Association of Owner And Tenant of Condominium Unit (P3SRS)

Association of Owner And Tenant of
Condominium Unit (P3SRS)

Establishment of P3SRS
• The establishment of P3SRS must be facilitated by the developers no later than the end of transition
period.
• The transition period is at the latest 1 year from the first handover of condominium unit to the owner,
despite that the condition all condominium units have not been sold.
• The “facilitation” must consist of at least:
a. providing meeting rooms along with its supporting equipment, which must consist of at least
tables, chairs, whiteboards/stationaries, microphones, and information/media boards for the
owners and/or tenants.
b. providing ownership and/or tenancy data, along with the location of condominium units based
on the record conducted by the developers.
c. supporting the administration and providing meals (consumption).
• The establishment of P3SRS consists of the (i) preparation for the establishment, and (ii)
implementation of establishment, with the funding that will be borne by the developer.

Preparation of P3SRS Establishment
• The Developer shall conduct the direct socialization and using information media (a) since the
beginning of marketing activities of the condominium units to prospective buyers, and (b) before
the establishment of P3SRS.
• The data collection of owners and/or tenants is carried out by developer in accordance with the
principle of valid ownership or tenancy.
• The valid ownership or tenancy is based on the evidence of condominium ownership or tenancy.
• The Developer delivers the results of data collection to the Committee Meeting to be used in the
deliberation meeting.

Preparation of P3SRS Establishment (Cont’d)
• The Developer facilitates the owners for establishing the Committee Meeting before the
establishment of P3SRS.
• The facilitation is conducted by holding a meeting for the establishment of Committee Meeting.
• The Committee Meeting consists of at least (i) chairman, (ii) secretary, (iii) treasurer, and (iv)
four members.
• The members of Committee Meeting comes from (i) owners that have been elected in the
establishment meeting, and (ii) 2 person from the representatives of Developer.

Implementation of Establishment Meeting of
P3SRS
• The establishment meeting is carried out by the Committee Meeting by formally inviting all
owners as well as representatives of regional government to observe the meeting.
• The meeting is led by the Chairman of Meeting which consists of the Head of Meeting
accompanied by 2 members. The Chairman of Meeting is elected from and by the participants by
deliberation or voting in case the deliberation is failed to make a decision.
• The Chairman of Meeting is not allowed to be the candidate of management or supervisor of
P3SRS.

Implementation of Establishment Meeting of P3SRS
• The Chairman of Meeting shall stipulate the rules of meeting, articles of association, by-laws, and
the working program of the management.
• The establishment meeting is conducted to:
• form the structure of organization;
• arrange the articles of association and by-laws;
• elect the management of P3SRS; and
• elect the supervisor of P3SRS.
• The decision of meeting is valid if the quorum of meeting is achieved, in which the meeting is
attended by more than 50% from the total number of owners.

Implementation of Establishment Meeting of
P3SRS(Cont’d)
• The decision of the (a) formation of organization structure, (b) arrangement of the
articles of association and by-laws, (c) working program of the management, must be
made by deliberation or voting in case the deliberation is not achieved.
• The election of management and supervisors of P3SRS is made by voting. The voting
can only be used by the owners or their representatives. Each owner or its
representative only has 1 vote, even though the owner has more than 1 condominium
units.

Implementation of Establishment Meeting of P3SRS
(Cont’d)
• The deed of establishment, articles of association, and by-laws are recorded to the
technical agencies of the regency/city government that administer the government
affairs in the housing sector, whilst for the DKI Jakarta Province, the recordation is
conducted with the province’s technical agencies that administer government affairs in
the housing sector that shall be evidenced by recordation numbers.
• The aforementioned recordation is carried out by the Chairman of P3SRS or other
management as listed under the deed of establishment, no later 14 business days after
the meeting is held.

Membership and Organization Structure of P3SRS
• The member of P3SRS consists of owners or tenants that obtained proxy from the owners.
• The owners of condominium unit are allowed to give a power of attorney to the tenants for attending a
meeting of P3SRS.
• The power of attorney from the owners to the tenants is limited for tenancy matters.
• The member of P3SRS owns voting rights for deciding matters related to :
a. tenancy;
b. ownership; and
c. management.
• The member of P3SRS owns 1 voting right to decide matters related to tenancy. For the voting rights to
decide matters related to ownership and management, the voting right of member should be based on the
Proportional Comparison Value (NPP). The voting rights for the ownership and management matters
can be authorized to the tenants in writing.

