Real Estate 2024

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

4.4 Obtaining Entitlements to Develop a New Project When initiating new projects, the following pro - cedures must be conducted: • land entitlement, through the acquisition of land title or through lease or co-operation agreements with land title holders; • KKPR, confirming that the intended land use aligns with spatial designations; • environmental approval, detailing the project’s environmental impacts, including potential environment harm and waste management; • building documentation, comprising the Building Construction Approval, to be obtained prior to commencing construction, and the Certificate of Building Worthiness, to be applied for after the completion of the construction for its utilisation; and • application for a business licence based on the relevant business scope – commercial operations can commence once the business licence is obtained. For significant building refurbishments encom - passing alterations in function, layers, area, appearance, specifications and dimensions of components, and retrofitting activities, the building owner must obtain a revised Building Construction Approval before commencing any construction activity. Public engagement, involving residents and social organisations, is encouraged in deter - mining spatial planning and overseeing building development. Input can be submitted to the cen - tral government (the MOA for spatial planning; Ministry of Public Works and Public Housing for building construction) and regional government.

4.5 Right of Appeal Against an Authority’s Decision

Generally, under administrative law, an appeal may be initiated against a decision made by an authority, including licence or approval for devel - opment or designated land use (ie, KKPR). Such appeal can be initiated if the decision is provided in writing, is issued to a specific party, and is considered final and definitive, imposing obligations on its receiver. Examples of such decisions include KKPR documents, Building Construction Approvals and decrees granting land titles. The appeal process encompasses administra - tive remedies, such as submitting an applica - tion to the relevant government authority. The MOA can revoke KKPR due to procedural and/ or administrative errors, including discrepancies in the applicant’s data or physical location mis - matches. Owners of adjacent land or objecting parties can submit an objection to title decrees to the local land office, which may initiate land remeasurement or boundary determination. A lawsuit can be initiated with the Administrative Court, which holds jurisdiction to examine and adjudicate disputes pertaining to administrative decisions. The procedural steps in administrative court cases are as follows. • Filing a lawsuit: the applicant files a lawsuit within 90 days of receiving notification of an administrative decision. • Dismissal review: following the filing, the court conducts a dismissal review to verify compli - ance with the criteria for the administrative lawsuit. The applicant has 14 days to contest any dismissal decision by the court.

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