Variety of Apartment Ownership Rights in Indonesia

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By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Jenderal Hoegeng Dan Hoegeng Award", "Punishment For Foreign Nationals Whom Overstay In Indonesia", you may read also "Does Indonesia Implementing Citizenship By Investment?" and on this occasion we will discuss about 'Variety of Apartment Ownership Rights in Indonesia'.

The variety of vertical housing offered by developers in big cities is hard to resist. The various public facilities offered, the easy of payment methods, to the location that is easily accessible from the city center, become a tempting lure for those of you who are looking for a place to live.[1] Apart from being considered as the right solution to address the problem of limited residential land for an increasingly large population, apartments are usually built in strategic locations that make it easier for residents to access their place of work.[2]

What Is Apartment Ownership & It's Legal Basis?

An apartment certificate is a legal document that applies as a person's ownership rights to an apartment. An apartment certificate is a legally valid document as proof of ownership of an apartment unit. So, basically apartment unit owners are required to have a full and original apartment certificate document. Ownership of an apartment certificate can also help and strengthen a person's position in legal issues related to apartment unit ownership and other processes related to buying and selling apartment units. [3] In other words, an apartment certificate is proof of legal ownership of a part of a building so called apartment. 

Ownership rights to apartments are regulated by Law Number: 20 of 2011 concerning Flats. Article 46 paragraph (1) of the Flats Law stipulates that the right of ownership of the apartment unit is the right of ownership to the apartment unit which is individual and separate with joint rights to the shared part of the condominium unit, shared object, and joint land.[4]

Benefits of Apartment Ownership 

Following are some of the benefits of an apartment certificate:[5]

• Become proof of legal ownership for the apartment owner;
• Become a legal document that can be legally accounted for;
• Become one of the main documents for buying and selling apartment units;
• Be legal evidence that distinguishes apartment tenants and apartment owners;
• It is a document that must be shown when renting an apartment to someone else, for reasons of security and agreement.

Of the various benefits as mentioned above, legally it is a proof of ownership. From these various proofs of ownership, then you as the owner can then benefit from it.

Variety of Apartment Ownership Rights in Indonesia

In it's role as legal proof of ownership, apartment certificates generally consist of four types as follows:[6]

1. Certificate of Ownership of Flat Units (SHMSRS)/Hak Guna Bangunan, according to Article 1 point (11) of the Flats Law, the certificate of ownership of the condominium unit (SHMSRS) is proof of ownership of the condominium on land with property rights, building use rights, or use rights on state land, as well as building rights or use rights in on land with management rights. In another words, the certificate of ownership of the condominium unit (SHMSRS) is a right to use a building owned by an individual to one or more apartment units without ownership of land rights. The right to use the building in this condominium has the status of Hak Guna Bangunan, which means that the apartment is built on land owned by an individual or a certain property/developer company. In bureaucratic matters, the certificate of ownership of the condominium unit is generally the same as the certificate of ownership for the landed house. However, there is a difference on the cover of the SHM 'satuan rumah susun' which is pink, while for the regular SHM it is green. SHM Sarusun can also be pledged as loan collateral and is valid for 30 years.
2. Building Ownership Certificate (SKBG), in contrast to SHM 'satuan rumah susun', if an apartment is built on land owned by the state/government or waqf land, then the ownership of the land is with a third party. This means that the certificate received by the apartment unit owner is only a building ownership certificate. The weakness of this type of apartment is that the building can be changed or converted when the land owner reclaims his land rights. So, one day the building could become an apartment, and within a certain period of time it could be rented out to other developers to build a hospital, for example.
3. Land Management Rights (HPL) is Land Management Rights (Hak Pengelolaan Lahan) are rights that contain the authority of a person or company to plan the use of buildings. The use of buildings in this case includes the designation of land for business purposes. Generally, HPL is given by a third party to a developer or certain company that wants to build an apartment. For this reason, land management rights certificates are quite different from apartment certificates in general. Apart from having low power, land management rights are only limited to the word “manage” and not ownership.
4. Strata title, in general, strata title is defined as the potential for vertical and horizontal joint ownership of an apartment building. In another sense, strata title is the right of joint ownership of public space in one building and exclusive right of private space. With this strata title, apartment unit owners can use public space in an apartment such as public facilities, sports facilities, and others with mutually applicable regulations. Conceptually, strata title are separate rights to land, buildings, water, and air in a location. Thus, this creates a stratification between which parts can be accessed privately and publicly and their rules.

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

________________

References:

1. "Prosedur Mengurus Sertifikat Apartemen di Indonesia", www.rumah.com., Diakses pada tanggal 5 Agustus 2022, https://www.rumah.com/panduan-properti/mau-beli-apartemen-begini-prosedur-memperoleh-sertifikat-hak-milik-atas-satuan-rumah-susun-7944

2. "Teliti Sebelum Membeli: Waspadai Alas Hak Apartemen Anda", www.kompasiana.com., Kreator: Septian Nugroho, diakses pada tanggal 5 Agustus 2022, https://www.kompasiana.com/septiannugroho/54f38280745513792b6c78eb/teliti-sebelum-membeli-waspadai-alas-hak-apartemen-anda

3. "Jenis sertifikat apartemen yang perlu diketahui beserta prosedur mengurusnya", www.ekrut.com., Penulis: Algonz D.B. Raharja, Diakses pada tanggal 5 Agustus 2022, https://www.ekrut.com/media/sertifikat-apartemen

4. Ibid.

5. Ibid.

6. Ibid.