According to the Regulation issued by State Minister for Public Works Number 28/PRT/M/2006 Year 2006 (“Minister Regulation”), it is allowed for the representative of foreign construction legal entities (“Foreign Entities”) to conduct their business in Indonesia after fulfilling some requirements.
The building has an important part as the place for human being to conduct their daily activities. The regulation on the building is the Law Number 28 of 2002 on Building (the “Building Law”). The knowledge on the Building Law becomes important because the Building...
Background
As the capital city of state of Indonesia, Special Capital Region of Jakarta (“Jakarta”) is a center of economic and trade center in Indonesia, which located in the west island of Java. Furthermore, as the central of government of Indonesia, Jakarta is also occupied by buildings that serve as the center of government offices, residential homes, and places of business. Aside to having been regulated on the laws and regulations on building structure establishment permit, and regulations pursuant to buildings and structures, buildings in the Jakarta area are specifically regulated in the Regulation of Jakarta Special Capital City Region Number 7 of 1991 on Building in the Special Capital City Region of Jakarta (“Regulation of DKI No. 7 of 1991”).
Building Construction Permit
The building constructions in Jakarta area can be conducted by firstly obtaining its permit from the Governor of the Special City Region of Jakarta (“Governor”), in the form of Building Construction Permit (“IMB”). The IMB application shall be made by written form to the Governor and submitted through the Section of Sub-District Office (Seksi Dinas Kecamatan) or Department of Sub-District Office (Suku Dinas Kecamatan). The Governor may refuse the IMB application, if the construction of building (i) is violating or harming the public interest, (ii) would harm the interest of local communities, such as endangering the health or environment harmony, and, (iii) has not perform the written instruction, as the condition of application process. The IMB shall be revoked, if the building construction has not been implemented within a period of 6 (six) months from the issuance of the permit, or in the event of the building construction is not continued, except it is notified by written notice by the permit holder.
Prior to the issuance of IMB, Section of Sub-District Office or Department of Sub-District Office may issue the Preliminary Permit (Izin Pendahuluan). Preliminary Permit is the permit which is given to build, accordance to the stages of building construction activities, while waiting the definitive permit. Preliminary Permit is specifically regulated in the Decision of Governor of the Special Capital City Region of Jakarta Number 76 of 2000 on the Procedures on Obtaining Building Construction Permit, Building Utilizing Permit (Izin Penggunaan Bangunan), and Building Utilize Feasibility (Kelayakan Menggunakan Bangunan), Governor Regulation of the Special Capital City Region of Jakarta Number 85 of 2006 on the Issuance Services of Building Construction Permit, Decision of Governor of the Special Capital City Region of Jakarta Number 147 of 2000 on the Delegation of Authority Service of Determination of City Plan and the Issuance of Preliminary Permit of Building Construction in the Province to Sub-District Office in Special Capital Region of Jakarta Province, as far as on the Issuance of Preliminary Permit on Building Construction.
Preliminary Permit is divided into 4 (four) parts, i.e. Preparation Preliminary Permit (Ijin Pendahuluan Persiapan), Comprehensive Preliminary Permit (Ijin Pendahuluan Menyeluruh), Comprehensive Structure Preliminary Permit (Ijin Pendahuluan Struktur Menyeluruh), and Foundation Preliminary Permit (Ijin Pendahuluan Pondasi).
Building Construction
Each building shall comply with the administrative and technical requirements in accordance with the function of the building. Having specifically regulated in the regional regulation of Jakarta, the technical and administrative requirements of building are also guided by other regulations on building structure, for example, Law Number 28 of 2002 on Building, Regulation of the State Ministerfor Public Works Number 24/PRT/M/2007 on Technical Guidelines for Building Construction Permit, Regulation of the State Minister for Public Works Number 29/PRT/M/2006 on Guidelines of the Technical Requirements of Building Structure, and Regulation of Minister of Home Affairs of Republic of Indonesia Number 32 of 2010 on Guidelines of the Issuance of Building Construction Permit.
