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    Workshop - License of Property Development in Indonesia Workshop - License of Property Development in Indonesia Presentation Transcript

    • Licensing of PropertyDevelopment in Indonesia
    • Related Licenses for PropertyDevelopment• 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. www.lekslawyer.com
    • Overview of Property Development inIndonesiaLegal 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. www.lekslawyer.com
    • Overview of Property Development inIndonesia (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. www.lekslawyer.com
    • Administrative and TechnicalRequirements in Building LawAdministrative 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
    • Administrative and TechnicalRequirements in Housing LawAdministrative 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 nations cultural values;• One of the ecological requirements is environmental impact analysis of housing development. www.lekslawyer.com
    • Administrative and Technical Requirements inCondominium LawAdministrative 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
    • 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/ www.lekslawyer.com land owner with the building owner.
    • 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. www.lekslawyer.com
    • 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. www.lekslawyer.com
    • Ecological Aspect in PropertyDevelopment• 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
    • Spatial Utilization License(Izin Pemanfaatan Ruang) www.lekslawyer.com
    • Spatial Utilization LicenseLegal 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
    • 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; www.lekslawyer.com
    • The Purpose of Spatial UtilizationLicense• 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. www.lekslawyer.com
    • 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), Buildings Line Perimeter (GSB); • Spatial quality. Spatial Utilization License in IndonesiaSeveral 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
    • Types of Spatial Utilization Licenses inIndonesia• 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. www.lekslawyer.com
    • Types of Spatial Utilization Licenses inIndonesia (Cont’d)Land Utilization License (Izin PenggunaanPemanfaatan Tanah)Land Utilization License is the basis for buildingconstruction application. Building Construction LicenseBuilding Construction License is the basis of buildingconstruction, in order to the spatial utilization. www.lekslawyer.com
    • • Location License (Izin Lokasi) for Foreign Investment Company www.lekslawyer.com
    • Location LicenseLegal 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
    • 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
    • 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. www.lekslawyer.com
    • The Purpose of Location LicenseThe purpose of Location License is to direct and controlthe companies in the acquisition of land, since theutilization and development of land should comply withthe applicable spatial plan, and conform to the physicalcapacity of the land. www.lekslawyer.com
    • The Limitation of Land Tenure for the Holder ofLocation 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. www.lekslawyer.com
    • The Reasons Location License are notRequiredThe 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; www.lekslawyer.com
    • The Reasons Location License are NotRequired (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 www.lekslawyer.com
    • The Reasons Location License Is NotRequired (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. www.lekslawyer.com
    • Time Period of Location License www.lekslawyer.com
    • 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
    • • Advice Planning www.lekslawyer.com
    • Advice PlanningLegal 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
    • 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. www.lekslawyer.com
    • 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. www.lekslawyer.com
    • • Utilization and Function Plan Licensefor Condominium Development www.lekslawyer.com
    • Utilization and Function Plan LicenseLegal Basis• Law Number 20 of 2011 on Condominium;• Government Regulation Number 4 of 1988 on Condominium; www.lekslawyer.com
    • Overview of Utilization and FunctionPlan 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. www.lekslawyer.com
    • Utilization and Function Plan Application ofUtilization 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. www.lekslawyer.com
    • • Title of Division (Pertelaan)for Condominium Development www.lekslawyer.com
    • Title of DivisionsLegal 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. www.lekslawyer.com
    • 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; www.lekslawyer.com
    • 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. www.lekslawyer.com
    • • Environmental License www.lekslawyer.com
    • Environmental LicenseLegal 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”). www.lekslawyer.com
