We discuss below the setting up of the condominium management and rights in relation to the condominium unit owners.

The title of the land on which the apartment stands can either be Right to Use or Right to Build. Right to Build is not limited in duration. The Condominium Law contemplates that the underlying land will eventually be transferred by the developer to the strata unit owner association.

In theory, the developer is to surrender the land to the owners association when it is formed.

The Condominium Law requires the establishment of a Apartment Owners Association (Perhimpunan Pemilik dan Penghuni Satuan Rumah Susun or “PPPSRS”). The Condominium Law stipulates that a PPPRS must be established one year after the first transfer of a condominium unit to the owner. This obligation to establish the PPPSRS (P3SRS) is on the condominium owners and the developer is to facilitate its establishment.

P3SRS is a legal entity composed of owners and occupants of apartment units. P3SRS is responsible to the owners and occupants in respect of the common area, shared facilities. The P3SRS levy the IPL pursuant to Law No. 20 of 2011 concerning Flats (Rusun) and Government Regulation No. 4 of 1988 concerning Flats (Rusun).

IPL means apartment management fee. Responsibility is shared among apartment owners based on the size of their apartments. The amount could range from IDR 10,000 per square metre to IDR 80,000 per square metre (in the case of upscale apartments).

P3SRS is prohibited from cutting off electricity or water supply to any unit on ground that the IPL is in arrears. Such action is only permitted if approved by the members at a general meeting.
The most common type of disputes arising from allegations that management of the funds (from the IPL and sinking fund collection) is that the setting of the IPL lacks transparency. The owners feel that the P3SRS lacks accountability on expenditure towards common property maintenance. It was for this reason that apartment owners in several estates refuse to pay IPL. And such refusal led to the P3SRS cutting off electricity and water in the past. This is now prohibited with the passing of Governor Regulation Number 133 Year 2019 concerning Amendment to Pergub Number 132 Year 2018 concerning Management of Owned Apartment Management, which has just been issued by the DKI Provincial Government. However, this is still open to the P3SR to cut off the electricity or water supply to a specific unit if there is approval from the general body of owners.