2. Related Licenses for Property
Development
• Overview of Property Development in Indonesia;
• Spatial Utilization License;
• Location License for Foreign Investment Company;
• Statement Letter of Urban Planning;
• Title of Division;
• Environmental License;
• Building Construction License;
• Certificate of Feasible Function;
• Building Ownership Evidence;
• Shopping Center Business License.
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3. Overview of Property Development in
Indonesia
Legal Basis
• Law Number 28 of 2002 on Building (Building Law);
• Law Number 1 of 2011 on Housing and Occupancy (Housing Law);
• Law Number 20 of 2011 on Condominium (Condominium Law);
• Law Number 26 of 2007 on Spatial Planning;
• Government Regulation Number 36 of 2005 on Implementing Regulation
of Law Number 28 of 2002 on Building;
• Government Regulation Number 26 of 2008 on National Spatial Planning;
• Government Regulation Number 15 of 2010 on Implementation of Spatial
Planning.
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4. Overview of Property Development in
Indonesia (Cont’d)
• The development of condominium and housing shall comply with the
technical and administrative requirements as determined in Housing Law
and Condominium Law. These requirements conform to the technical and
administrative requirements as regulated in Building Law;
• Based on the provision as regulated in Building Law, a building must be
organized orderly. The development of building should be realized
according to the function, and conforming to the technical and
administrative requirements of building;
• Aside from the technical and administrative requirements as regulated in
Building Law, the implementation of condominium and housing is also
required to comply with the ecological requirements as regulated in
Condominium Law and Housing Law.
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5. Administrative and Technical
Requirements in Building Law
Administrative Requirements in Building Law
• The status of right of land and/or utilization permit from
the land owner/possessor;
• The status of building ownership;
• Building Construction Permit.
Technical Requirements in Building Law
• Building layout requirements, such as the land allocation
requirement and building intensity, building
architecture, and the requirement of environmental
impact control;
• Reliability requirements of building, such as
safety, health, comfort, and easiness, according to
the determined function. www.lekslawyer.com
6. Administrative and Technical
Requirements in Housing Law
Administrative Requirements in Housing Law
• Business license of the developer;
• Location permit;
• Usage of land;
• Rights of land status; and/or
• Building Construction License.
Technical Requirements in Housing Law
• Building structure requirement;
• Requirements of security, safety, health, and comfort which are related to the build
and design, including the adequacy of infrastructure and environment facility.
Ecological Requirements in Housing Law
• The compatibility and equilibrium of the environmental function between the
artificial environment and the natural environment as well as the socio-
cultural, including the nation's cultural values;
• One of the ecological requirements is environmental impact
analysis of housing development.
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7. Administrative and Technical Requirements in
Condominium Law
Administrative Requirements in Condominium Law
• Right of land status; and
• Building Construction License.
Technical Requirements in Condominium Law
• Building layout requirements, such as allocation of
site, as well as the intensity and building architecture;
• Reliability of building, such as the requirements of
safety, health, comfort, and easiness.
Ecological Requirements in Condominium Law
• Environmental impact analysis of the
condominium development. www.lekslawyer.com
8. Land for Property Development
• The certainty of land ownership is a guarantee of legal security
and one of the important aspects in the building
development, including the development of condominium and
housing;
• Every building shall be constructed on the land, which has a
clear ownership status, either it is self-owned by the building
owner or owned by other parties.
• In the condition that the land belongs to another party, the
building can only be constructed through the utilization
permission from the land holder/land owner, in the form of a
written agreement between the land holder/
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land owner with the building owner.
9. Land for Property Development (cont’d)
Land for Housing Development
• The development of single house and row house can be implemented on
the land with:
• Right of Ownership;
• Right to Build, either on the state’s land or on the land with Right of
Management; or
• Right of Use on the state’s land.
Land for Condominium Development
• The development of condominium can be implemented on the land with:
• Right of Ownership;
• Right to Build or Right of Use on the state’s land; and
• Right to Build or Right of Use on the land with Right of Management;
• The utilization of state’s property/local state’s property,
in the form of land for the condominium development,
can be done by lease or utilization cooperation.