Membership and Organization Structure of
P3SRS
• The organization structure of P3SRS consists of management and supervisors, and it shall be formulated
in the deed of establishment, articles of association, and by-laws. The management and supervisors are
owners that present at the establishment meeting and domicile in the condominium.
• The organization structure of the P3SRS management consists of at least :
a. chairman;
b. secretary;
c. treasurer; and
d. sectors that are related to management and tenancy.
• The supervisors consist of 5 persons or in any other odd number, with the formation of (a) chairman, (b)
secretary, and (c) 3 members from the owners of condominium units.
• The management period of P3SRS is for 3 years.

Condominium Management
• The developer within a maximum period of 3 months after the establishment of P3SRS
must handover the management of common facility, common equipment and common
land to the P3SRS that shall be done before a notary.
• Before the handover of management, the Developer must conduct a financial audit by
using public accountant that has been agreed by the management of P3SRS.
• After P3SRS receives the handover, the Developer shall be considered as the owner of
the condominium units that have not been sold.

Condominium Management
• In managing the condominium, the P3SRS can establish or appoint a manager no later
3 months after the establishment of P3SRS.
• The manager that is established or appointed by P3SRS must meet the following
requirements :
a. legal entity; and
b. business permit from a regent/mayor, or governor for DKI Jakarta Province.
• If the manager is established by the P3SRS, then its management organization should
be separated from the management organization of the P3SRS. The manager that is
appointed by P3SRS is based on the result of selection process from several managers
that has been carried out transparently.

Meeting of P3SRS
• The meeting of P3SRS consists of :
• management meeting;
• general meeting.
• General meeting consists of :
• annual general meeting;
• extraordinary general meeting, as the general meeting outside of annual general meeting.
• The decision in the general meeting is carried out based on the principle of deliberation and
consensus with the family spirit, and if that cannot be achieved then the decision can be made
based on majority vote.

Cooperation in the Gradual Construction of Condominium
• The construction of condominium that is planned in one construction system on a
single plot of land can be done gradually.
• The establishment of P3SRS in the condominium that is constructed gradually shall be
held on each construction stages of condominium.
• In the event that there is a construction stage of condominium that has not been
completed, the Developer must cooperate with the P3SRS that already established.
• The cooperation is carried out based on a cooperation agreement in a form of an
authentic deed.

COMPARISON OF PROVISIONS ON VOTING RIGHTS OF P3SRS MEMBERS
No. Kepmen 6/1995 Permen 23/2018
1. Tenancy voting rights, is the voting
rights for PPRS members to determine
matters related to tenancy rules, use of
facilities, and obligation to pay service
charge and fire insurance towards
common right, common facility and
common land. Each owners of the right
of condominium units are represented
by one vote.
Tenancy interest voting rights, is the voting
rights for P3SRS members to determine
matters related to social relationship between
the tenants, namely the right to determine
the tenancy rules, to conduct other
community services and to determine the
amount of fees for security, sanitation, and
social welfare. Each member of P3SRS is
represented by one vote.
2. Management voting rights, is the voting
rights for P3SRS members to determine
matters related to maintenance,
repairmen, and construction of
environmental infrastructure, as well as
social facilities, common facility, shared
property, and shared land. Management
voting rights are calculated based on the
NPP of the condominium.
Management voting rights, is the voting rights
for P3SRS members to determine matters
related to operations and maintenance
activities of the common equipment, common
facility and common land, payment and
determination of service charge and sinking
fund. The management voting rights is
calculated based on NPP.

COMPARISON OF PROVISIONS ON VOTING RIGHTS OF P3SRS MEMBERS
3. Ownership voting rights is the voting
rights for the tenants to determine
matters related to the relationship
between the tenants of condominium,
the election of management of the
tenant association, and the costs for the
condominium unit. Ownership voting
rights are calculated based on NPP of
each condominium units.
Ownership voting rights is the voting rights for
P3SRS members to determine the utilization
of common facility, common equipment and
common land and costs for the condominium
units. Ownership voting rights are calculated
based on the NPP.
4. Election voting rights is the owners’ voting
rights to choose the management and
supervisors of P3SRS. The election voting
rights are calculated based on the majority
votes. The owner is only entitled to give 1
vote, even though that the owner owns more
than 1 condominium unit.

