Background
On 5 December 2018, Governor of DKI Jakarta has issued a Regulation of Governor Number 132 of 2018 on the Encouragement of the Management of Owned Condominium (“Condo Reg”). This Regulation is aimed to manage the management of Owned Condominium so that they will be effective, efficient, and provide legal protection to the Owner, Tenant, and public in making Condominium for healthy, comfortable, safe, and harmonious living environment.
Scope of Owned Condominium Management
Encouragement on the Management of Owned Condominium in this Condo Reg includes:
- Management of transition period;
- Establishment of Owners and Tenants Condominium Units Association (“P3SRS”);
- Management of Joint Facility, Joint Equipment and Joint Land in Condominium;
- Collaboration in the construction of Condominium in stages; and
- Technical guidance and supervisory of condominium management.
Management in Transition Period
General
During the transition period, the Developer of Owned Condominium is required to manage it prior to the formation of P3SRS. The transition period has been determined no later than 1 (one) year from the first delivery of the condominium unit to the Owner. The submission is proven by the minutes of delivery and acceptance.
The developer must submit the following documents to the Owner when the minutes of delivery and acceptance:
- Copy of minutes of delivery and acceptance;
- The draft of tenancy rules;
- Key of the condominium unit; and
- Administration documents of owned condominium unit.
For the condominium unit that has not been sold, the Developer is having legal status as the Owner.
Moreover, the Developer must also complete the obligation of space utilization required in the SIPPT/IPPT prior to the transition period and submit it to Regional Government. This submission is proven with the minutes of delivery and acceptance.
For the condominium built on the right to build over right of management, the Developer has to make a statement in the notarial form regarding its obligation to extend land certificate expiration date.
Obligation in Transition Period
During the transition period, the Developer acts as a temporary manager to carry out management and can cooperate with the manager.
Therefore, the Developer as temporary property manager is required to do several things, namely:
- conduct a separate bookkeeping regarding management fees, to be submitted to P3SRS after the transition period has ended;
- separate the service charge invoices, which include (i) water, (ii) electricity bills and (iii) land and building tax;
- submission of copy of title of division and proportional comparative value (“NPP”) to owner;
- submission of documents to P3SRS;
- facilitating the formation of P3SRS;
providing information about the management of condominium to Owner and Tenant.
Financial Administration during the Transition Period
General
In terms of financial administration in the transition period, the Developer is responsible for the financial administration of the management of the Condominium which consists of management costs and other legitimate businesses.
In addition, the Developer is also responsible for reporting financial record/report to Owner and/or Tenant of the condominium unit.
Legitimate Management Cost and Other Legitimate Businesses
Management cost in the transition period is borne by the Developer and Owner of the condominium unit based on the NPP. The management cost borne by the Owner is obtained from the IPL.
Condominium unit’s Cost means the costs associated with the ownership of the condominium unit used separately, such as Land and Building Tax invoice which is borne and paid by the Owner, as well as the condominium unit’s electricity, water, telephone and multimedia invoices borne by the Owner and/or Tenant.
In this period, the Developer may use and utilize the Joint Facility, Joint Equipment And Joint Land for the benefit of Owner and/or Tenant.
Bookkeeping and Reporting
Regarding bookkeeping and reporting in the transition period, the Developer is obliged to book the income and expenditure of Condominium. While at the end of the transition period, the Developer has the obligation to prepare a report on financial, maintenance, and repair of the building.
Association of Owners and Tenants of Condominium Units
General
The developer must facilitate and finance the formation of P3SRS no later than 6 months before the transition period ends. The facilitation includes:
- Preparation for the formation of P3SRS.
- Meeting room preparation.
- Ownership and/or tenancy data.
Administrative and consumption support.
Preparation of P3SRS Formation
Various preparations are needed to form the P3SRS which include (i) socialization of tenancy, (ii) data collection of Owner and/or Tenant, and (iii) formation of a Deliberation Committee (“Committee“).
Employment socialization must be carried out transparently and accountably, namely directly in the form of face to face and through information media. This was done when the Condominium began to be marketed to the Buyer, before the signing of the Conditional Sale and Purchase Agreement (”CSPA”) and Sale Purchase Deed (“SPA”) and at the time before the formation of the P3SRS.
Owner and/or Tenant Data Collection is based on the principle of legal ownership or residential, which can be proven by proof of ownership or residential, in the form of SHMSRS / SKBG SPA, and/or CSPA along with payment receipt and written agreement to rent condominium unit.
Regarding the data collection of the Owner and/or Tenant of the condominium unit, the Developer is required to carry out the data discussion at least every 6 (six) months and submit it to Committee as the basis for organizing deliberations.