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10. Spatial Aspect in Property Development
• Spatial Planning of Regency/City is the basis of the license issuance on the land
location that will be built and as the administration of land;
• The function of buildings should comply with the allocation of land location, which
is stipulated in the Spatial Planning of Regency/City, Detailed Urban Spatial
Planning (Rencana Detail Tata Ruang Kawasan Perkotaan), and/or Building
Layout and Environmental Planning (Rencana Tata Bangunan dan Lingkungan);
• The building function covers the function of residential, religious, business, social
and cultural, and special function.
• The building with the residential function includes the single house, the row
house, condominium, and the temporary house.
• The building with the business function includes office
buildings, commercial, industrial, hotel, tourism and recreation, terminal, and
storage places.
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11. Ecological Aspect in Property
Development
• Ecological aspect is one of the requirements in the development of
condominium and housing. As an important aspect, the purpose of
ecological requirements is to keep the conformity and balance of
environmental function;
• The ecological requirement in accordance with Article 33 paragraph
(4) Indonesia Constitution, which states that the development
process which is conducted by the Indonesian people should be held
based on the principle of sustainable development and
environmental concept;
• Ecological requirement includes the environmental impact analysis
of housing development, and other environmental
permits based on the prevailing laws and regulations.
www.lekslawyer.com
13. Spatial Utilization License
Legal Basis
• Law Number 26 of 2007 on Spatial Planning;
• Government Regulation Number 26 of 2008 on
National Spatial Planning;
• Government Regulation Number 15 of 2010 on
Implementation of Spatial Planning.
www.lekslawyer.com
14. Overview of Spatial Utilization License
• Spatial Utilization License is a permit required for the activity
of spatial utilization, in accordance with the laws and
regulations;
• Every person must have a Spatial Utilization License in its
spatial utilization activity, and implement the provision as
determined in the Spatial Utilization License;
• Spatial Utilization License is the permission given to the
applicant that wants to conduct the spatial utilization in a
region/zone based on the spatial planning;
• Spatial Utilization License is issued by the Local Government;
• The procedure for issuing the Spatial Utilization License is
stipulated by the Government or Local
Government in accordance with their authority;
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15. The Purpose of Spatial Utilization
License
• To ensure the spatial utilization is in accordance with
the spatial plan, zoning regulation, and the minimum
standard service on the field of spatial planning;
• To prevent the negative impact of spatial utilization;
and
• To protect public interest and wider community.
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16. Spatial Utilization License
Related Licenses of Spatial Utilization Licenses
• Location Permit/Spatial Function;
• City Planning (Amplop Ruang), such as Minimum Percentage of Green Building
Coverage (KDRH), Minimum Percentage of Building Coverage (KDB), Minimum
Percentage of Floor Coverage for Buildings (KLB), Building's Line Perimeter
(GSB);
• Spatial quality.
Spatial Utilization License in Indonesia
Several types of Spatial Utilization Licenses in Indonesia are as follows:
• Principle License (Izin Prinsip);
• Location License (Izin Lokasi);
• Land Utilization License (Izin Penggunaan Pemanfaatan Tanah);
• Building Construction License (Izin Mendirikan Bangunan).
www.lekslawyer.com
17. Types of Spatial Utilization Licenses in
Indonesia
• Principle License (Izin Prinsip)
Principle License is a permit given by the Central
Government/Local Government, which states an activity that can be
operated or allowed in principle. The type of Principle License can
be as Letter of Land Designation Utilization (Surat Penunjukan
Penggunaan Lahan).
• Location License (Izin Lokasi)
Location License is a permit given to the applicant to acquire a
site/location, in order to conduct its activity, and as the basis to
conduct land acquisition. Location License is given to the applicant
based on the Principle License, if the Principle License is required
based on the Local Government’s regulations.
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18. Types of Spatial Utilization Licenses in
Indonesia (Cont’d)
Land Utilization License (Izin Penggunaan
Pemanfaatan Tanah)
Land Utilization License is the basis for building
construction application.
