Member Article

On 14 September 2018 the Ministry of Public Works and Public Housing of the Republic of Indonesia introduced Regulation of the Ministry of Public Works and Public Housing of the Republic of Indonesia Number 23/PRT/M/2018 on the Owners and Occupants’ Association of Multistoried Dwelling Units (“Regulation 23”).

Regulation 23 is one of the further implementing regulations of Law Number 20 of 2011 on Multistoried Dwellings (“Law 20”) and revokes older regulations on the similar subject which are still based on Law No. 16 of 1985 on Multistoried Dwellings, which has been revoked by Law 20. Regulation 23 covers (i) the establishment of the owners and occupants’ association of multistoried dwelling units (PPPSRS – perhimpunan pemilik dan penghuni satuan rumah susun), (ii) its members and organization, (iii) deed of incorporation, articles of association, bylaw and occupancy regulations, (iv) management, and (v) cooperation during the stages of development.

Establishment of PPPSRS

Regulation 23 requires that the developer to facilitate the establishment of PPRS, at the latest one year as of the first handover of the unit to the owner. During the preparation stage, the developer is required to carry out public awareness sessions to the occupants directly and through media since the units are being marketed to prospective buyer and before the establishment of the PPPSRS. The developer is then required to facilitate the owners to form a consultative meeting organizer (panitia musyawarah), which comprises representatives of the owners and representatives of the developer. Panitia musyawarah will then carry out the consultative meeting to establish the organizational structure, prepare the articles of association and the bylaw, elect the managers (pengurus) of the PPPSRS and elect the supervisors of the PPPSRS.

Membership and organizational structure

Members of a PPPSRS are the owners or occupants who obtained a power of attorney from an owner. A member of a PPPSRS has the voting right to determine matters relating to the occupancy, ownership and management. These would cover the establishment of the house rules and charges for security, cleaning and social matters, ownership of the common goods, areas and land (“Common Properties”) and costs for the ownership of the units, and operation and maintenance of the Common Properties and payment for the management fee.

Read more about the coverage of Regulation 23 in our latest advisory.