The formation of Committee is carried out no later than 6 (six) months from the submission of the first condominium unit by Owner of the Condominium unit domiciled in Condominium that are facilitated by the Developer through the holding of Committee formation meetings, inviting all Owners and Tenants.
Invitations to Committee formation meeting must be submitted before the meeting is held, no later than 10 calendar days.
The Committee arrangement involves the Owner and Developer’s representative. However, the Developer’s representatives do not have voting rights in the decision making of Committee. Committee consists of at least the chairperson, secretary, treasurer and 4 (four) members.
Committee’s term of office will end after the election of the P3SRS Management and Supervisor and the report on the results of the deliberations has been submitted in writing to the Housing Agency, and copied to the Mayor.
Formation of P3SRS
General
The formation of P3SRS is organized by the Committee facilitated by the Developer in the form of required accommodation and facilities. The objectives of the establishment of the P3SRS are to determine: (i) the formation of an organizational structure, (ii) the preparation and stipulation of the by-laws, (iii) the preparation and stipulation of tenancy rules, (iv) the selection of P3SRS’ managers and supervisors.
The decision on the formation of organizational structures, preparation and stipulation of Articles of Association/By-Laws (“AD/ART”) and the formulation and stipulation of residential rules are conducted by deliberation to reach consensus. While the decision-making mechanism for the selection of P3SRS’ manager and supervisor are conducted by voting, that is, each Owner only has 1 (one) vote despite having more than 1 (one) Condominium Unit (One Man One Vote).
Implementation of Deliberation
The deliberation is carried out by Committee by inviting all Owners to attend the deliberations and representatives of the Regional Government as observers.
Invitations are submitted no later than 7 days prior to the deliberation, by attaching (i) the draft rules of deliberation, (ii) the draft AD / ART, and (iii) the draft of tenancy rules as already consulted by the Committee with the Housing Agency.
Deliberation Participants
The deliberation participants consist of the Developer or its representative based on a power of attorney with valid resident documents. Individuals who can become representatives of the Owner are (i) husband or wife, (ii) biological parents, (iii) one of the siblings, (iv) one of the children who has grown up and in 1 (one) family card, or (v) one of the managers of the legal entity listed in the deed of establishment, or permanent employee (in the case of the Owner is a legal entity).
When attending the deliberation meeting, participants are required to bring proof of ownership and sign the attendance register. The evidence and signatures are the basis for voting ownership.
In addition to deliberation participants, the Housing Agency, Mayor, RT/RW who are present at the meeting as observers, and have the right to express their opinions, but do not have voting right.
Deleberation Agenda
Deliberation is held to discuss and decide:
- Election of head of deliberation.
- Ratification of the rules of deliberation and schedule of the deliberation.
- Establishment of the organizational structure and description of the duties of the management and duties of the supervisor.
- Endorsement of the P3SRS’ instructor, AD/ART.
- Ratification of the rules of tenancy.
- Approval of the t work program of the managers.
- Selection of manager and supervisor.
- Witness the signing of the integrity and management pact by the appointed managers and supervisors.
Quorum of Deliberation Participants
The deliberation is considered valid if attended by more than 50% of the total Owners. If this is not achieved until the time limit specified in the invitation, then the opening of the deliberation is delayed by a minimum of 30 (thirty) minutes or a maximum of 2 (two) hours. If up to the time limit the Owner present has not fulfilled the quorum, then the Committee invites the Owner no later than 7 (seven) to 30 (thirty) calendar days before the next deliberation. Invitations for delayed deliberations must be submitted no later than 7 calendar days before the deliberation is held.
If the delay yet to reach the quorum, the deliberation is postponed for a minimum of 30 minutes or a maximum of 2×60 minutes and if after the delay the quorum has not been reached, the head of the deliberation forum can carry out deliberation and deliberation may determine a valid decision.
Deliberation Decision Making
Decision making in this meeting is conducted by deliberation in the following matters:
- Election of head of deliberation;
- Ratification of the rules of deliberation and schedule of the deliberation;
- Ratification of the organizational structure and description of the duties of the manager and supervisors;
- Ratification of deed of establishment, AD/ART;
- Approval of the work program of the managers;
- Ratification of rules of tenancy;
- Ratification of elected managers and supervisors;
If deliberation is not reached, then the decision is made based on voting.
Leader gf the Deliberation
The deliberation is led by a chairperson and 2 (two) members.
