In a strata title concept, there is unit of strata title that can be owned separately and also jointly common equipment, common facility, and common land in line with the calculation of the proportional comparative value. That is why there should be a regulation on utilization and management by Tenant Association (Perhimpunan Penghuni) as a legal entity that will be responsible to manage the shared interest of owners and strata title tenants.
Tenant association is regulated in Articles 19 Law No. 16 of 1985 on Condominium (the ”Law of Condominium”). Tenant Association has a legal capacity as a legal entity under its Article of Association and Bylaws. According to Article 54 Government Regulation No. 4 of 1988 (“GR No. 4 of 1988”), Tenant Association can act for and on behalf of the strata title holders, externally and internally, for creating an orderly and peaceful environment within the condominium building. In other words, Tenant Association is similar to neighborhood association management (RT/RW) which can be used as a place to accommodate tenants’ aspirations and who is entitled to manage the condominium properly so that every facilities can function nicely for the tenants’ interest.
The establishment of Condominium Tenant Association has been regulated in Law of Condominium and GR No. 4 of 1988. Article 54 paragraph (1) GR No. 4 of 1988 state as follows:
Tenants in a condominium environment both for residential, as well as commercial, are obligated to establish Tenant Association for organizing and managing shared interest in relation to ownership, occupancy, and management.
Considering the importance of Tenant Association status, and to facilitate the establishment of Tenant Association, State Minister of Public Housing (Menteri Negara Perumahan Rakyat) as the Chairman of the Board of Policy and Control of Housing Development and National Residence (Ketua Badan Kebijaksanaan dan Pengendalian Pembangunan Perumahan dan Pemukiman Nasional) issued a decree No. 6/KPTS/BKP4N/1995, on the Guidelines for the Formation of Deed of Establishment, Articles of Association, and Bylaws of Tenant Association.
The main tasks of Tenant Association according to Article 59 of GR No. 4 of 1988 are:
- To legalize Article of Association which is compiled by the Board in the General Meeting of Tenant Association.
- To develop tenants’ awareness towards a compatible, harmonious, and well-balanced coexistence inside condominium and its environment.
- To supervise the implementation of the regulations as stated in the Article of Association.
- To execute occupancy administration tasks.
- To appoint, to form and to supervise the board of management in relation to the management of condominium and its environment.
- To execute bookkeeping and financial administrative separately as the asset of Tenant Association.
- To determine the sanction of violation which has been stipulated in Article of Association and Bylaws.
Tenant Association has a legal status as a legal entity as asset out in Article 19 paragraph (2) of the Law of Condominium. The establishment of Tenant Association is made with a notarial deed where its Article of Association and Bylaws shall be agreed in the General Meeting of Tenant Association. The deed must be legalized by the district regent or mayor (region level 2). Exclusively for DKI Jakarta, the legitimation should be done by the governor of the province (region level 1).
Tenant Association has the right to represent tenant for matters such as rights, obligation, and responsibility of each tenant, of which has been decided and added in the deed, legalized by district regent or governor for DKI Jakarta area. This matter is stipulated in the explanation of GR No. 4 of 1988 Article 54 paragraph (2).
According to Article 55 paragraph (2) GR No. 4 of 1988, member of Tenant Association is:
Legal subject who owns, or use, or rent, or buy-sell or make use of the condominium unit and who hold the position as tenant.
Member of Tenant Association is chosen based on familiarity principle (asas kekeluargaan) by and from other member of Tenant Association, to choose at least a chairman, a secretary, a treasurer (accountant), and a management supervisor (according to Article 57 Government Regulation No. 4 of 1988).