COMPARISON OF PROVISIONS ON QUORUM OF GENERAL MEETING
1. The meetings as stipulated under the
articles of association is valid if the
meeting attended by at least 2/3 from the
total members of the tenant association,
unless stipulated otherwise in the articles
of association.
Decision in the general meeting is valid if it
meets the quorum that is attended by more
than 50% from the members of the P3SRS.
2. In principle, the decisions is made based on
the agreed votes that are more than 2/3
from the members that are attended.
The decision is made based on the principle
of deliberation and consensus with the family
spirit, and if the deliberation and consensus
are not achieved, then the decision needs to
be made based on majority vote.

COMPARISON OF QUORUM FOR MEMBER GENERAL MEETING
3. If the number of member that attends the
aforementioned meeting does not represent
at least 2/3 of the total amount of member,
the meeting invitation is held once again
and if it still cannot achieve 2/3 from the
total amount of member present, then the
members present in any amount can hold a
meeting and will make valid decisions that
will bind other members.
If the number of member that attends the
aforementioned meeting, after given the
extension time maximum 2 hours and
minimum 30 minutes, does not represent
more than 50% from the total number of
P3SRS members, then the meeting has to be
postponed to maximum 30 calendar days and
minimum 7 calendar days and a meeting
invitation is held once again. If at the second
meeting, after an additional time of
maximum 2 hours and minimum 30 minutes,
the attendance quorum has not represented
more than 50% from the total number of
P3SRS members, the chairman of meeting
opens the general meeting, and the meeting
can take valid decision.

COMPARISON OF PROVISION ON AMENDMENTS OF ARTICLE OF
ASSOCIATION
1. Amendment to the provisions on the articles of
association also includes the changing of the
name of the association and the name of the
condominium can only made based on decision
from the general meeting of PPRS that is made
and convened for that purpose by PPRS.
Amendments to the provisions on the articles of
association and by-laws also includes the changing
of name of theP3SRS (name of the condominium)
can be decided in a general meeting or
extraordinary general meeting which must be
attended directly by the owners that represent
minimum 2/3 from the total valid owner’s right.
2. General meeting must be proposed by all valid
tenants and must be attended by at least 2/3 from
the total amount of PPRS members and the must
be approved by 2/3 from the total number of
tenancy voting rights.
Amendments to the provisions on the articles of
association and by-laws that is made in the annual
general meeting or extraordinary general meeting is
considered valid if they are not supported by
minimum 2/3 from the total amount of valid voting
rights.
3. *Not yet stipulated. If the amendments to the provisions of articles of
association are only to conform with the provisions
of the applicable laws and regulations, then the
above conditions are excluded, and therefore the
provision on quorum and decision as stipulated
under the articles of association that is specifically
scheduled for the matter will apply.

COMMENTARIES ON PERMEN P3SRS 2018
No. Positive Negative
1. The meaning of "facilitation" is clearly explained
that the developer does not organize the
establishment of the P3SRS and instead only
facilitate the Committee Meeting.
The condominium law does not mandate the
Minister to issue the implementing regulations
regarding P3SRS, instead it should be in a form of
government regulations.
2. The procedure for establishing P3SRS becomes
clear, which is through the establishment
meeting as facilitated by the Committee
Meeting.
Decision on organization structure, arrangement of
articles of association and by-laws, and working
programs is stated based on majority vote. It is
unclear whether it’s a one man one vote or NPP.
This can make multiple interpretations and
disputes.
3. Attaching the deed of establishment format
that can be used easily and clearly
Unfortunately, the proof of ownership in the
establishment is not explained, whether a sale and
purchase agreement can be used as a basis or is it
has to be a deed of sale and purchase. If it has to
be a deed of sale and purchase, then the
establishment of P3SRS in the transition period is
almost impossible / very difficult to be done.
4. The change of management and supervisors of
P3SRS are recorded with the regional
government so that it can be easily monitored.
The introduction of “election voting rights" that
never be existed in the Condominium Law. This
violates the law principle. The lower regulation
should not introduce new voting rights other than
the voting rights that have been in force in
accordance with the Condominium Law.

