General Provisions of Service Charges
The management of condominium shall have the right to obtain service charges for managing the condominium. The service charges are proportionally borne by the owners and tenants. The service charge is calculated based on the real needs of operational, maintenance and repair.
The provisions of service charges for condominium are regulated in the Law Number 11 of 2011, Government Regulation Number 4 of 1988, and Minister of Public Works and Public Houses Regulation Number 23/PRT/M/2018.
Provisions of Service Charges in DKI Jakarta
Service Charges during Transition Period
Other than the above mentioned laws and regulations, the provisions of services charges in DKI Jakarta is also regulated under Governor of DKI Jakarta Regulation Number 132 of 2018, as amended lastly based on Governor of DKI Jakarta Regulation Number 133 of 2019.
During the transition period (period of management by developer, 1 year after the first handover by developer to the condominium unit owner), the service charges for condominium shall be borne by developer and owners of condominium units. The amount of service charges shall be calculated based on Proportional Comparison Value (“NPP”) times total management cost for a year, divided twelve months.
Service Charges after Establishment of Association of Owner and Tenant of Condominium Unit (P3SRS)
The amount of service charges for the condominium is calculated by the real needs of operational, maintenance, and repair costs. The component of service charges is:
- operational costs, consist of fee for building management, electrical and water fees for joint-ownership area, spare parts, administration, tax, and insurance;
- repair costs, consist of costs incurred for repairing and/or replacing parts of condominium building, and/or component of building materials, and/or infrastructures and utilities;
- maintenance costs, consist of costs incurred for maintaining the feasibility of condominium building; and
- parking costs, consist of monthly cost for the management of public parking.
The general meeting of P3SRS is the highest forum to ratify the determination of amount of service charges as calculated by the management of P3SRS. The voting right in the general meeting will be based on NPP. After the amount of service charges has been approved by the general meeting, the management of P3SRS calculates and stipulates the amount service charges that will be borne by owners and tenants according to their NPP. All funds obtained for the management of condominium shall be stored in the certain and specific bank account under the name of P3SRS. The owners and tenant of condominium shall have the right to obtain information and explanation on detail of funds used for managing the condominium from the management of P3SRS.