Requirements for the Establishment of PPPSRS

In order to establish a legal entity of the Condominium Owners and Residents Association, proof of a notarial deed is required. The deed that is needed to establish the Condominium Owners and Residents Association is the Articles of Association (AD) and Bylaws (ART). The contents of the AD deed and ART deed are stated in the Minister of Home Affairs Regulation No. 3 of 1992. After the Notarial Deed, which consists of the AD Deed and ART Deed of the PPPSRS, is completed, the PPPSRS must be ratified by the Minister of Law and Human Rights (Menkumham) in order to obtain legal entity status. After it has been ratified, the PPPSRS then becomes the legal material for the condominium.

Based on Article 74 paragraph (2) of Law No. 20 of 2011, members of the PPPSRS are required to consist of condominium owners and residents of the condominium. Condominium developers are also not allowed to become members of the PPPSRS of the condominium they built, and the task of the developer is to assist condominium owners and residents in establishing the PPPSRS.

In Article 75 paragraph 1 of Law No. 20 of 2011, it is stated that condominium developers have an obligation to form a PPPSRS no later than one year before the transition period or the period of transfer of ownership of the condominium unit between the condominium developer and the condominium owner ends.