There are provisions as well as regulations for solving the problem of land use and appointment of the land in the DKI Jakarta Region. The DKI Jakarta government realizes this with the SIPPT issuing regulation. The SIPPT is defined as the designation permit of the land use that is granted to the developers for developing the area.
Procedure for Private Parties
The first paragraph provides explanation about the activities of project development that are not only conducted by the DKI Jakarta government in the public interest but also the parties involved in the private sector that can participate in the development of the project in the region of DKI Jakarta. According to Governor Decree No. 41/2001, a party from the private sector is able to be the holder of SIPPT. There is statement in article 1 about SIPPT holder that can be a developer, an agency, a property company, an individual, and or a foundation with SIPPT given by DKI Jakarta government for building physical and commercial structure including office and housing or the application of land right in the region of DKI Jakarta. There is also provision about the procedure for getting the SIPPT that is regulated in the Governor of DKI Jakarta Province Decree Number 11/3/11/1972 number 1972 on the Improvement of Exempt Permit Application Procedures and Appointment/Land Use and Land Acquisition Procedures and objects above it for the Benefit of Office/Private Territory of Jakarta. The applicant will release Exempt Permit and it will be used for granting 75% of the area of land. This way, according to the provisions in the article 19 paragraph 1 Governor Decree No.11/1972, the governor will grant the SIPPT. SIPPT cannot be transferred by the holder to another party after it is obtained.
Obligations of Holder
The administration should be coordinated by the DKI Jakarta Province government for monitoring the obligation of social and public facility of the SIPPT holders. There are some types of obligations that are
applicable to the holder of SIPPT. It includes the establishment as well as delivery of the environmental infrastructure, social, and public facilities. There is also obligation of compliance with the obligation from the SIPPT. It also includes meeting other obligations that is set forth in the documents including SIPPT.
Exception of Obligations
There is SIPPT obligations exception for the land that is owned by the Local DKI Jakarta government managed by the SKPD or Regional Working Corps of UKPD or regional work unit. Exception can also be found for the land with the Governmental Company asset status that does not have cooperation with the third parties. It means that local permission is necessary to be fulfilled during the concerned development execution. There is also another obligation establishes facilities for public or society and also performs the management of environment under the City Plan.
Prohibitions and Sanctions for Holder
There is prohibition for selling, pledging, granting, and or transferring the management regarding the obligations by the holder of SIPPT. There are also sanctions that may be imposed upon the holder SIPPT by the governor if the obligation is not met.