Article 1 Paragraph 7 of Government Regulation of Republic Indonesia on Condominium (“GR 4/1988”) explains the definition of Proportional Comparison Value, which is number showing comparison between condominium units toward the right upon the common facilities, common equipment, and common land.
Proportional Comparison Value may be calculated by using 2 (two) ways, which are:
1. Based on the related amount or value of condominium units towards the total amount of building area;
2. The comprehensive value of condominium at the first time when the developer calculates the total construction costs to determine its selling price.
The elucidation in the Article above states that
Proportional Comparison Value from condominium units is calculated when the time developer calculates the total development cost. The price of each unit condominium towards the price of common facilities, common equipment, and common land at the time of calculation of total development cost are used as the basis of Proportional Comparison Value. The Proportional Comparison Value is used as a basis for conducting the separation and the issuance of “Certificate of Condominium Units”, and also as a basis for determining rights and obligations of ownership and management of common facilities, common equipment, and common land.
Sofie Widyana P.
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