The administrative requirements of the building consists of (i) the status of the rights of the land, (ii) the status of building ownership, and (iii) the IMB, while the technical requirements of the building contains, (i) the requirements of building structure, and (ii) the reliability requirements of building. The building construction in Jakarta area should be conducted by contractors and supervised by the Supervisory Director. The Supervisory Director is a person or a group of experts/entities which is charged to supervise the implementation of building construction activities upon the appointment of the building owner, in accordance with theprovision that is stipulated in the building permits. To perform their duties, Supervisory Director should have a work permit and responsible for the implementation of building construction activities.
Furthermore, having already supervised by Supervisory Director, all the construction activities in Jakarta area was also monitored by the Supervision Department of City Development (Dinas Pengawasan Pembangunan Kota). Supervisory Director of a building construction has an obligation to report each result of stage of its construction activities to the Head of Supervision Department of City Development. Each design and construction plan shall comply with the technical requirements, which also considering the security, safety, the suitability of building and environment from the side of architecture, construction, installation and building equipment, including safety on the fire prevention.
Design or building plan shall be made and accountable by the experts that have aduty to designing and planning the building and obtaining a written work permit from the Governor. Plan Drawing and Building Planning consists of (i) architectural drawing plan, and/or (ii) drawing and structural calculation, and/or (iii) drawing and its installation calculation and equipment of building, and/or, (iv) drawing and another calculation which have been fixed. The Expert who had a duty to design and plan the drawing and structure calculation, should had to adjust its drawing and structure calculation, and shall not deviate from the architectural drawing. The building owner is having an obligation to inform the Head of Supervision Department of City Development in case there are replacements of the designer and/or building planning.
Criminal Provisions
The violation of any provisions stipulated in Regulation of DKI No. 7 of 1991 is subject to the imprisonment with maximum 3 (three) months, or fine in amount up to IDR. 50,000 (fifty thousand Rupiah), by or by not seizing or confiscating the equipment, which has been used to commit the violations of the provisions. In addition to the penalties above-mentioned, Governor may determine penalties in order to penalize the violations.
Ivor Ignasio Pasaribu
The interest to live in the condominium tends to increase particularly to people who live in the big cities. According to Article 7 Law Number 16 Year 1985 on Condominium, it is stipulated that the condominium can only be constructed over land of Right to Own (Hak Milik), Right to Build (Hak Guna Bangunan), Right to Use (Hak Pakai) on State Land or Right to Manage (Hak Pengelolaan). In the event the developer is formed as business entity in the form of Limited Liability Company, the possible land title for this legal entity is the Right to Build. According to Decree of State Minister for Public Housing Affairs Number 11/KPTS/1994 on the Guidance on Conditional Sale and Purchase of Condominium (Pedoman Pengikatan Jual Beli Satuan Rumah Susun) states the developer shall obtain the following licenses:
Principle License, means the license which must be owned by a person or legal entity that will utilize the space for large scale business;
Location Permit from Regency or Municipal Land Office, for DKI Jakarta known as License of Land Appointment and Utilization (Surat Izin Penunjukkan dan Penggunaan Tanah / SIPPT). This license is given to a company in order to obtain the land for investment which is also valid as the license in relation to transfer of right, and to utilize the land for investment. This license is issued by the competent authorities for the land utilization in main route or for the land utilization of more than five thousand (5,000) m2. The developer has to obtain SIPPT prior to conducting the building construction;
Building Construction Permit, means the license to construct. The Developer is responsible to obtain this license from the competent authorities. If the building does not have the building construction permit, it will be categorized as illegal building and the competent authorities have the right to seal and demolish it.
