Association of Owners and Residents of the Apartment

Nowadays, an apartment has become one of the most popular option as residence. Apartments are built all over the cities and hundreds of people live in it. However, not everyone knows the legal aspects of living in an apartment. In this article, there will be explanations concerning the Association of Owners and Residents of the Apartment (“PPPSRS”). PPPSRS is a important entity of an apartment and it has a big role in it.

Establishment of PPPSRS

Establishment of PPPSRS is mandatory in an apartment. The developer of the apartment is obliged to facilitate the forming of PPPSRS at the latest before the transition from the developer to the handover of apartment units to the owner has completed. The aforementioned transition itself shall not exceed the period of one year (since the first handover of apartment unit to the unit owner). After PPPSRS has been formed, the developer gives the management of community objects (benda bersama), community sections (bagian bersama) and community land (tanah bersama) to the PPPSRS.

Member of PPPSRS

PPPSRS members are (i) the owners of apartment unit or (ii) the residents who are granted with the power by the owners of the apartment units.

Duty of PPPSRS

PPPSRS is obliged to manage the interests of the owners and residents in the matter of common object (benda bersama), common sections (bagian bersama) and common land (tanah bersama) and occupancy. In order to undertake its obligations, PPPSRS may form or appoint manager in accordance with the provisions in Articles Of Association and bylaw of the PPPSRS.

Proportional Comparison Value

In the event that the PPPSRS decides matters regarding ownership and management of the apartment, every member has the same right as their proportional comparison value (“NPP”). What is a NPP? It’s the number that shows the comparison between apartment units upon the rights of common objects (benda bersama), common sections (bagian bersama) and common land (tanah bersama), which calculated is based on the value of the related apartment unit compared to the overall value of the apartment itself at the time the developer determined the construction cost of the apartment for the first time in order to determined its selling price. However, in deciding matters regarding the interests of the residential of the apartment, every member of PPPSRS has the right of one vote. It’s not based on NPP.

Control over an apartment unit in a public apartment or commercial apartment can be undertaken through a written agreement made before the authorized official. This written agreement must be registered to the PPPSRS. PPPSRS, in a public and commercial apartment, is the initiator for the improvement of apartment’s quality. The owner of the apartment units can propose for a quality improvement, but it must be proposed through the PPPSRS and it have be approved at least 60% (sixty percent) of the members of the PPPSRS to get the PPPSRS approval. PPPSRS must prioritize the old owners of the apartment unit when quality improvement of an apartment is being conducted, so that the interest of the are secured after the quality improvement is completed.

Theresia Pasaribu

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Association of Owners and Residents of the Apartment
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