The Formation of the Association of Owners and Occupants of Condominium Unit

Gain a comprehensive understanding of the formation of the Association of Owners and Occupants of Condominium Unit under the Regulation of Minister of Public Works and Public Housing No. 14 of 2021.

1. The developer is obliged to facilitate the PPPSRS formation no later than 6 months before the transition period is end.

2. Preparation for the PPPSRS formation includes stages (i) occupancy socialization, (ii) data collection of owners and/or occupants, and (iii) formation of a deliberation committee.

3. The deliberation is carried out by the deliberation committee and attended by all owners and local government representatives of housing affairs.

4. The decision making for the election of administrators and supervisors of PPPSRS is carried out using a one man one vote mechanism.

5. The decision for (i) election of deliberation chairman, (ii) legalization of the rules and schedule of deliberation, (iii) formation of the organizational structure and job descriptions of PPPSRS administrators and supervisors, (iv) legalization of the deed of establishment, articles of association and bylaws, is carried out by majority vote.

6. The deliberation is considered valid if a quorum of 50% of owners is fulfilled.

The Association of Owners and Occupants of Condominium Unit (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.

The formation of PPPSRS is the obligation of developer, where the developer is obliged to facilitate the PPPSRS formation no later than 6 months before the transition period is end. Meanwhile, the transition period is set at a maximum of 1 year since the first handover of the condominium unit to the owner.

The procedure for PPPSRS formation by developer is regulated under the Regulation of Minister of Public Works and Public Housing No. 14 of 2021 on the Association of Owners and Occupants of Condominium Unit.

Preparation for the PPPSRS formation includes stages (i) occupancy socialization, (ii) data collection of owners and/or occupants, and (iii) formation of a deliberation committee, as follows:

1. Occupancy Socialization.

   The developer is required to carry out transparent occupancy socialization to apartment owners and/or residents of condominium unit during the marketing of condominium unit, signing the deed of sale and purchase agreement, and before the formation of the PPPSRS.
   This socialization is carried out both directly and through various information media listed on the condominium. The socialization material consists of, among other, procedures for PPPSRS formation, temporary house rules, management and occupancy matters of condominium, and draft of articles of association and bylaws.
   

2. Data Collection of Owners and/or Occupants.

   The data collection of owners and/or occupants is carried out in accordance with legal ownership or occupancy. Proof of ownership includes the deed of sale and purchase agreement, Certificate of Right of Ownership of Condominium Unit (sertipikat hak milik atas satuan rumah susun “SHM Sarusun”), and Certiciate of Building Ownership of Condominium Unit (sertifikat kepemilikan bangunan gedung atas satuan rumah susun “SKBG Sarusun”). Meanwhile, proof of occupancy includes a lease purchase agreement, lease agreement, or borrow-use agreement.
   Then, the result of the data collection is submitted to the deliberation committee as the basis to holding deliberations.
   

3. Formation of a Deliberation Committee.

   The deliberation committee is formed by the owners who are domiciled in the condominium, which must be formed no later than 3 months since the first handover of the condominium unit. For the formation plan, the developer is obliged to invite all owners to attend the meeting to form the deliberation committee, which is led by the chairman accompanied by 2 members.
   The deliberation committee consists of elements of the owner who domiciled in the condominium and representatives of the developer, whose composition consists of a chairman, secretary, treasurer, and 6 members. However, representatives of the developer do not have voting rights in decision making.
   The deliberation committee is tasked with, among other, (i) preparing and determining the implementation schedule for the deliberation on the PPPSRS formation, (ii) preparing draft articles of association and bylaws of PPPSRS, (iii) preparing draft house rules, (iv) preparing PPPSRS work program, and (v) holding deliberation on the PPPSRS formation.

The deliberation is carried out by the deliberation committee by inviting all owners and local government representatives of housing affairs to attend the deliberation. The invitation is sent no later than 7 working days before the deliberation is held.

The deliberation is held to discuss (i) the formation of the PPPSRS organizational structure, (ii) the preparation and legalization of the articles of association and bylaws, and (iii) the election of PPPSRS administrators and supervisors.

Decision Making in Deliberation

The decision making for the election of administrators and supervisors of PPPSRS is carried out using a one man one vote mechanism. This means that each owner has 1 vote even if the owner owns more than 1 condominium unit.

Meanwhile, decision for (i) election of deliberation chairman, (ii) legalization of the rules and schedule of deliberation, (iii) formation of the organizational structure and job descriptions of PPPSRS administrators and supervisors, (iv) legalization of the deed of establishment, articles of association and bylaws, is carried out by majority vote.

Attendance Quorum

The deliberation is considered valid if a quorum of 50% of owners is fulfilled. If the quorum is not yet reached, then the deliberation is postponed for a maximum of 2 x 60 minutes. If the quorum is still not reached, then the deliberation committee will postpone deliberations for 7 to 30 calendar days. After the postponement period is end, the decision can be taken in a bindingly even if the quorum is not reached.

After the quorum is reached, then the deliberation can be carried out by discussing (i) legalizing the rules and agenda for implementing the deliberation, and (ii) discussing and legalizing the deed of establishment, articles of association and bylaws, including the membership and organizational structure of PPPSRS.