After the developer completes the construction process, there are several steps that must be passed by the developer before the Certificate of Right to Own on Condominium (Sertifikat Hak Milik atas Satuan Rumah Susun) unit is issued:
Detail of division (pertelaan), means boundaries designation for the condominium, common facility, common equipment and common land with the proportional comparative value in the form of picture and description. In brief, the process begins with the submission of application through National Land Agency to Governor, and followed by research by related institutions together with Head of National Land Agency. Based on the research report from related institutions, the Ratification Decision will be issued and ratified by the Governor for DKI Jakarta and Regional Government for other regions;
Occupancy Worthiness Permit (Izin Layak Huni) means the license issued by Regional Government after investigating the condominium of which its construction is already finished based on the requirements and issued licenses. In the event these licenses have not been issued but the condominium unit is already sold or occupied, according to Law Number 16 Year 1985 on Condominium, there is criminal sanctions of 1 (one) year maximum or a fine of Rp 1,000,000.00 (one million rupiah) maximum;
Deed of Separation of Condominium, this deed is a proof of the separation of condominium unit which includes common facility, common equipment and common land which is registered to the Land Agency which will be approved by the Governor. This deed is used as the basis to issue the Certificate of Right to Own Condominium Unit. According to Regulation of Head of the National Land Agency Number 2 Year 1989 on Form and Procedure and Registration of Deed of Separation of Condominium, it is stated that the Deed of Separation must be registered by the developer to Land Officer together with the Land Certificate and Occupancy Worthiness Permit;
Issuance of Certificate of Right to Own of Condominium Unit, the basis of certificate issuance is the information provided in deed of separation which already approved by Regional Government. In general, this certificate consists of the copies of book of land of right to own of condominium unit, measurement letter of common land and blueprint of condominium unit which clearly shows the location of condominium unit and its detail of division (pertelaan) on the amount of common facility, common equipment and common land which constitute as an integral and inseparable part.
Furthermore, according to Regulation of Head of the National Land Agency Number 4 Year 1989 on Form and Procedure for Book of Land and Issuance of Certificate of Right to Own of Condominium Unit, after the Certificate of Right to Own of Condominium Unit is issued, the land certificate must be deposited in the Land Office.
Jerry Shalmont
This Agrarian State Minister Regulation explains about the requirements of residences ownership by foreigners, within the frameworks of the implementation of the Government Regulation Number 41 Of 1996 On Residences Ownership by the Foreigners Who Are Domiciled in Indonesia (the “GR No. 41 of 1996”). The Foreigners on GR No. 41 of 1996 are the foreigners who own and maintain the economic interests in Indonesia by implementing an investment to have a residential in Indonesia.
Buildings are made to support people’s need of spaces. Building has many functions such as work space, business place, education place, recreation place and many more. In developing countries, especially for small countries, building is used to maximize the use of spaces.
In Indonesia, building is regulated in the Law No. 28 of 2002 on Building (“Law of Building”). According to Law of Building, the definition of building is a physical form of construction works which integrate with the land it stands on, partly or wholly stands over and/or under ground or water, having a function as a place for people to do their activities, either for residence or place to live, religious activity, business activity, sosial activity, culture or any specific activity.
Construction of building is held with the principle of utility, safety, balance, also the harmony between building with its environment. The regulation for building is intended for:
1. Materializing a functional building and suitable with the construction building order which is harmonious and balance with its environment;
2. Materializing an orderly execution of building that ensures technical reliability in terms of safety, health, comfort, and convenience.
3. Materializing a legal certainty in the execution of bulding.
As for building function, according to Paragraph 1 of Article 5 Law of Building, building functions consist of residential function, religious, business, social and cultural, as well as special function. Paragraph 7 of Article 5 stipulated that one building can have more than one function.
Basically, Law of Building is regulating the requirements of a good and fully functional building. As for the implementing regulation of Law of Building is Government Regulation No. 36 of 2005 on Implementing Regulation of Law No. 28 of 2002 on Building (“GR No.36 of 2005”).
The purpose of GR No. 38 of 2005 is to materialize the implementation of orderly buildings, both administratively and technically, in order to materialize a building that is functional, reliable, which ensures safety, health, comfort, and ease of use, and balance and in harmony with its surroundings.
Some of the provisions in GR No. 38 of 2005 still need guidance and technical standard as the guidance to construct buildings. To do so, Minister of Public Works issued the Minister of Public Works Regulation No. 29/PRT/M/2006 on Guidance on Building’s Technical Conditions (“Minister Regulation”). This regulation includes everyone so that every party, person, legal entity and also government body, in constructing building shall fulfil the technical conditions set out in the Minister Regulation.
Retno Anggraeni