Ratification of the Rules of Deliberation and Deliberation Schedule
The draft rules and schedule of deliberation are prepared by Committee to be agreed upon in the deliberation, which at least contains:
- stages / procedures for selection;
- voter’s voting right;
- time and place of the election; and
requirements of supervisor and manager.
Establishment of Organizational Structure
The establishment of the P3SRS’ organizational structure is set forth in deliberation through deliberation, which consists of manager and supervisor. The management of P3SRS must be an odd number, which at least consists of the chairperson, secretary, treasurer, and units related to management and tenancy. Whereas the Supervisor must be an odd number of at least 5 (five) people, comprises the chairperson who also serves as a member, a secretary who also serves as a member, and 3 (three) members of the Owner.
Discussion and Stipulation of AD/ART
Discussion of the draft of AD and ART is carried out by deliberation to be ratified. During the discussion, the head of the deliberation can ask the Committee to guide the discussion.
Selection of P3SRS Managers and Supervisors
P3SRS’ manager and supervisor are the Owner of condominium unit that meet the following requirements:
- Indonesian citizens;
- physically and mentally healthy;
- their ID card is in accordance with condominium address;
- not undergoing a criminal status;
- at least 21 years and/or married;
- domiciled in condominium based on proof of legal ownership;
- if the proof of ownership is recorded on behalf of the husband and/or wife who is married, and has more than one condominium unit, then only one of them can be chosen as a manager or supervisor;
- has never served as a manager or supervisor in 2 (two) tenure periods;
- not having status as a manager or supervisor in another condominium;
- there is no working relationship with other managers or supervisors;
The term of manager and supervisor of the P3SRS is the longest for 2 (two) periods.
Membership and Organization
Membership
Only the Owner or Tenant may obtain proxy from the Owner of the condominium unit who can become a member. However, please note that the Owner who is not the tenant of condominium unit cannot occupy positions in the management structure.
Each P3SRS member has voting right related to:
- tenancy interest which includes the determination of rules, and determination of the IPL amount for security, hygiene and social affairs;
- ownership, including joint ownership of joint equipment, joint land and joint facility, ownership of condominium unit, and ownership cost of condominium unit;
- Management, including operational activity, maintenance and reapir of joint equipment, joint land and joint facility, and payment of management cost and fire insurance.
Voting right for tenancy interest is based on the one man one vote concept or only have one vote for each member. While voting right for ownership and management is based on NPP.
The condominium unit buyers are required to administrate their membership, no later than 30 (thirty) days after becoming the Owner.
Organization
The organizational structure of P3SRS is formulated in the deed of establishment, AD/ ART which has been ratified based on a decision of deliberation. The manager of P3SRS consists of at least the chairperson, secretary, treasurer, and unit related to management and tenancy.
The management sector has the duty to do the encouragement and supervision activity of Condominium. The tenancy sector is in charge of carrying out the activity of Tenant development and carrying out the administrative activity of ownership and tenancy.
P3SRS supervisor has the following tasks:
- carry out the supervision and provide recommendation of organizing management and/or management conducted by the manager and/or property manager of Condominium;
- supervise the implementation of tenancy of condominium unit so that the Tenant complies with the provisions stated in the AD/ART, and tenancy rules; and
other functions formulated in AD/ART.
Deed of Establishment, AD/ART
General
The deed of establishment of P3SRS is made by a Notary who is domiciled and operating in the P3SRS area. The deed contains the main points of statement of establishment, organizational structure, management structure and basic provisions of the P3SRS organization.
Rules of Residential and Ownership of Condominium Units
Rules and other regulations regarding tenancy are prepared by the manager in the General Meeting of Members (“RUA”). If there is a violation of residential rules, the Owner and/or Tenant must report that violation so that the manager can give the sanction.
P3SRS is obliged to secure the condominium unit ownership by recording each Owner and/or Tenant and recording each transfer of ownership right over condominium unit or condominium unit tenancy and is entitled to refuse the registration of deed of transfer ownership right over condominium unit or the transfer of tenancy right of condominium unit that are not in accordance with AD/ART.
Recording and Endorsement
The Deed of Establishment, AD/ ART must be registered and ratified by the Head of Housing Agency as evidenced by the registration number known and sent to the Mayor in accordance with the P3SRS’ domicile, submitted by the elected manager signed by the Chairperson and Secretary by attaching the attendance list to the RUA participant, Deed Establishment, AD/ART, copy of AJB and/or copy of Condominium unit SHM/SKBG of selected manager.
Management Change
General
The change in management of P3SRS is conducted through RUA as a result of the termination of the management period, the manager has resigned, dismissed by the RUA, is deceased, and is not qualified as a manager and supervisor.
