Posts Tagged Government Regulation

Revocation of Lands Rights

Background

In order to implement the provision of the granting of rights of land in accordance with Law Number 5 of 1960 on Agrarian Principle Regulation (“Law No.5/1960”) and Government Regulation Number 40 of 1996 on Right to Cultivate, Right to Build and Right of Use of Land, the procedure of the revocation of such land rights must also be regulated, which is already set forth in Regulation of Agrarian State Minister/Head of National Land Agency Number 9 of 1999 on Procedure of Granting And Revocation of Rights of State Land and Right of Management (“Regulation”).

 

Revocation of Rights of Land

Point 1 letter 14 of Regulation states that revocation of land rights means the revocation of the decree of the granting of land rights or land rights certificate (“Granting Decree”) due to the administrative legal error in the issuance of such Granting Decree or in order to implement the court decision which has obtained the permanent legal power. Read the rest of this entry »

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Administrative and Technical Requirements of the Construction of Strata Title

Background

In densely populated urban areas, where available land is very limited, it is necessary to develop residential in the form of strata title to provide a complete, balanced, and harmony with its surroundings. Strata title is a storey building built on an area, which is divided into parts that are functionally structured horizontally and vertically and consists of units that can be owned individually and that can be used separately, particularly for residence, which is completed with common equipment, common facility, and common land. The construction of strata title shall fulfill the administrative and technical requirements as stipulated in Government Regulation Number 4 of 1988 (“GR No.4/1988”) jo. Law Number 16 of 1985 (“Law No. 16/1985”). The construction of strata title has to comply with more severe administrative and technical requirements, since strata title has special shape and circumstances which are different from the ordinary horizontal housing.

 

Administrative Requirements

The construction of strata title and its environment has to be built and implemented based on the license given by the related local government in accordance with its designation (administrative requirements). Referring to the explanation of Article 6 of Law No.16/1985, administrative requirements of the construction of strata title are the requirements of (i) developer’sbusiness licnese, (ii) location permit and/or its designation, and (iii) building permit. Those licenses are applied by the developer to the related local government by attaching the requirements as set forth in Article 30 of GR No. 4/1988, as follows: Read the rest of this entry »

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Legal Aspect on Term of Right of Use Over State Land and Land Under Right of Ownership

According to Article 41 of Law Number 5 of 1960 on the Basic Principles of Land (“Land Law”), Right of Use means right to use and collect the production over State Land or land which is owned by private parties. As stipulated in Article 42 of Land Law, Right of Use can be granted to:

  1. Indonesian citizens;
  2. foreigners domiciled in Indonesia;
  3. Indonesian companies established based on Indonesian law and domiciled in Indonesia; and
  4. foreign companies having its representative office in Indonesia.

 

Further, as stipulated in Government Regulation Number 40 of 1996 on Right of Cultivation, Right to Build, and Right of Use Over Land (“Government Regulation 40”), Right of Use can be granted over a land with land status of:

  1. state land;
  2. land under Right of Management (hak pengelolaan);
  3. land under Right of Ownership (hak milik).

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Guidance on Conditional Sale and Purchase Agreement of House According to the Decree of State Minister Public Housing Affairs Number 09/KTPS/M/1995

Indonesia’s high population growth rate has increased the housing needs of the people. Urgent needs of the available units of house often results on the sale and purchase of the house which is still in the planning process and it is giving rise to the sale and purchase through reservation. Therefore, as a result of it, the sale and purchase of house is conducted through a preliminary sale and purchase arrangement. The preliminary sale and purchase of house will be set out in the Conditional Sale and Purchase Agreement (“PPJB”). The PPJB shall be made in accordance with the guidelines which set out in the Minister of Housing Decree Number 09 Year 1995 on Guidance of Conditional Sale and Purchase of House (“Kepmenpera No.09/1995“) along with its example. Along with the enactment of the Kepmenpera No.09/1995, it is expected that the interests of the buyer and the seller will be secured. Read the rest of this entry »

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Legal Aspects for Industrial Area Based on Government Regulation Number 24 of 2009

Basically, the development for industrial area is required to support the economy in a country. If one country has well maintained industrial areas, it can be the supporting factor for the investor to make their investment in those areas.

It is stated in Article 1 of Government Regulation Number 24 of 2009 concerning Industrial Area (“Industrial Area Regulation”), industrial area means the center of industrial activities which is already completed with the facilities and infrastructures which will be managed by the industrial area license holder or industrial company (“Company”). Read the rest of this entry »

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