Real Estate 2024

INDONESIA Law and Practice Contributed by: Yogi Sudrajat Marsono, Heru Pamungkas, Agnes Maria Wardhana and Andin Aditya Rahman, Assegaf Hamzah & Partners

• government regulation for RTRW at the national level; • presidential regulation for National Strategic Areas; • regional regulation or governor regulation for RTRW for each province; and • regional regulation or regulations by regional heads for RDTR and RTRW for each city/ regency. The central government consistently integrates the RTRW and RDTR into the national land map, serving as a basis for the government in pro - cessing and issuing KKPR, which is a prerequi - site for business licences. 4.2 Legislative and Governmental Controls Applicable to Design, Appearance and Method of Construction Following the enactment of the Job Creation Law, government controls on building con - struction involve the application of a risk-based approach, imposing technical norms, standards, guidelines and criteria for the function, design, method of construction and refurbishment work for each type of building, depending on: • building construction complexity, includ - ing simple, non-simple and special building, according to factors such as the number of floors and maximum area; • building functions, encompassing residential, religious, business, social, cultural and spe - cial functions; • building requirements, such as coefficients standards for different types of buildings and technical, architecture and structural designs; • building licensing obligations for construction, utilisation, maintenance, inspection, pres - ervation and demolition processes – major approvals include Building Construction Approval, which is required before commenc -

ing construction and is valid for two years, and a Certificate of Building Worthiness, which is required before building utilisation and is valid for five years; • roles of the community, including building construction contractors and technical advis - ers; and • sanctions for non-compliance, including warnings, suspension of licences and/or demolition orders. 4.3 Regulatory Authorities The following authorities are responsible for regulating development and spatial designation. • The Ministry of Investment, along with local or provincial One-Stop Integrated Licens - ing Agencies, manages KKPR confirmation issuance in areas with established RDTR, on behalf of the MOA. This involves aligning pro - posed business activities with the RDTR and issuing KKPR through the OSS system. • The MOA, alongside local land offices, grants KKPR approval in areas without RDTR, subject to the proposed business activities aligning with RTRW regulations. • Regional governments, including executive (Mayor/Regent) and legislative (Regional House of Representatives) branches, enact regulations for RTRW and RDTR. The Spatial Planning Department can provide written confirmation on spatial planning designations upon request. Changes to spatial designations are significantly restricted, occurring only once every five years or in response to national strategic initiatives. These changes must be initiated by the regional government with the MOA, meaning they cannot be instigated solely by a single business entity but require regional government action.

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