    • Overview of Environmental LicenseEnvironmental license is a permit that is given toanyone who is doing a business and/or activities that isrequired to have the Analysis of Environmental Impact(“AMDAL”) or Environment Management Efforts-Environment Monitoring Efforts (“UKL-UPL”) inrelation to environment protection and management as aprerequisite before obtaining business license and/ oractivities. www.lekslawyer.com
    • 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. www.lekslawyer.com
    • Business Fields that RequireEnvironmental LicenseAny business and/or activities that must have AMDAL(Environmental Impact Analysis) or UKL-UPL(Management and Monitoring of LivingEnvironment), must have Environmental License; www.lekslawyer.com
    • Business Fields that Require AMDAL www.lekslawyer.com
    • 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. www.lekslawyer.com
    • Steps to Obtain Environmental License1. 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. www.lekslawyer.com
    • Application Document forEnvironmental 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. www.lekslawyer.com
    • • Building Construction License www.lekslawyer.com
    • Building Construction LicenseLegal 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
    • Overview of Building ConstructionLicense• 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
    • Overview of Building ConstructionLicense (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. www.lekslawyer.com
    • Application of Building ConstructionLicense (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; www.lekslawyer.com
    • Application of Building ConstructionLicense (Cont’d) www.lekslawyer.com
    • • Certificate of Feasible Function www.lekslawyer.com
    • Certificate of Feasible FunctionLegal 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
    • Overview of Certificate of FeasibleFunction• 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; www.lekslawyer.com
    • • Evidence of Building Ownership www.lekslawyer.com
    • Evidence of Building OwnershipLegal 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 www.lekslawyer.com
    • 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. www.lekslawyer.com
    • 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. www.lekslawyer.com
    • Implementing Regulation of Evidence ofBuilding 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. www.lekslawyer.com
    • Overview of Evidence of BuildingOwnership 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. www.lekslawyer.com
    • Overview of Evidence of BuildingOwnership 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; www.lekslawyer.com
    • Application of Evidence of BuildingOwnership• 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. www.lekslawyer.com
    • Application of Evidence of BuildingOwnership (Cont’d)To apply for Evidence of Building Ownership, the followingdocuments 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
    • • Shopping Center Business License (Izin Usaha Pusat Perbelanjaan) www.lekslawyer.com
    • Shopping Center Business LicenseLegal 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. www.lekslawyer.com
    • Overview of Shopping Center BusinessLicense• 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. www.lekslawyer.com
    • Application of Shopping Center BusinessLicenseThe application of Shopping Center Business License is submitted byattaching 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. www.lekslawyer.com
    • •Licenses for PropertyDevelopment in Jakarta www.lekslawyer.com
    • Licenses for Property Development inJakarta 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. www.lekslawyer.com
    • Overview of Property DevelopmentLicenses 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). www.lekslawyer.com
    • Overview of Preliminary Licenses on PropertyDevelopmentin 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. www.lekslawyer.com
    • Overview of Preliminary Licenses on PropertyDevelopmentin 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. www.lekslawyer.com
    • Sample of Legal CasePT X wants to confirm and clarify the completeness of a building licenses forseveral building hospitals which is managed by PT X, located inJakarta, Tangerang and Surabaya. PT X want to know whether the PreliminaryLicenses for each building hospital is required under the national and localprevailing 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 BuildingConstruction License in the period year of 1977 until periodyear of 2006. www.lekslawyer.com
    • Verification of Preliminary Licenses inJakarta www.lekslawyer.com
    • Verification of Preliminary Licenses inJakarta (Cont’d) www.lekslawyer.com
    • Verification of Preliminary Licenses inJakarta (Cont’d) www.lekslawyer.com
    • Verification of Preliminary Licenses inTangerang www.lekslawyer.com
    • Verification of Preliminary Licenses inTangerang (Cont’d) www.lekslawyer.com
    • Verification of Preliminary Licenses inSurabaya www.lekslawyer.com
    • Verification of Preliminary Licenses inSurabaya (Cont’d) www.lekslawyer.com
    • ConclusionTherefore, from the local regulations of three differentregions i.e Jakarta, Surabaya and Tangerang, onlyJakarta has Preliminary Licenses as progressivelicenses to construct building. www.lekslawyer.com