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Financial Administration based on Encouragement of the Management of Owned Condominium in DKI Jakarta

By January 29, 2019 No Comments

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:

  1. It is deposited in specific bank accounts and under the name of P3SRS;
  2. It is carried out in an orderly, transparent and responsible manner as well as reported in the RUA;
  3. 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:

  1. 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.
  2. compile financial report audited by an independent public accountants to be accountable to the members in the RUA, at the end of each year.
  3. 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:

  1. 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;
  2. guarantee that P3SRS in Condominium management will not be disturbed by the construction of a Condominium that is currently and will be constructed;
  3. 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:

  1. conduct the socialization of laws and regulations;
  2. provide guideline and standard for implementing P3SRS; and
  3. conduct guidance, supervision, and consultation with manager of P3SRS .

While control, includes:

  1. Give warning
  2. granting administrative sanctions; and
  3. 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:

  1. 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;
  2. provide recommendation to regional apparatus in permit division to revoke the Developer’s business lisence and/or operational lisence of property manager.