5. The existence of a transfer period between
P3SRS and the developer is clear, which is not
more than 3 months after the P3SRS is
established, including the financial audit by
public accountants.
The quorum for amending the articles of
association and by-laws previously regulated based
on tenancy voting rights (although in many articles
of associations they the quorum based on NPP).
However, this new regulation is not clear since it’s
only mentioning ownership rights. This can make
multiple interpretations and disputes.
6. The quorum for the second meeting has been
clearly regulated, if the quorum for the first
P3SRS establishment meeting cannot be met.
There is no provision regarding if there are cost
borne by the developer but the condominium is
transferred. What is the status of the costs and
whether or not the costs have to settled? There can
also be a long debate on this matter before the
transfer.
7. The mechanism for invitation of establishment
meeting of P3SRS is clearly regulated.
No period for the delivery of permit, other than the
delivery of management. For that matter, it is not
clear whether or not the licenses should be existed
before the delivery or can be delivered after the
delivery of management.

8. There is a flexibility on the quorum for amending
the articles of association and by-laws,
specifically for the amendment that should be
done based on the instruction of prevailing laws
and regulations.
The gradual construction of condominium does not
consider the technical aspects of building planning.
When the buildings are separated, and the
common land s are separated, meanwhile the
building is set out under the IMB, then the purpose
of implementing the gradual construction of
condominium becomes ineffective. If separated,
then the ratio of construction will also decrease
dramatically, and therefore not feasible.
9. The manager has its own organization separated
from P3SRS.
There is no obligation to change the name PPRS to
P3SRS in accordance with condominium law. This
minister regulation should stipulate this matter.
10. The elected management and supervisors must
be domiciled in the condominium (in accordance
with the provisions of the articles of association,
but it is still unclear whether it is also for the
management that have been elected at
establishment of P3SRS).
There is a discrepancy regarding the task of the
Committee Meeting in the establishment meeting,
namely arranging of the articles of association and
by-laws that have been agreed by the owners.
However, the articles of association states that the
general meeting is the highest forum for legalize
the articles of associations and by-laws. Does
“arranging” means “legalization”? Does articles of
association and by-laws need to be legalized at the
general meeting of P3SRS? What about quorum
and voting rights? This is still unclear and can lead
to disputes.

11. The general meeting of P3SRS must be
conducted outside working hours or on holidays.
There is no regulation for in case if there is an
increase in the quality of the condominium as
stipulated in the condominium law, which is clearly
important.
12. The time period for the invitation to the general
meeting of P3SRS general is set for 14 days.
Provision regarding P3SRS for public condominium
and for those with ownership in a form of SKBG is
yet to be existed, even though this will be very
relevant in the future, especially for low income
communities.
13. There is a provision that obliges to establish the
Committee Meeting if the term of management's
will be ended, but this provision is not set out in
the articles of association and by-laws. This may
cause multiple interpretations and disputes in its
implementation.
14. Management rules do not take into account the
form of management fees that are not always in
the form of money and do not state if the manager
is the owner, or the owner is the manager. For
example: in a complex which includes a
condominium and a mall, both the condominium
and the mall are owned and managed by one party.

15. There is no regulation on limited joint areas (ABT),
even though this is very important for mixed
condominium. For example: there is an ABT for
each condominium, mall, hotel, etc. This is
vulnerable to multiple interpretations and disputes
16. The provisions regarding the financial statements
of P3SRS in relation to mixed condominium are not
described. In practice, it is possible for every
regions such as condominium area and mall area,
to have their own financial statements. How is the
consolidation? How will the P3SRS managers be
held responsible? Unfortunately, this is not clearly
regulated, even though it is very important.

Thank You
Menara Palma 10th Floor Suite 10-03
JL. H.R. Rasuna Said Blok X-2 Kav.6
Jakarta Selatan 12950, Indonesia
Ph: +62 21 5795 7550
F: +62 215795 7551

Association of Owner And Tenant of Condominium Unit (P3SRS)

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