Recording and Ratification of Management Changes
If there is a change or amendment in management and / or supervisor, it must be recorded and ratified to the Housing Agency with copies to the Mayor in accordance with the P3SRS’ domicile, no later than 14 working days after being approved in RUA by attaching at least: (i) attendance list of RUA’s participants, (ii) minutes of management changes, and (iii) deed of change of management.
Management of Joint Equipment, Joint Facility and Joint Land
General
The developer submits the condominium unit to the Owner in accordance with the provisions in the CSPA between the Developer and the Owner after the condominium unit is equipped with SLF and SHMSRS. In the submission of condominium unit, the Developer must complete the obligation of space utilization to the Regional Government as evidenced by the minutes of delivery of those obligations.
Within a maximum period of 3 months from the formation of the P3SRS and recorded by the Housing Agency, the developer must submit the management of the Joint Facility, Joint Equipment, Joint Land and tenancy to P3SRS conducted before a notary by carrying out a financial audit by a public accountant agreed with the P3SRS’s manager. This submission is supplemented with all equipment and its supporting documents.
The developer is also required to submit technical documents to P3SRS in the form of:
- title of division;
- Deed of separation;
- technical data on construction of Condominium;
- picture built (as built drawing); and
- all licenses.
After P3SRS receives management, then P3SRS must take care the interest of the Owner and Tenant related to joint facility, joint equipment and joint land, and the Developer serves as the Owner of unsold condominium unit.
Condominium Management
General
Condominium management includes operational activity, maintenance and repair of joint equipment, joint facility, joint land and tenancy, which is carried out by the manager formed or appointed by P3SRS. The establishment or appointment of the manager is carried out no later than 3 (three) months after P3SRS is ratified by the Housing Agency.
Operational Activities
The operational activities of Condominium must be carried out periodically in accordance with and guided by the provisions of the operation of building, which at least includes:
- socialization of use of Condominium’s joint equipment, joint facility, joint land and tenancy;
- operation of plumbing equipment, wastewater treatment plants, fire fighting facilities, elevators, disaster prevention and mitigation facilities, mechanical, electrical, electronic, and building equipment inside and outside Condominium building;
- road operations, drainage, sanitation, parking, parks, playgrounds, sports facilities, religious facilities / worship, community hall, evacuation room, lighting; and
implementation of order management and environmental hygiene;
Maintenance Activity
Condominium maintenance activity for the Joint Facility, Joint Equipment, and Joint Land at least includes: (i) cleaning, (ii) tidying, (iii) inspection, and / or (iv) testing. Condominium maintenance is carried out to ensure the fulfillment of safety, security, health, comfort, convenience and reliability, for building and area.
Repair Activity
Repair activity includes repair and/or replace: (i) parts of building, components and building materials, and/or (ii) infrastructure, facilities and public utilities.
Manager of Condominium
General
A property manager is required to be a legal entity registered and obtained business licenses as service providers of management of Condominium and operational management licenses at each location of the Governor of DKI Jakarta.
In conducting the management of Condominium, a property manager can collaborate with other parties as outlined in a written agreement.
P3SRS may form or appoint a property manager. The appointment of property manager is carried out through an open and transparent tender process.
A property manager is also required to make a management report to the manager quarterly, which includes:
- inventory of problems and resolution efforts;
- performance report;
- financial statements; and
report on the operation, repair and maintenance of joint facility, joint equipment and joint land.
Financial Administration
General
P3SRS is responsible for the financial administration of condominium management after the Developer delivers the management to P3SRS which consists of management cost and other legitimate businesses.
Management Cost
The amount of management fees comes from the IPL was determind in the deliberation between the Owner and Tenant in accordance with NPP approved in the RUA. Regarding the cost or management fund details, the Owner and Tenant have the right to obtain the information.
The Condominium management cost component consists of operational cost, repair cost, maintenance cost and parking fees.
The amount of the IPL is calculated based on the NPP multiplied by the total management cost of the approved budget year in RUA. Components of calculating the IPL include managerial, water and electricity wages which are joint cost, raw materials, spare parts, administration, tax and insurance.
Sinking Fund
The amount of sinking fund is calculated based on the total estimated cost needed for quality improvement of Condominium, determined by dividing the estimated cost needed for the NPP for each Condominium unit set at 7% to 10% of IPL per month with adjustments to the value of the amount according to the increase Condominium quality improvement fees. Determination of the amount of sinking fund is made through RUA.
Cost of Condominium unit
The cost of condominium unit is the burden associated with ownership of condominium unit and used separately, in the form of land and building tax of condominium unit and electricity bill, water, telephone and multimedia usage bills.
