Posts Tagged Building
Legal Aspects of Building According to Law Number 28 of 2002
The building has an important part as the place for human being to conduct their daily activities. The regulation on the building is the Law Number 28 of 2002 on Building (the “Building Law”). The knowledge on the Building Law becomes important because the Building Law not only focuses on the building owner but also the building users and public. As stipulated in the Building Law, building owner means a legal entity, group or association, which is considered as legitimate to become building owner.
The Building Law regulates some matters as follows:
Building Functions
The Building Law states that any building must have the function such as residence, religious, business, social and culture, or special function. The building function will be stated in the Building Construction Permit (“IMB”). In the event there is a change of building function as stated in the IMB, the change must obtain the approval from the Regional Government. Read the rest of this entry »
Building Construction Permit in Jakarta
Background
As the capital city of state of Indonesia, Special Capital Region of Jakarta (“Jakarta”) is a center of economic and trade center in Indonesia, which located in the west island of Java. Furthermore, as the central of government of Indonesia, Jakarta is also occupied by buildings that serve as the center of government offices, residential homes, and places of business. Aside to having been regulated on the laws and regulations on building structure establishment permit, and regulations pursuant to buildings and structures, buildings in the Jakarta area are specifically regulated in the Regulation of Jakarta Special Capital City Region Number 7 of 1991 on Building in the Special Capital City Region of Jakarta (“Regulation of DKI No. 7 of 1991”).
Building Construction Permit
The building constructions in Jakarta area can be conducted by firstly obtaining its permit from the Governor of the Special City Region of Jakarta (“Governor”), in the form of Building Construction Permit (“IMB”). The IMB application shall be made by written form to the Governor and submitted through the Section of Sub-District Office (Seksi Dinas Kecamatan) or Department of Sub-District Office (Suku Dinas Kecamatan). The Governor may refuse the IMB application, if the construction of building (i) is violating or harming the public interest, (ii) would harm the interest of local communities, such as endangering the health or environment harmony, and, (iii) has not perform the written instruction, as the condition of application process. The IMB shall be revoked, if the building construction has not been implemented within a period of 6 (six) months from the issuance of the permit, or in the event of the building construction is not continued, except it is notified by written notice by the permit holder. Read the rest of this entry »
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Legal Aspects of Required Licenses for Development of Condominium
Posted by admin in Strata Title on October 29, 2010
The interest to live in the condominium tends to increase particularly to people who live in the big cities. According to Article 7 Law Number 16 Year 1985 on Condominium, it is stipulated that the condominium can only be constructed over land of Right to Own (Hak Milik), Right to Build (Hak Guna Bangunan), Right to Use (Hak Pakai) on State Land or Right to Manage (Hak Pengelolaan). In the event the developer is formed as business entity in the form of Limited Liability Company, the possible land title for this legal entity is the Right to Build. According to Decree of State Minister for Public Housing Affairs Number 11/KPTS/1994 on the Guidance on Conditional Sale and Purchase of Condominium (Pedoman Pengikatan Jual Beli Satuan Rumah Susun) states the developer shall obtain the following licenses:
- Principle License, means the license which must be owned by a person or legal entity that will utilize the space for large scale business;
- Location Permit from Regency or Municipal Land Office, for DKI Jakarta known as License of Land Appointment and Utilization (Surat Izin Penunjukkan dan Penggunaan Tanah / SIPPT). This license is given to a company in order to obtain the land for investment which is also valid as the license in relation to transfer of right, and to utilize the land for investment. This license is issued by the competent authorities for the land utilization in main route or for the land utilization of more than five thousand (5,000) m2. The developer has to obtain SIPPT prior to conducting the building construction;
- Building Construction Permit, means the license to construct. The Developer is responsible to obtain this license from the competent authorities. If the building does not have the building construction permit, it will be categorized as illegal building and the competent authorities have the right to seal and demolish it.
After the developer completes the construction process, there are several steps that must be passed by the developer before the Certificate of Right to Own on Condominium (Sertifikat Hak Milik atas Satuan Rumah Susun) unit is issued: Read the rest of this entry »
Requirements of Residences Ownership By Foreigners According to The Agrarian State Minister Regulation/Head of National Land Agency Number 7 of 1996
Posted by admin in Foreign Ownership, Summary of Regulations on June 21, 2010
This Agrarian State Minister Regulation explains about the requirements of residences ownership by foreigners, within the frameworks of the implementation of the Government Regulation Number 41 Of 1996 On Residences Ownership by the Foreigners Who Are Domiciled in Indonesia (the “GR No. 41 of 1996”). The Foreigners on GR No. 41 of 1996 are the foreigners who own and maintain the economic interests in Indonesia by implementing an investment to have a residential in Indonesia.
Residential ownership and how to obtain the right of land by the foreigners, are as follows:
- Purchase and build the residence on the Right to Use over a state land or the Right to Use over the Right to Own.
- Purchase the condominium which is built on the Right to Use over a state land.
- Purchase and build the residence on the Right to Own or the Right to Rent of the building which is based on written agreement with the owner of land.
The residence or condominium that can be purchased or built by the foreigners is residences or condominium that is not categorized as simple residences or very simple residences classification.
The acquisition of the right of land and/or residences and the Right to Own of Strata Title unit by the foreigners are carried out in accordance with the procedures according to statutory provisions applicable to the relevant legal actions. While the residences are not used by the foreigners, the residences can be rented by the company in Indonesia based on the agreement between the foreigners and the company.
Foreigners are obliged to release or transfer to the parties that are eligible in accordance with Article 6 paragraph 1 GR No.41 of 1996 when the foreigners or their family members do not use the residence for 12 (twelve) consecutive months.
Legal Aspects of Building in Indonesia
Buildings are made to support people’s need of spaces. Building has many functions such as work space, business place, education place, recreation place and many more. In developing countries, especially for small countries, building is used to maximize the use of spaces.
In Indonesia, building is regulated in the Law No. 28 of 2002 on Building (“Law of Building”). According to Law of Building, the definition of building is a physical form of construction works which integrate with the land it stands on, partly or wholly stands over and/or under ground or water, having a function as a place for people to do their activities, either for residence or place to live, religious activity, business activity, sosial activity, culture or any specific activity.
Construction of building is held with the principle of utility, safety, balance, also the harmony between building with its environment. The regulation for building is intended for: Read the rest of this entry »
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