According to the Law of Republic of Indonesia Number 20 of 2011 of Condominium (“Law No.20/2011”), Condominium is highrise building built in an environment divided into parts and structured functionally, either horizontally or vertically, and the respective units can be owned and used separately, especially for residence including with common section (bagian bersama), common object (benda bersama), and common land (tanah bersama).
Based on the definition as mentioned above, Condominium consists of common parts which is owned together by the residents of the condominium. The common ownership (kepemilikan bersama) between the residents may cause friction or even a conflict, if there is no regulation that regulates about the rules of procedure in condominium (“House Rule”).
The House Rule of condominium is regulated on Government Regulation Number 4 of 1988 on Condominium (“PP No.4/1988”). Based on Article 71 and Article 72 of PP No. 4/1988, it is regulated that the Article of Association and bylaws of the Residence Association (“AD/ART”) is made by the manager who is appointed for the first time by the general meeting of Residence Association. The House Rule is stipulated in the AD/ART as mentioned above. According to Article 60 of PP No. 4/1998, the House Rule is made based on:
- Law of Republic of Indonesia Concerning Condominium including with its implementing regulations;
- Another related regulations of law;
- The Condominium Management interest in accordance with the technical provisions stipulated in PP No. 4/1988 and Minister of Public Works Regulation;
- The residents interest in relation of rights guarantee, special needs, security, and the freedom in accordance with the applicable regulations of law;
The aforementioned House Rule that have been stipulated in AD/ART must be complied by the residence of the condominium, as regulated in Article 61 paragraph (2) letter a of PP No. 4/1988, which stated that:
“Any resident shall comply and implementing the rules of procedure of condominium and its environment in accordance with Article of Association and Bylaws.”
According to the Article 77 paragraph (1) of PP No. 4/1988, for any violation to the Article 61 paragraph (2) of PP No. 4/1988, which stated that every residents shall comply and implement the condominium’s rules of procedure as regulated in AD/ART of Condominium Resident, can be imposed with criminal sanction of imprisonment for up to 1 (one) year and/or penalty in the amount of, at most, Rp.1.000.000,- (one million Rupiah).