Building Construction License
Building Construction License is the basis of building
construction, in order to the spatial utilization.
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19. • Location License (Izin Lokasi) for Foreign
Investment Company
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20. Location License
Legal Basis
• Law Number 25 of 2007 on Investment (“Investment Law”)
• Regulation of State Minister of Agrarian/Chief of National Land Agency Number 2 of 1999 on
Location License (“Perka BPN No. 2/1999”);
• Regulation of State Minister of Agrarian/Chief of National Land Agency Number 2 of 1993 on
Procedure to Acquire the Location License and Right of Land on Investment Frame (“Perka BPN
No. 2/1993”);
• Regulation of the Chief of National Land Agency Number 2 of 2011 on Guidance of Land Technical
Consideration in the Issuance of Location License, Location Allocation and the Alteration of of
Land Utilization License (“Perka BPN No. 2/2011”).
Legal Basis
• Law Number 25 of 2007 on Investment (“Investment Law”)
• Regulation of State Minister of Agrarian/Chief of National Land Agency Number 2 of 1999 on
Location License (“Perka BPN No. 2/1999”);
• Regulation of State Minister of Agrarian/Chief of National Land Agency Number 2 of 1993 on
Procedure to Acquire the Location License and Right of Land on Investment Frame (“Perka BPN
No. 2/1993”);
• Regulation of the Chief of National Land Agency Number 2 of 2011 on Guidance of Land Technical
Consideration in the Issuance of Location License, Location Allocation and the Alteration of of
Land Utilization License (“Perka BPN No. 2/2011”).
www.lekslawyer.com
21. Overview of Location License
• Each company that obtained an investment license must have
the Location Permit to acquire the land to implement its
investment plan, and it is also applied as a permit to transfer
the right of land, and utilizing of land for the business activity
of its investment;
• The company is a legal entity that obtained the permit to
conduct an investment in Indonesia as regulated in
Investment Law;
• Location License is required only to
the context of investment, as regulated in
Investment Law; www.lekslawyer.com
22. Overview of Location License (Cont’d)
• The land that can be appointed in the Location License is the
land that based on the Spatial Plan is allocated for the
implementation of investment plan of the company, in
accordance with its investment approval (Investment Permit);
• The decision of Location License is signed by the
Regent/Mayor. For Jakarta, it is signed by the Governor;
• The procedure for granting the Location License is regulated
by the Regent/Mayor. For Jakarta, it is regulated by the
Governor;
• The procedure of Location License issuance as regulated in
Perka BPN No. 2/1993 shall prevail before
the Local Government as mentioned above
stipulates its own procedure.
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23. The Purpose of Location License
The purpose of Location License is to direct and control
the companies in the acquisition of land, since the
utilization and development of land should comply with
the applicable spatial plan, and conform to the physical
capacity of the land.
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24. The Limitation of Land Tenure for the Holder of
Location License
• Below is the maximum limit of land tenure in the business field of housing
development by the holder of Location License and other companies in the
same group of company;
• The company (applicant) shall deliver a statement letter in written, clarify
the area of land that is held by its company, and the area of land which is
held by another same group company.
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25. The Reasons Location License are not
Required
The Location License is not required if:
• The land is used as a capital injection (inbreng) from
the shareholders;
• The land is owned by another company, and the land
acquisition is the continuation of partial or whole
investment plan by another company;
• The land will be used to implement the business
industry in the Industrial Area;
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26. The Reasons Location License are Not
Required (Cont’d)
• The land is from the authority or development plan
agency of an area, in accordance with the spatial planning
of its development area;
• The land will be used for business expansion, which has
been operated and the business expansion has obtained a
permit. The land adjacent to the initial business location;
• The land is not more than 25 ha (twenty five hectares) for
agricultural business, or not more than 10.000 m2 (ten
thousand square meters) for non-agricultural
business; or
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27. The Reasons Location License Is Not
Required (Cont’d)
• The land is already owned by the relevant company, on a
condition that the specified land is located according to
the prevailing Spatial Land, allocated for the use of its
investment plan;
• The land that will be used for capital investment plan is
the land that is owned by the company concerned, on a
condition that the lands are located in space location
according to the applicable Spatial Planning (RTRW) for
the use of capital investment plan.
