The legal framework governing multi-story structures and individual ownership within them in Indonesia is primarily dictated by Law No. 20 of 2011 on Condominiums (Undang-Undang Nomor 20 Tahun 2011 tentang Rumah Susun), as amended by Law No. 6 of 2023 on the Stipulation of Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation into Law (the “Job Creation Law”). The operational details are further elaborated in Government Regulation No. 13 of 2021 on the Implementation of Condominiums (Peraturan Pemerintah Nomor 13 Tahun 2021 tentang Penyelenggaraan Rumah Susun).

Under Article 1, Point 1 of Law No. 20 of 2011, a Rumah Susun (often abbreviated as “Sarusun” for the individual units) is defined as:

“Bangunan gedung bertingkat yang dibangun dalam suatu lingkungan yang terbagi dalam bagian-bagian yang distrukturkan secara fungsional, baik dalam arah horizontal maupun vertikal dan merupakan satuan-satuan yang masing-masing dapat dimiliki dan digunakan secara terpisah, terutama untuk tempat hunian yang dilengkapi dengan bagian bersama, benda bersama, dan tanah bersama.” (A multi-story building constructed in an environment divided into functionally structured parts, both horizontally and vertically, consisting of units that can each be owned and used separately, primarily for residential purposes, equipped with common parts, common property, and common land.)

The law categorizes condominiums into four distinct types based on their intended use and funding:

  1. Rumah Susun Umum: For low-income communities.
  2. Rumah Susun Khusus: For specific needs (e.g., disaster relief, social missions).
  3. Rumah Susun Negara: Owned by the state for official residences.
  4. Rumah Susun Komersial: Developed for profit, which constitutes the primary market for strata title ownership.

The Concept of Strata Ownership: SHMSRS and SKBG Sarusun

Ownership of a condominium unit is distinct from landed property due to the integration of individual and collective rights. There are two primary titles of ownership for units in Indonesia:

1. Sertifikat Hak Milik Satuan Rumah Susun (SHMSRS) According to Article 46 of Law No. 20 of 2011, the SHMSRS is the strongest evidence of ownership over a unit. It is a proprietary right over a unit that is individual and separate, while also including a proportional right to common parts, common property, and common land. The SHMSRS is issued on land held under Hak Milik (Right of Ownership), Hak Guna Bangunan (Right to Build), or Hak Pakai (Right to Use) granted over State Land or Land Management Rights (Hak Pengelolaan).

2. Sertifikat Kepemilikan Bangunan Gedung Satuan Rumah Susun (SKBG Sarusun) Introduced to facilitate ownership on leased land or state-owned land, the SKBG Sarusun is a certificate of ownership specifically for the building unit. Article 1, Point 12 of Law No. 20 of 2011 defines it as evidence of ownership for units built on land under lease or utilization agreements involving state/regional property or Hak Pengelolaan land. Unlike the SHMSRS, the SKBG does not grant a share in the “Common Land” (Tanah Bersama), as the land remains the property of the lessor or the state.

Components of Collective Ownership

A fundamental principle of Indonesian strata title is the inseparable link between the individual unit and the collective elements. Article 46, Paragraph 4 of Law No. 20 of 2011 mandates that the calculation of rights over common elements must be based on the Proportional Value (Nilai Perbandingan Proporsional or NPP).

  • Bagian Bersama (Common Parts): Parts of the building that are functionally used for the common interest but are inseparable from the building structure (e.g., foundations, columns, roofs, hallways, stairs, lifts, and utility networks).
  • Benda Bersama (Common Property): Objects that are not part of the building structure but are located on the common land and used for common interest (e.g., landscaping, parking structures, swimming pools, and social facilities).
  • Tanah Bersama (Common Land): The plot of land on which the condominium is built, held collectively by all unit owners. The share of each owner is determined by the NPP, which is calculated based on the floor area of the individual unit relative to the total floor area of all units.

The Separation Process and Pertelaan

Before units can be sold or titles issued, the developer must complete the “Separation” (Pemisahan) process. This is governed by Article 25 of Law No. 20 of 2011 and further detailed in ATR/BPN Regulation No. 18 of 2021.

The developer must draft a “Description Map” (Pertelaan) which clearly delineates the boundaries of each unit and identifies the common parts, common property, and common land. This Pertelaan must be approved by the local government. Following approval, the developer executes a Deed of Separation (Akta Pemisahan) in the presence of a Land Deed Officer (Pejabat Pembuat Akta Tanah or PPAT). This deed serves as the legal basis for the Land Office (Kantor Pertanahan) to register the individual SHMSRS titles and split the original land certificate into individual strata titles.

Governance and Management: PPPSRS

The management of a condominium is legally mandated to be handled by the Association of Owners and Tenants of Condominium Units (Perhimpunan Pemilik dan Penghuni Satuan Rumah Susun or PPPSRS). Under Article 74 of Law No. 20 of 2011, owners are obligated to form a PPPSRS within one year of the first handover of a unit.

The PPPSRS is a legal entity (badan hukum) responsible for:

  1. Managing the common parts, common property, and common land.
  2. Establishing House Rules (Tata Tertib).
  3. Collecting service charges and sinking funds.
  4. Appointing and supervising a professional management manager (Pengelola).

The voting rights within the PPPSRS are generally determined by the NPP. However, Government Regulation No. 13 of 2021 introduces specific nuances regarding the formation of the association to prevent developer dominance during the transition period. Article 75 of Law No. 20 of 2011 emphasizes that the PPPSRS must be registered and legalized by the relevant local government agency (e.g., the Housing Office or Dinas Perumahan).

Statutory Requirements for Development and Sale

Developers of commercial condominiums are subject to strict “Pre-Project Selling” regulations to protect consumers. According to Article 42 of Law No. 20 of 2011 and Article 5 of PP No. 13 of 2021, a developer may only market units if they possess:

  1. Certainty of land status (ownership of the underlying land certificate).
  2. Ownership of a Building Approval (Persetujuan Bangunan Gedung or PBG, formerly IMB).
  3. A guarantee of development from a financial institution.
  4. Availability of infrastructure, facilities, and public utilities.

Furthermore, the Sale and Purchase Agreement (Perjanjian Pengikatan Jual Beli or PPJB) must be executed before a Notary once the construction has reached at least 20% completion, as verified by a competent authority.

Conversion and Extension of Underlying Land Rights

Since most condominiums in Indonesia are built on Hak Guna Bangunan (HGB) land, the validity of the SHMSRS is tied to the duration of the underlying HGB. Under Law No. 6 of 2023 and PP No. 18 of 2021, HGB is typically granted for 30 years, extendable for 20 years, and renewable for another 30 years.

The PPPSRS is responsible for coordinating the extension or renewal of the underlying land title on behalf of all unit owners. Failure to renew the underlying land right can result in the land reverting to the State, which would jeopardize the legal standing of the SHMSRS, although Article 35 of PP No. 18 of 2021 provides mechanisms for the “prioritized” renewal of rights for existing holders.

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