Perppu Job Creation Series – Amendments to the Multi Storey Housings Law

This Newsflash is a continuation of our previous Perppu Job Creation Newsflashes 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”), specifically for Multi Storey Housings Law (as regulated under Law No. 20 of 2011 dated November 9, 2011, regarding Apartments or the “Multi Storey Housings Law”).

As Perppu Job Creation expressly revokes and replaces Law No. 11 of 2020 dated November 2, 2020, regarding Job Creation (the “Job Creation Law”) (and took effect immediately as of December 30, 2022), consequently, the amendments to the Multi Storey Housings Law under the Job Creation Law are no longer in effect.

Please note that the Multi Storey Housings Law was previously amended in the Job Creation Law as can be seen in our Newsflash on New Provisions Relating to the Agrarian Sector Introduced in the Omnibus Law. Similar provisions on the amendment of the Multi Storey Housings Law (as previously regulated in the Job Creation Law) are being reinstated into the the Perppu Job Creation.

The minor amendments to the Multi Storey Housings Law under the Perppu Job Creation are made in 2 (two) articles in the Multi Storey Housings Law, namely under Article 29(2) and Article 54(4). Under the Perppu Job Creation, Article 29(2) of the Multi Storey Housings Law stipulates that the function and utilization plan (required for constructing the Multi Storey Housings) must obtain a business permit from the Regent/Mayor in accordance with the norms, standards, procedures and criteria stipulated by the Central Government. Previously in the Job Creation Law, the reference was made to “Government”.

Meanwhile, Article 54(4) of the Multi Storey Housings Law under the Perppu Job Creation only rephrases the provision which stipulates that the criteria, procedures, and transfer for granting ease of ownership of Public Flats by Low Income Community (Masyarakat Berpenghasilan Rendah or MBR) will be further regulated under a Presidential Regulation. To date, such Presidential Regulation to implement Article 54(4) has yet to be issued by the President. Despite the rewording, the purpose and intention of this article remain the same.

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 is currently still waiting for the DPR’s approval.

March 1, 2023



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