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29. Application of Location Permit
• Location Permit Application Form;
• Attaching data, as follows:
i. Deed of the establishment of Company;
ii. Tax Identification Number (NPWP);
iii. Sketch Drawings/Sketch of the requested land;
iv. Statement letter, stating the ability to give the
compensation and/or to provide a temporary shelter
for the land owner;
v. Description of the Project Plan that will be built;
vi. Approval from the Investment
Coordinating Board (BKPM). www.lekslawyer.com
31. Advice Planning
Legal Basis
• Law Number 26 of 2007 on Spatial Planning;
• Government Regulation Number 26 of 2008 on
National Spatial Planning;
• Government Regulation Number 15 of 2010 on
Implementation of Spatial Planning.
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32. Overview of Advice Planning
• Local Government shall provide the Advice Planning
for the location concerned, to anyone who will apply
for a Building Construction License;
• Advice Planning has to be obtained before the
applicant submit an application for the Building
Construction License;
• Advice Planning is used as the basic preparation of
building technical plan.
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33. Overview of Advice Planning (Cont’d)
• Advice Planning is the applicable rule for the location
concerned, contains the following matters:
a. The function of building that can be built on the location
concerned;
b. The maximum allowance of height of the building;
c. The allowance number of floor/building layers which under the
land surface and the Basement Site Ratio (KTB);
d. Border line and the minimum clearance of building that is
allowed;
e. The maximum Building Coverage Ratio (KDB) allowed;
f. The maximum Floor Coverage Ratio (KLB) allowed;
g. The minimum Green Coverage Ratio (KDH) required;
h. The maximum Basement Site Ratio (KTB) allowed;
and The utility city system.
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34. • Utilization and Function Plan
License
for Condominium Development
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35. Utilization and Function Plan License
Legal Basis
• Law Number 20 of 2011 on Condominium;
• Government Regulation Number 4 of 1988 on
Condominium;
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36. Overview of Utilization and Function
Plan License
• The development of condominium and its
environment shall comply with the Utilization and
Function Plan;
• The Utilization and Function Plan needs to obtain a
permission from the Regent/Mayor. And for
Jakarta, the permission for the Utilization and
Function Plan is granted by the Governor.
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37. Utilization and Function Plan Application of
Utilization and Function Plan License
• The application of Utilization and Function Plan License is submitted by the
developer to the Local Government;
• The application file with attachments as follows:
a. Certificate of right of land;
b. Advice Planning;
c. Site plan drawings;
1) architecture drawing, contains (i) blueprint, (ii) view, (iii) plot of
condominium designating a clear vertical and horizontal boundaries of the
condominium;
2) Cutting drawing (structure plan drawings) and its calculation;
3) Drawing plan which shows the designation of common equipment, common
facility, and common land; and
4) Utility and installation drawing with its equipments.
• If the condominium is built on the leased land (utilization of state’ property/local
state’s property or wakaf land), the applicant needs to attach
the agreement.
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38. • Title of Division (Pertelaan)
for Condominium Development
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39. Title of Divisions
Legal Basis
• Law Number 20 of 2011 on Condominium;
• Government Regulation Number 4 of 1988 on
Condominium;
• Regulation of the Chief of National Land Agency
Number 2 of 1989 on Form and Registration
Procedure of the Registration of Deed of Separation
of the Condominium.
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40. Overview of Title of Divisions
• Title of Division, means boundaries designation for
the condominium, common facility, common
equipment and common land with the Proportional
Comparative Value (NPP), in the form of picture and
description;
• The developer shall request an approval of Title of
Division from the Local Government after obtaining
the Function and Utilization Plan License;
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41. Overview of Title of Divisions (Cont’d)
• The developer shall make a Deed of Separation (Akta
Pemisahan) for the concerned condominium
accompanied by the Title of Division, which has been
legalized by the Local Government. The developer must
request a legalization of the Deed of Separation to the
Local Government;
• After the Deed of Separation has been legalized by the
Local Government, the Developer must register the Deed
of Separation to the local Land Office. The Deed of
Separation is used as the basis on the issuance of
Certificate of Right of Ownership over
Condominium Unit.
