Several Important Legal Permit for Apartments

 

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By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Strategic Licensing in the Housing Business in Indonesia", "Is the Property Sector in Indonesia Open to Foreign Investment?", you may read also "How To Buy Land In Indonesia?" and on this occasion we will discuss about 'Some Important Legal Permit for Apartments'.

Simply, the development of an apartment includes three activities, namely the (1) purchase or acquisition of land, (2) construction, and (3) property management.[1] Land acquisition means the purchase of land from the community by the developer to then be used as a place to build apartments. Construction is the process of building an apartment unit which will be sold by the developer and then occupied by the owner. Property management, in this case apartments, is a series of treatments for after sales apartment units.

Of the three activities above, Several Important Legal Permissions for Apartments are:[2]

1. Location Permit, is a permit granted to a business actor to obtain the land needed for his business and/or activity and also applies as a permit to transfer rights and to use the land for his business and/or activities.
2. Application for Building Use Rights (HGB), is (as stipulated in the Basic Agrarian Law) the right to construct and own a building on land that is not one's own for a maximum period of 30 years.
3. Land Use Permit (IPPT), is a permit granted to a company/agency/institution based on a location permit/location determination that has been approved by the Regent. Land Utilization Permit is one of the administrative requirements to obtain a Building Permit (IMB).
4. Master Plan or Rencana Induk Tapak (RIT) and City Plan Description or Keterangan Rencana Kota (KRK), is is a space utilization permit, in which case the building to be erected must comply with the City Spatial Detail Plan. City Plan Description or Keterangan Rencana Kota (KRK), is are permits in the form of land designation and use of buildings, intensity of space utilization and other technical requirements imposed by the Regional Government in Certain Locations.
5. Site Plan (Rencana Tapak), is primarily made for projects with a land area of ​​up to 50 hectares according to proof of land ownership. This letter also stipulates that the size of the land area may not exceed the land area stated in the Space Utilization Permit and Location Permit.
6. Environmental Impact Analysis (AMDAL), is is a study of the possible changes in socio-economic aspects and biophysical characteristics of the environment due to an activity plan. 
7. Traffic Impact Analysis (Amdalalin), is a study or study of the traffic impact of a particular activity or business, the results of which will be contained in an "Amdalalin" document or a traffic regulation plan.
8. Environmental Permits, is a permit granted to every person conducting a Business and/or Activity which is required to have an analysis of environmental impacts in the context of environmental protection and management as a prerequisite for obtaining a Business and/or Activity permit.
9. Building Permit (IMB), is a permit granted by the Regional Head (Regent or Mayor) to building owners to build new, modify, expand, reduce, and/or maintain buildings in accordance with applicable administrative and technical requirements.

It should be noted, from several apartment permits as mentioned above, the most important in this context is the Building Permit (IMB). As the title of the article above, it is also necessary to add permits that are directly related to flats/or apartments as regulated in Law no. 20 of 2011 concerning Flats, also Government Regulation No. 13 of 2021 concerning the Implementation of Flats, and others related Law. And if you have any legal issue with this topic, contact us then, feel free in 24 hour, we will be happy to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

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References:

1. "Ini Tahapan Perizinan yang Harus Dipenuhi Pengembang", www.kompas.com., Diakses pada tanggal 27 Agustus 2022, https://properti.kompas.com/read/2018/10/22/190000721/ini-tahapan-perizinan-yang-harus-dipenuhi-pengembang-properti

2. "Strategic Licensing in the Housing Business in Indonesia", www.hukumindo.com., Diakses pada tanggal 27 Agustus 2022, https://www.hukumindo.com/2022/08/strategic-licensing-in-housing-business.html

3. Basic Agrarian Law.