Indonesia Real Estate Law – Limitation of Selling Price of Modest Condominium Unit and Individual Income Who Obtains the Modest Condominium Unit

Background

On 31 December 2015, Minister of Finance Republic of Indonesia has issued the Minister of Finance Regulation Number 269/PMK.010/2015 on the Limitation of Selling Price of Modest Condominium Unit and Individual Income Who Obtains the Modest Condominium Unit (“PMK 269/2015”). This regulation revokes the previous regulation namely the Minister of Finance Regulation Number 31/PMK.03/2008 (“PMK 31/2008”).

PMK 269/2015 which became effective on 8 January 2016.

Modest condominium unit is a multi-storey building that was built in an environment used as a shelter and equipped with a bathroom/WC and kitchen, either jointly or separately with the residential units for common use.

On the previous regulation, it is regulated that the selling price of modest condominium unit is a strategic certain taxable goods with the limitation that the selling price for each modest condominium unit cannot be more than Rp 144.000.000,00 (one hundred forty-four million Rupiah) and for an individual with income that is not more than Rp 4.500.000,00 (four million five hundred thousand Rupiah).

Now, through the PMK 269/2015, a limit of selling price of modest condominium unit which acquired through financing, is increased to Rp 250.000.000,00 (two hundred fifty million Rupiah) and for individual having income not more than Rp 7.000.000,00 (seven million Rupiah), subject to the following conditions:

a. For every residential area at least 21 m2 (twenty-one meter squares) and not exceeding 36 m2 (thirty-six meter squares);

b. Its development refers to the Minister Regulation implementing the government affairs in the field of public works and public housing; and

c. The first owned residential unit, used personally as a residence and not transferable in the period in accordance with the provisions of laws and regulations in the area of condominium.

  • If you require further information, please feel free to contact us at query@lekslawyer.com

Susan Saraswati

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Indonesia Real Estate Law – Limitation of Selling Price of Modest Condominium Unit and Individual Income Who Obtains the Modest Condominium Unit
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