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43. Environmental License
Legal Basis
• Law Number 32 of 2009 on Protection and Management of Living
Environment;
• Government Regulation Number 27 of 2009 on Environmental Impact
Analysis;
• Government Regulation Number 27 of 2012 on Environmental License;
• Minister of Living Environment Regulation Number 5 of 2012 on Type of
Business Plan and/or Activities that Should Have The Environmental
Impact Analysis;
• Minister of Living Environment Regulation No. 13 of 2010 on The Effort
on Management and Monitoring of Living Environment (UKL-UPL) and
The Eligibility Statement Letter on
Management and Monitoring of Living Environment
(“Minister of Living Regulation No. 13/2010”).
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44. Overview of Environmental License
Environmental license is a permit that is given to
anyone who is doing a business and/or activities that is
required to have the Analysis of Environmental Impact
(“AMDAL”) or Environment Management Efforts-
Environment Monitoring Efforts (“UKL-UPL”) in
relation to environment protection and management as a
prerequisite before obtaining business license and/ or
activities.
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45. The Purpose of Environmental License
• Providing environment protection and increasing the
sustainable efforts to control the business and/or
activities that have a negative impact to the
environment;
• Providing explanation of the procedures, mechanisms
and coordination between the government agencies to
conduct the implementation of business and/or
activities license, and to provide the legal certainty in
the business and/or activities.
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46. Business Fields that Require
Environmental License
Any business and/or activities that must have AMDAL
(Environmental Impact Analysis) or UKL-UPL
(Management and Monitoring of Living
Environment), must have Environmental License;
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48. Business Fields that Require UKL-UPL
• Any business and/or activity which does not fall
within the criteria that requires an AMDAL is
required to have UKL-UPL;
• Type of business and/or activities that should have
the UKL-UPL is stipulated by the governor or
regent/mayor based on screening (penapisan) result.
Screening is conducted in accordance with screening
guidelines as contained in Annex I of Minister of
Living Regulation No. 13/2010.
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49. Steps to Obtain Environmental License
1. The preparation of AMDAL or UKL-UPL;
2. The assessment of AMDAL or UKL-UPL;
3. The submission for Environmental License is conducted
at the same time with the submission of the
environmental impact analysis (“ANDAL”) and
assessment for Environment Management Plan -
Environment Monitoring Plan (“RKL-RPL”) or the
examination of UKL-UPL;
4. The issuance of Environmental License is conducted at
the same time with the issuance of Eligibility Decision
of Living Environmental or
UKP-UPL Recommendation.
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50. Application Document for
Environmental License
• Environmental License application has to contain the
following documents:
a. AMDAL document or UKL-UPL’s form;
b. Business and/or activities establishment document (deed of
establishment of the company. For the government, such as
legal basis on the establishment of government institution);
c. Business profile and/or activities, such as:
i. The name of person in charge in the business and/or
activities;
ii. Business and/or activities name;
iii.Business and/or activities address;
iv. Business and/or activities field; and
v. Business and/or activities location.
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52. Building Construction License
Legal Basis
• Law Number 28 of 2002 on Building;
• Government Regulation Number 36 of 2005 on Implementing
Regulation of Law Number 28 of 2002 on Building;
• State Minister of Public Works Regulation Number 29/PRT/M/2006
on Technical Requirement Guideline of Building Permit;
• State Minister of Public Works Regulation Number 24/PRT/M/2007
on Technical Requirement Guideline of Building;
• Regulation of Minister of Home Affair Number 32
of 2010 on Guidance of Granting Building Construction License.
www.lekslawyer.com
53. Overview of Building Construction
License
• Building Construction License is a license given by
the Local Government to the applicant for new
building
construction, rehabilitation/renovation, and/or
restoration in order to preserve the building
sustainability in accordance to the prevailing
administrative and technical requirements;
• Any person that wants to conduct a building
construction shall have a Building Construction
License; www.lekslawyer.com
54. Overview of Building Construction
License (Cont’d)
• Building Construction License is a proof from the
Local Government that the building’s owner can
construct a building according to the predetermined
function and based on the technical plan of building
which is approved by the Local Government;
• The building permit is issued by the Local
Government, except for the building with special
function of building is issued by the Central
Government.
