Authority of the Management Body in Management of Condominium

Obtain information regarding the provisions regarding the authority of PPPSRS in the management of condominium under the Regulation of Minister of Public Works and Public Housing No. 13 of 2021.

1. The developer is obliged to handover the management of the Joint Rights to the PPPSRS no later than 3 months after the PPPSRS is formed.

2. PPPSRS can form a separate legal entity or appoint a Management Body that has the authority to manage the condominium.

3. The Management Body by PPPSRS is in the form of a limited liability company which separate from the PPPSRS organization.

4. The appointment of Management Body by PPPSRS is carried out through an open and transparent selection process, which are regulated under the articles of association and bylaws of PPPSRS.

5. The implementation of duties, authorities and obligations of Management Body is regulated under the management agreement between the Management Body and PPPSRS.

The Association of Owners and Occupants of Condominium Units (Perhimpunan Pemilik dan Penghuni Satuan Rumah Susun “PPPSRS”) is a legal entity consisting of owners or occupants, whose formation must be facilitated by the developer.

PPPSRS has the function to manage the interests of owners and occupants related to the management of ownership of joint facility, joint property, joint land (“Joint Rights”) and occupancy.

Specifically, the provisions regarding the management of condominium by PPPSRS is regulated under Regulation of Minister of Public Works and Public Housing No. 14 of 2021 on the Association of Owners and Occupants of Condominium Units.

Handover of Management of Condominium from Developer to PPPSRS

No later than 3 months after the PPPSRS is formed, the developer is obliged to handover the management of the Joint Rights to the PPPSRS, which is done before a Notary. The handover includes:

1. separation documents;

2. deed of separation;

3. technical data of the condominium construction;

4. as-built drawings; and

5. all permit documents.

In carrying out management, PPPSRS can form a separate legal entity or appoint a management body that has the authority to manage the condominium (“Management Body”).

The Management Body by PPPSRS is in the form of a limited liability company which separate from the PPPSRS organization, and PPPSRS must hold at least 51% of the total equity of the company. Then, the manager comes from members and/or non-members of PPPSRS, but cannot come from PPPSRS administrators.

Meanwhile, the appointment of Management Body by PPPSRS is carried out through an open and transparent selection process, which are regulated under the articles of association and bylaws of PPPSRS.

In carrying out management, the Management Body has at least the task of:

• carry out operational activities, maintenance and upkeep of condominium;

• supervising the use of Joint Rights;

• submit development proposals related the maintenance and upkeep of condominium based on evaluations to the PPPSRS administrators;

• provide regular written reports to the PPPSRS administrators at least every 3 months, and annual reports;

• carry out tasks assigned by the PPPSRS administrators related to management.

In addition, the Management Body also has authorities and obligations, which includes:

• propose the house rules and other regulations related to management of condominium to the PPPSRS administrators;

• submit and collect the amount of the condominium cost and service charge to each owner and/or occupant;

• implement the use of a computerized management reporting information system that can be accessed by PPPSRS members; and

• carry out other authorities granted by PPPSRS under the management agreement.