Archive for category Building
Acquisition Levy of Right of Land and Building
Posted by admin in Building, Right of Land on May 11, 2011
BackgroundAs we all know, earth, water, and natural resources contained therein controlled by the State and used as much as possible for the prosperity of the people (society). Land and buildings that build on it, in addition to fulfill the basic need, is also constitutes as profitable investment equipment. In other words, land and building have economic value. Therefore, it is reasonable that for those who obtained the right of land and the buildings to give some of the economic value that obtained, to the State through tax payments, especially Acquisition Levy of Right of Land and Building (“BPHTB”). BPHTB is now regulated in Law Number 21 of 1997 on Acquisition Levy of Right of Land and Building (“Law No.21/1997”), as amended by Law Number 20 of 2000 on Amendment of Law No.21/1997 (“Law No.20/2000”).
BPHTB
According to Law No.20/2000, it is stated that BPHTB taxes are imposed on the acquisition of rights of land and/or building. The subject of BPHTB is the individual or entity who obtained rights of land and/or building. The object of BPHTB is associated with the obtainment of right of land and/or building. The obtainment of right of land and/or building consists of: Read the rest of this entry »
The Legal Aspect and The Rules of The Right to Build
Background
Nowadays, there are various kind of companies established in Indonesia. In term of construction, these companies require a building located on a land. Therefore, according to Law Number 5 of 1960 on the Principle Provisions of Agrarian, there are several rights over land. One of these rights over land is the right to build which can be defined as the right to establish and own a building on a land. The Government Regulation Number 40 of 1996 develops and improves this right to build. The right to build can be given or imposed on state land, land submitted to the right of management, and land submitted to the right of ownership. The right to build can also be used as collateral for loans pledged with mortgage rights.
Allocation of Right to Build
According to the Article 19 of the Government Regulation Number 40 of 1996 describes that right to build is given to Indonesian citizen and legal entities established under Indonesian law and domiciled in Indonesia. The right to build isn’t given to foreigners and foreign entities, so according to article 39 of the Government Regulation Number 40 of 1996 for foreigners and foreign entities, they only have the right to use. The right to build can be granted for a period of 30 years and can be extended for another 20 years. The right to build is given by a decision of the Minister or by an officer appointed upon the recommendation of the management right holders, and have been registered in the book of land in the land office.
Condominium on the Land with Right to Build over the Land with Right of Management
Posted by admin in Building, Property Law, Right to Manage on March 22, 2011
Background
Article 7 paragraph (1) and (2) of Law Number 16 of 1985 on Condominium, the developer (the “Developer”) may build a condominium over the land with Right of Management (Hak Pengelolaan) (“HPL”). HPL is a right to control, given by the state which the implementation is delegated to its holder. Rights of land that may be granted over the HPL land are Right to Build (Hak Guna Bangunan) (“HGB”) and Right of Use (Hak Pakai) (“HP”). The Developer is obligated to complete the HGB or HP status of the land prior to the initial offer of any property over the land, in accordance with the prevailing laws and regulation. Therefore, the Developer must be aware of the procedure of the obtaining of such rights and other requirements related to HGB and HP over HPL land, which is set out in the Government Regulation Number 40 of 1996 (“GR 40/1996”) and State Minister of Agrarian/Chief of National Land Agency Regulation Number 9 of 1999 on Procedure of the Granting of Rights of Land and Revocation of Right of State Land and Right of Management (“Regulation 9/1999”). Read the rest of this entry »
Legal Aspects of License for the Representative of Foreign Construction Legal Entities in Indonesia
Posted by admin in Building, Construction on March 14, 2011
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.
Foreign entities mean the representative from construction legal entities that conduct its business in Indonesia which will be responsible for all actions taken by construction legal entities.
License
Article 2 of Minister Regulation states that before the Foreign Entities conduct their business in Indoneasia, it is required to obtain the License for the Representative of Foreign Construction Legal Entities in Indonesia (Izin Perwakilan Badan Usaha Jasa Konstruksi Asing) (“License”). Moreover, the License can be obtained after the Foreign Entities receive the classification and qualification in the form of certificate. After the Foreign Entities receive the License, those entities are able to provide their services and able to make an agreement with the third parties, which the agreement must be signed on behalf of the holding company. Moreover, the Foreign Entities are allowed to handle the high risk and/or high technology and/or high cost construction projects through joint operation. Read the rest of this entry »
Legal Aspects of Building According to Law Number 28 of 2002
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 Law not only focuses on the building owner but also the building users and public. As stipulated in the Building Law, building owner means a legal entity, group or association, which is considered as legitimate to become building owner.
The Building Law regulates some matters as follows:
Building Functions
The Building Law states that any building must have the function such as residence, religious, business, social and culture, or special function. The building function will be stated in the Building Construction Permit (“IMB”). In the event there is a change of building function as stated in the IMB, the change must obtain the approval from the Regional Government. Read the rest of this entry »
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