background

Article 7 paragraph (1) and (2) of Law Number 16 of 1985 on Condominium, the developer (the “Developer”) may build a condominium over the land with Right of Management (Hak Pengelolaan) (“HPL”). HPL is a right to control, given by the state which the implementation is delegated to its holder. Rights of land that may be granted over the HPL land are Right to Build (Hak Guna Bangunan) (“HGB”) and Right of Use (Hak Pakai) (“HP”). The Developer is obligated to complete the HGB or HP status of the land prior to the initial offer of any property over the land, in accordance with the prevailing laws and regulation. Therefore, the Developer must be aware of the procedure of the obtaining of such rights and other requirements related to HGB and HP over HPL land, which is set out in the Government Regulation Number 40 of 1996 (“GR 40/1996”) and State Minister of Agrarian/Chief of National Land Agency Regulation Number 9 of 1999 on Procedure of the Granting of Rights of Land and Revocation of Right of State Land and Right of Management (“Regulation 9/1999”).

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Law on Housing and Habitation

Feb 28, 2011 | ,

On 12 January 2011, the Government issued the Law Number 1 of 2011 on Housing and Habitation (“Housing Law”). By the issuance of this law, the existed law on housing Number 4 of 1992 has been revoked. This new Housing Law is divided into 2 (two) parts i.e. housing and habitation. The purpose of this Housing Law is to fulfill the public needs for housing.

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Illegal Occupancy of Land from the Criminal Perspective

Illegal Occupancy of Land from the Criminal Perspective

Feb 28, 2011 | , ,

The illegal occupancy of land is not a new event in Indonesia. The terms illegal occupancy can be interpreted as the act or condition of holding, possessing of rights or assets illegally, such as occupying a land or house, which is not belong to him, illegally (which is forbidden by law). The illegal occupancy of land is an unlawfully act that can be classified as a criminal offense. As we know, the prices of land are very stable and continue to rise along with the times. The illegal occupancy of land can be harming everyone, especially if the land is used for the business purpose. There are many cases that happened on the illegal occupancy of land, such as (i) physical occupancy of land, (ii) cultivation of land, (iii) sale of land, and so on.

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License for National Business Entities as the Construction Services Provider

Feb 25, 2011 | ,

Background

According to Law Number 18 of 1999 on Construction Services, construction services is consultancy services of construction work planning, services of construction work performance, and services of construction work supervision. Construction has a very important role in achieving various aims in order to support the objectives of national development. The construction services are carried out by the construction services provider, in the form of individuals or business entities, whereas such business entities are divided into 2 (two) classifications, that is, (i) national business entities; and (ii) foreign business entities. In order to perform the construction services, there are some requirements in order to obtain the business license of construction services that must be fulfilled by the business entities as the construction services provider (the “License”).

Regulations

There are some regulations that are related to the License for construction services provider in the form of national business entities (the “Business Entities”), such as:

Law Number 18 of 1999 on Construction Services;
Government Regulation Number 28 of 2000 on Business and Society of Construction Services Role (“PP 28/2000”) jo. Government Regulation Number 4 of 2010 on Amendment of PP 28/2000 (“PP 28/2000 jo. PP 4/2010”); and
Decree of Minister of Habitation and Regional Infrastructure Number 369/KPTS/M/2001 on Guidelines of Licensing for National Construction Service Business (“Kepmen 369/2001”).
Licenses

Each Business Entities shall have the business License issued by the Regional Government where the Business Entities are located. The License shall be obtained by the Business Entities in order to perform or conduct the construction services in all regions of Republic of Indonesia. The License which has been given to the Business Entities is valid for 3 (three) years and can be extended. According to Article 14 of PP 28/2000 jo. PP 4/2010, the License will be given to the Business Entities, which have fulfilled the requirements, such as:

(i) Have the registration certificate of business entities issued by the Certification Unit of Business Entities (the “Unit”) which is formed by the Agency of Construction Services Development (the “Agency”)

The registration means an activity in order to determine the competent of skill and expertise of the profession of the individuals or business entities; an activity in order to determine the business license in accordance with the classifications and qualifications which are embodied in the certificate issued by the Unit.

(ii) Completed the requirements provided by other prevailing laws and regulations related to the business activity.

The specific requirements in obtaining the License for the Business Entities are set out in Kepmen 369/2001. In order to obtain the License, the national business entities shall apply through certain form as stipulated in the attachment of Kepmen 369/2001 to the Regional Government, that is, Regent/Mayor or appointed Officer. The application shall be enclosed with:

(i) the copy of the business entities certificate that has been registered by the Unit;

(ii) the copy of the receipt of the application administration fee payment;

(iii) other administration requirements that is regulated by the Regional Government in accordance with the prevailing laws and regulations; and

(iv) each License will be given code number in accordance with the guidance of numbering of License as stipulated in the attachment of Kepmen 369/2001.

Other technical matters in relation to the granting of License are further stipulated by the Regional Government.

Sanction

In relation to the violation of License, the Regional Government Regulation shall stipulate the administration sanction in accordance with Article 35 paragraph 1 of PP 29/2000 jo. PP 4/2010, such as (i) written warning; (ii) suspension of business and/or profession license; (iii) revocation of business and/or profession license.

Helen Taurusia, SH

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For the last 15 years, our members have written many articles that have been published in various blogs that we manage, including Indonesia Real Estate Law blog and Hukum Properti blog. Our members have also participated in various directories and websites within and outside our firm's blogs, including different legal topics outside real estate-related topics. Thus, this blog is set up as a portal of all of our articles and materials that our members have written to date, within and without our firm's blogs. This blog covers a wide-array of topics, different from specialized topics as in our previous two blogs, Indonesia Real Estate Law and Hukum Properti. We build this blog to be a main source for the readers to understand the vast legal knowledge of our firm and which our firm will continue to share.

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