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Housing Developers Obligated to Have a Housing Developer Certificate

By November 27, 2018 No Comments

Background

On September 14, 2018, Minister of Public Work and Public Housing issued Minister of Public Work and Public Housing Regulation No. 24/prt.m/2018, concerning the Accreditation and Registration of Housing Developer Associations and Housing Developer Certification and Registration (“Permen PUPR No. 24/2018”). Permen PUPR No. 24/2018 was issued to improve service and protection for the public and consumers, and ensure the availability of housing supplies.

Accreditation and Registration of Housing Developer Association and Housing Developer Certification and Registration

The implementation of Housing Development is carried out by housing developers either individuals or legal entities that have been certified and registered by the government after being Verified and Validated.

Housing Developer Certification

Housing Developer Business can take the form of:

  1. Legal entity in the form of a national or foreign business entity; and
  2. Individual.

Businesses from housing developers in the form of individuals are categorized as business activities with small qualifications. Meanwhile, the business of a housing developer legal entity which is a foreign business entity is categorized as a business activity with medium and / or large qualifications.

Business Requirements for Housing Developers

Housing developers must be a member of a housing developer association and obligated to have a housing developer certificate (“SP2“), which is established and issued by the Director General after verification and validation has been carried out by the Association of Housing Developers accredited by the Government.

If the SP2 applicant is a member of a housing developer association that has not been accredited, the verification and validation process will be carried out by the Accreditation, Registration and Certification Team of the Association of Housing Developers and Housing Developers (“ARSAP4“) for application on central level and Housing Developer Certification and Registration Team (“SRP2“) for application at the Provincial and Regency / City level.

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There are three qualifications for housing developer businesses, namely small, medium and large

Small business qualification requirements, namely:

  1. Having net assets in the form of current assets between Rp. 500,000,000 and up to Rp. 10,000,000.000;
  2. Having 1 person in charge of business and 1 person in charge of technical matters who has a Strata-level diploma (“S1”) in Civil Engineering/Architectural Engineering.

Medium business qualification requirements, namely:

  1. Having net assets in the form of current assets between Rp. 10,000,000,000 and up to Rp. 100,000,000,000;
  2. Having 1 person in charge of business and 1 person in charge of technical with a diploma S1 Civil Engineering / Architecture with experience of at least 5 (five) years.

Large business qualification requirements, namely:

  1. Having net assets in the form of current assets above Rp. 100,000,000,000;
  2. Having 1 person in charge of business and 1 person in charge of technical with a diploma S1 Civil Engineering / Architecture / Planology with experience of at least 7 (seven) years.

Rights and Obligations of Housing Developers

Rights of Housing Developers who have SP2 is implementing housing provision, providing residential areas and managing housing and residential areas. Housing developers with large, medium and small qualifications who have SP2 must make periodic reports about their activities at least once in 1 (one) year and submit it to:

  1. ARSAP4 with copy to the Director General and Association of Housing Developers (Large Qualified Housing Developer);
  2. SRP2 province with a copy to the Head of the provincial office in charge of housing / settlement and housing developer associations (Medium Qualified Housing Developers);
  3. SRP2 district / city team with copies sent to the Head of district / municipal service in charge of housing / settlement and Housing Developer Association (Small Qualified Housing Developer).
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Kenny Purba