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Construction and Management Support of Condominium

By July 30, 2018 No Comments

Background

At the beginning of 2018, precisely on January 8, the Government of Republic Indonesia has enacted new regulation related to Condominium. That regulation is Minister Regulation of Public Works and Housing No. 01/ PRT/M/2018 on Development and Management Support of Condominium (“Regulation No. 01 /2018”).

The Regulation No. 01/2018 was issued considering the need for further regulation of the government’s responsibility for the construction of public condominium, special condominium, and state-owned condominium as set forth in Article 15 (1) of the Regulation on Law Number 20 of 2011 on Condominium (“Condominium Law”).

Furthermore, Regulation No. 01/ 2018 is addressed to protecting the entire Indonesian Nation by increasing the availability of homes through habitable condominium for low-income people, special needs, and Civil State-owned Apparatus, also to be guidance for the central and local government in the implementation of development and management support of condominium.

SCOPE

The scope of Regulation No. 01/ 2018 is:

  1. Construction support of condominium;
  2. Procedures for granting Construction support of condominium;
  3. Management of Condominium;
  4. Monitoring and Evaluation.

Construction Support of Condominium
Construction support of condominium on this regulation is intended for:

  • public condominium;
  • state-owned condominium;
  • special condominium.

Forms of support :

  • condominium buildings along with public infrastructure (provided for high-rise condominium 5 floors); and
  • furniture.

Subjects who receive the benefits and support :

Recipients of support are ministries / agencies or province or district government, while beneficiaries are target of groups that meet the requirements to inhabit the condominium.
Requirements to get construction support of condominium are :

  • Submission of a proposal addressed to the Minister of Public Works and Housing. An overview of this proposal is about housing needs in the applicant’s territory;
  • The technical requirements include:
    • Location

Location in this section also have to follow certain conditions, such as: (A) in accordance with the RTRW; (B) available access road to the location for the smoothness of construction and utilization of Flat; (C) free from flood and landslide disasters; (D) does not violate the border of buildings, rivers and beaches; (E) available power supply as needed; (F) available supply of drinking water or other sources of clean water as required.

    • LandThis land must meet the following requirements: (a) the land area can access the construction of condominium in accordance with the name of the city plan; (B) the land is not in dispute; (C) soil condition ready to build no land-milling process; (D) the safest hydrological face level from flood resik (peil flood).

Procedures for Granting the Construction  Support

Before the handover of state-owned property (Condominium) is made, several stages have to be passed, such as:

  • Proposal submission

The first stage is a proposal submitted which addressed to the Minister and the validity period of the proposal maximum 2 (two) years since the receipt of the proposal.

  • Regional Consultation

Second stage is a regional consultation, but before regional consultation, there is a regional consultation pre-meeting, the point is to accommodate the proposed location of the condominium construction at the national level as the basis for the preparation of the list of construction locations of condominium by the Ministry of Public Works and Housing.

  • Verification

Third stage is the verification of proposals that has been submitted and over the technical requirements. The verifying party is the verification team assigned by the Director General of Housing Provision.

  • Determination of the recipient of  condominium construction

The fourth stage is a prospective recipient of construction support of condominium that has been verified, submitted to the Minister, since the Minister will determine who will receive the support.

  • Implementation of construction

The fifth stage is the implementation of condominium construction, which is done through several stages, namely: preparation of DED; implementation of construction; and alienation or grant.

  • Handover of state-owned property

The last stage is the handover of state-owned property / condominium accompanied by Certificate of Feasible Function (“SLF”) which is handed over by the Minister to the recipient of condominium support.

Management of Condominium

The management of condominium is carried out on condominium buildings that are state-owned or region-owned property. The condominium is used as condominium which its possession of condominium units (“Sarusun”) is by rent. Management of condominium is performed by manager formed by ministries / agencies or local government.

Monitoring and Evaluation

Monitoring is carried out by the Directorate General of Housing Provision through monitoring activities on the implementation of construction support and management of public condominium, special condominium and state-owned condominium. Subsequently, the Minister of Public Works and Housing will evaluate it to ensure that the construction support of condominium goes according to the plan.


Monica Yohanna
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