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55. Application of Building Construction
License (Cont’d)
• The application of Building Construction License is
submitted by the applicant to the Local Government;
• The applicant files an application by attaching the
administrative and technical documents;
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58. Certificate of Feasible Function
Legal Basis
• Law Number 28 of 2002 on Building (Building Law);
• Government Regulation Number 36 of 2005 on
Implementing Regulation of Law Number 28 of 2002 on
Building (GR No. 36/2005);
• Regulation of Minister of Public Works Number
25/PRT/M/2007 on Technical Guidelines
of the Certificate of Feasible Function
Technical. www.lekslawyer.com
59. Overview of Certificate of Feasible
Function
• The developer shall submit an application of the Certificate of
Feasible Function after finishing a part or all of condominium
development, as long as it is not contrary to Building Construction
License;
• The obligation to have the Certificate of Feasible Function for
condominium is according to the Building Law and GR No.
36/2006;
• The application of Certificate of Feasible Function submitted to
Regent/Mayor, and for Jakarta the application submitted to the
Governor;
• The Local Government issues the Certificate of Feasible Function
after conducting the inspection of the
feasibility in the condominium according
to the laws and regulations;
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61. Evidence of Building Ownership
Legal Basis
• Law Number 28 of 2002 on Buildings (Building
Law);
• Government Regulation Number 36 of 2005 on
Implemented Regulation of Law Number 28 of 2002
on Buildings (GR No. 36/2005);
• Regulation of Jakarta Special Capital City Region
Number 7 of 2010 on Building in the
Special Capital City Region of Jakarta
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62. Overview of Building Ownership
• Every person or legal entities can own a building or
part of a building (principle of horizontal separation);
• The building ownership is proven by the Evidence of
Building Ownership which is issued by the Local
Government, based on the result of data collection of
the building;
• Except for the building with a special function, the
Evidence of Building Ownership is issued by the
Central Government.
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63. Transfer of Building Ownership
• The ownership of the building can be transferred to
the other party;
• If the land where the building is located is owned by
another party, then the transfer should be approved by
the owner of the land.
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64. Implementing Regulation of Evidence of
Building Ownership
• Further regulation concerning the Evidence of
Building Ownership, will be regulated in the
President Regulation;
• Up to this time, the President Regulation has not been
issued yet.
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65. Overview of Evidence of Building
Ownership in Jakarta
• Evidence of Building Ownership is a statement letter
given by the Local Government to the building owner
as the evidence of building ownership, the building
construction stage has completed according to the
Building Construction License and the building has a
Certificate of Feasible Function according to the
prevailing administrative and technical requirements.
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66. Overview of Evidence of Building
Ownership in Jakarta (Cont’d)
• Evidence of Building Ownership is issued for a
building that owns a Building Contruction License
and Certificate of Feasible Function.
• In one building, it is possible to give more than one
of Evidence of Building Ownership;
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67. Application of Evidence of Building
Ownership
• The application of the Evidence of Building
Ownership is submitted in writing to the Head of
Construction Supervision and Enforcement Agency
by attaching the required documents;
• The Evidence of Building Ownership is issued in the
time period of 30 (thirty) days after all the
requirements are being completed.
