This Newsflash is a continuation of our previous Newsflash with respect to the issuance of a Government Regulation in Lieu of Law (Peraturan Pemerintah Pengganti Undang-Undang or Perppu) No. 2 of 2022 dated December 30, 2022, regarding Job Creation (the “Perppu Job Creation”). Perppu Job Creation expressly repeals and replaces Law No. 11 of 2020 dated November 2, 2020, regarding Job Creation (the “Job Creation Law”).
This Newsflash discusses the latest amendments to the Housing and Residential Areas Law (Law No. 1 of 2011 dated January 12, 2011, regarding Housing and Residential Areas) in accordance with the Perppu Job Creation. Accordingly, the amendments to the Housing and Residential Areas Law under the Job Creation Law are no longer in effect.
Please see below the relevant amendments to the Housing and Residential Areas Law under the Perppu Job Creation compared to the previous amendments under the Job Creation Law.
♦ Minor Amendments and Changes
In general, the amendments to the Housing and Residential Areas Law under the Perppu Job Creation are similar with the amendments under the Job Creation Law. The Perppu Job Creation makes minor amendments and changes to the provisions of the Housing and Residential Areas Law previously amended by the Job Creation Law.
Such changes may be seen under Article 36 of the Housing and Residential Areas Law which removes the previous paragraph 4 of Article 36 that explains the possibility of converting a Basic House (Rumah Sederhana) into a general flat if it cannot be built in the form of a single house or townhouse. We note that the removal of such a section is due to a similar provision that has been provided under Article 36(2) of the Housing and Residential Areas Law.
Furthermore, the Perppu Job Creation also amends Article 55(5) of the Housing and Residential Areas Law in which only the appointment and formation of the institution which handles the transfer of ownership of a Basic House with facilities provided by the Government will be regulated under the Presidential Regulations, while the facility and/or assistance in the construction and acquisition of Housing for Low-income Citizens (Masyarakat Berpenghasilan Rendah or MBR) will be regulated under the Government Regulation.
The Perppu Job Creation also amends (i) Article 109(4) of the Housing and Residential Areas Law by not requiring a confirmation and recommendation of the suitability of space utilization activities for Consolidated Land Location that has been determined, (ii) Article 134 of the Housing and Residential Areas Law by removing the conformity to a standard that has been agreed as part of the prohibition of building houses, and (iii) Article 150(1) of the Housing and Residential Areas Law by adding a violation of Article 36(4) as a violation that is subject to an administrative sanction.
Several cosmetic changes can also be seen in the Perppu Job Creation such as the capitalization of the word Houses, Housing, and others.
♦ Restatements of Amendments
Other than the above, the Perppu Job Creation only restates the amendments to the Housing and Residential Areas Law previously made under the Job Creation Law.
Further, it shall be noted that the Perppu Job Creation must be submitted to the Parliament (Dewan Perwakilan Rakyat or “DPR”) for the DPR's approval after which the Perppu Job Creation would be enacted as a Law. If the DPR rejects the Perppu Job Creation, the regulation will be canceled and the Job Creation Law will be re-enacted. As of the issuance of this Newsflash, the legislative body of the DPR (Badan Legislasi DPR) has approved the Perppu Job Creation to be brought to the second hearing (plenary meeting/rapat paripurna), but still waiting for the DPR's approval.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