Utilization of Joint Facility, Joint Equipment, and Joint Land
P3SRS can utilize the joint facility, joint equipment and joint land for the benefit of members, as follows: (i) rental of meeting room, (ii) rental of Base Transceiver Station, (iii) placement of ATM machines, (iv) internet network, (v) installation of advertising media, and (vi) others that do not violate the provisions of the AD/ART.
Receipt obtained from the utilization is managed on conditions:
- It is deposited in specific bank accounts and under the name of P3SRS;
- It is carried out in an orderly, transparent and responsible manner as well as reported in the RUA;
- managed for the common interest; and
may be used for management and/or sinking funds.
Bookkeeping, Account Opening and Reporting
P3SRS has several obligations in bookkeeping, account opening and reporting, as follows:
- post all revenues and expenses of Condominium management in an orderly manner in accordance with general accepted accounting principles with reference to the Indonesian Accounting Standards issued by the Indonesian Accounting Association.
- compile financial report audited by an independent public accountants to be accountable to the members in the RUA, at the end of each year.
- opening an account at one or more banks in the city where the P3SRS is domiciled, which is determined by the manager in the manager meeting.
All financial receipts of are deposited in a bank account registered under the name of P3SRS.
Each P3SRS member has the right to view Condominium’s financial statements online, which must be available no later than 6 months after this Cond Reg is issued. If Condominium’s financial statements online cannot be implemented yet, member may submit a written request to the manager, and the manager submits a reply and written explanation for the petition requested.
Cooperation in Gradual Construction of Condominium y
Construction of Condominium which is planned in one integrated construction system on one plot of land can be carried out gradually, starting from planning to completion no later than 3 years for each of stage of Condominium construction, which is firstly stipulated in the construction plan as outlined in the planning document, as well as the Building Construction Permit (“IMB”) and title of division that have been issued by the Regional Government. The formation of P3SRS at each stage of the construction is carried out in accordance with the provisions of this Condo Reg.
At each stage of construction of Condominium will have the Joint Facility, Joint Equipment and Joint Land which are separated from the other stages of its construction.
The Developer sets the scope and limit of the first stage of Condominium, including Joint Facility, Joint Equipment and Joint Land which will be managed by P3SRS in accordance with the title of division issued by the Provincial Government of DKI Jakarta. The Developer must notify P3SRS of its next planned completion of the construction of Condominium.
The Developer doing the next stage construction is obligated to maintain and ensure order, safety, security and comfort of the Owner and Tenant who live in the previous stage Condominium .
The Developer that builds a Condominium in one area gradually must cooperate in writing with the formed P3SRS to:
- guarantee that the implementation of construction on the next stage of Condominium will not disturb the safety, security, and comfort of existing Owner and Tenant;
- guarantee that P3SRS in Condominium management will not be disturbed by the construction of a Condominium that is currently and will be constructed;
- guarantee the the Developer on the construction of the next stage Condominium;
determine the responsibility for management of the joint equipment between P3SRS and the Developer in the event that the Joint Equipment is planned to be jointly utilized by all Owners and Tenants in all stages of constsruction of Condominium.
Technical Guidance and Management Control of Condominium
Technicsal guidance and control management of Condominium is conducted by the Housing Agency together with the Mayor and involves the relevant Regional Devices for the encouragement on the obligations and prohibitions on the management of Owned Condominium. The technical guidance includes:
- conduct the socialization of laws and regulations;
- provide guideline and standard for implementing P3SRS; and
- conduct guidance, supervision, and consultation with manager of P3SRS .
While control, includes:
- Give warning
- granting administrative sanctions; and
- revocation of the letter of registration and ratification of management by the Agency
In this case, a warning can be given to the Developer if it does not conduct its obligations, such as managing a Condominium in the transition period and not facilitating the formation of P3SRS before the transition period has ended. A warning can also be imposed to manager and/or supervisor who violates the provisions of the laws and regulations.
If the Developer, the manager, and/or the supervisor of P3SRS and a property manager ignores the warning, then a first warning letter will be issued and applied for 7 (seven) days and a second warning letter will be issued if the first warning is ignored.
However, if the second warning is not considered by the parties doing the violation, the Housing Agency will provide an administrative sanctions, as follows:
- revoke the registration and ratification of the managment of P3SRS accompanied with an instruction from Housing Agency to convene Extraordinary General Meeting of Members to be implemented with mediation by regional government;
- provide recommendation to regional apparatus in permit division to revoke the Developer’s business lisence and/or operational lisence of property manager.
Kristina Kristeoni Keintjem