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68. Application of Evidence of Building
Ownership (Cont’d)
To apply for Evidence of Building Ownership, the following
documents are required:
• The contract and/or approval from the parties in the form of
written agreement;
• The coherent between the facts of building with the data in the
right of land status;
• The coherent between the facts of building with the data in the
Building Construction License and/or previous evidence of
building ownership;
• The ownership of Building Construction
License. www.lekslawyer.com
69. • Shopping Center Business License
(Izin Usaha Pusat Perbelanjaan)
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70. Shopping Center Business License
Legal Basis
• President Regulation Number 112 of 2007 on
Organization and Directions of Traditional
Markets, Shopping Centers and Modern Stores;
• Regulation of the Minister of Trade Number 53/M-
DAG/PER/12/2008 on the Guidelines for Structuring
and Development of Traditional Markets, Shopping
Centers and Modern Market.
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71. Overview of Shopping Center Business
License
• Shopping Center Business License means a license to
engage in the management business of shopping
center that is issued by the Local Government;
• Shopping Center Business License is a license for
stores, malls, plazas and trade centers;
• Shopping Center Business License is issued by
Regent/Mayor, and for Jakarta is issued by the
Governor.
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72. Application of Shopping Center Business
License
The application of Shopping Center Business License is submitted by
attaching the following documents:
• Principle License from the Regent/Mayor, and for Jakarta the
Principle License from the Governor;
• Feasibility study documents, including the environmental impact
assessment, social-cultural aspects and the recommendation letter
from the authorization officer;
• location license from the Land Office;
• Interference License (HO);
• Building Construction License;
• Article of association and its legalization;
• Partnership plan with small enterprises; and
• Statement to implement the applicable regulations.
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74. Licenses for Property Development in
Jakarta
Legal Basis
• Regulation of Jakarta Special Capital City Region Number 7 of 2010 on
Building in the Special Capital City Region of Jakarta
• Decision of Governor of the Special Capital City Region of Jakarta
Number 76 of 2000 on the Procedures on Obtaining Building Construction
Permit, Building Utilizing Permit, and Building Utilize Feasibility;
• Governor Regulation of the Special Capital City Region of Jakarta Number
85 of 2006 on the Issuance Services of Building Construction
Permit, Decision of Governor of the Special Capital City Region of Jakarta
Number 147 of 2000 on the Delegation of Authority Service of
Determination of City Plan and the Issuance of Preliminary Permit of
Building Construction in the Province to Sub-District Office in
Special Capital Region of Jakarta Province.
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75. Overview of Property Development
Licenses in Jakarta
• The building constructions in Jakarta area can be conducted by
firstly obtaining its permit from the Governor of the Special
City Region of Jakarta in the form of Building Construction
License;
• The application of Building Construction License shall be
made in 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);
• Prior to the issuance of Building Construction License, the
Section of Sub-District Office or Department of Sub-District
Office may issue the Preliminary License
(Izin Pendahuluan).
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76. Overview of Preliminary Licenses on Property
Development
in Jakarta
• Preliminary License is the license which is given to
build, in accordance with to the stages of building
construction activities, while waiting the definitive
Building Construction License.
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77. Overview of Preliminary Licenses on Property
Development
in Jakarta (Cont’d)
• Preliminary License is divided into 4 (four)
parts, such as:
i. Preparation Preliminary License;
ii. Comprehensive Preliminary License;
iii. Comprehensive Structure Preliminary
License, and
iv. Foundation Preliminary License.
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78. Sample of Legal Case
PT X wants to confirm and clarify the completeness of a building licenses for
several building hospitals which is managed by PT X, located in
Jakarta, Tangerang and Surabaya. PT X want to know whether the Preliminary
Licenses for each building hospital is required under the national and local
prevailing laws, such as:
• Preparation Preliminary License (Izin Pendahuluan Persiapan);
• Comprehensive Preliminary License (Izin Pendahuluan Menyeluruh);
• Comprehensive Structure Preliminary License (Izin Pendahuluan Struktur
Menyeluruh); and
• Foundation Preliminary License (Izin Pendahuluan Pondasi).
The verification carried out starting from the issuance of Building
Construction License in the period year of 1977 until period
year of 2006.
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86. Conclusion
Therefore, from the local regulations of three different
regions i.e Jakarta, Surabaya and Tangerang, only
Jakarta has Preliminary Licenses as progressive
licenses to construct building.
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