First-Time Formation of the Association of Owners and Occupants of Apartment Units (PPPSRS)

The development of apartment buildings in Indonesia has surged due to increasing demand for housing and limited land availability. Apartments are favored for their strategic locations near public facilities such as schools, hospitals, office centers, and shopping malls.

For owners and occupants of apartment units ("Unit Owners"), the term Association of Owners and Occupants of Apartment Units ("PPPSRS") may be familiar. The question is, do unit owners understand the importance of PPPSRS? Is it mandatory to form PPPSRS? And what are the steps involved, particularly for the first-time formation?

What is PPPSRS?

According to Article 1 Paragraph (1) of Regulation of the Minister of Public Works and Housing No. 14 of 2021 ("Minister Regulation 14/2021"), PPPSRS is a legal entity consisting of the owners and occupants of apartment units. Its main role is to manage shared ownership and governance of the apartment complex, ensuring safety, order, and comfort for all residents.

Under Article 2 Paragraph (1) of the Minister REgulation 14/2021, forming PPPSRS is a mandatory obligation for unit owners. The developer is required to facilitate and finance the first-time formation of PPPSRS. The process consists of two key stages: the Preparation Stage and the Deliberation Stage.

Stages for First-Time Formation of PPPSRS

1. Preparation Stage

• Occupancy Socialization: The developer must organize a socialization session to explain the importance of forming PPPSRS, including the procedures for managing the apartment complex.
• Registration of Unit Owners and Occupants: The developer must collect data on all unit owners and occupants present during the socialization.
• Formation of the Deliberation Committee: After socialization, unit owners must promptly form a deliberation committee to draft the organizational structure of PPPSRS.

2. Deliberation Stage

• Formation of the Deliberation Committee: Unit owners must form the deliberation committee no later than 3 months after the initial handover of units.
• Meeting Invitation: The developer must send out meeting invitations at least 10 days before the scheduled meeting. The meeting will be chaired by a committee leader selected from the unit owners.
• Decision Making: Decisions during the deliberation are made based on the majority vote of the unit owners present.

Why is PPPSRS Important?

The formation of PPPSRS is crucial for the management and maintenance of apartment complexes. It ensures that all unit owners and occupants comply with the applicable rules and helps maintain a comfortable and orderly living environment. PPPSRS also oversees the use of communal facilities, security arrangements, and dispute resolution among residents.

The first-time formation of PPPSRS is also a legal requirement under Law No. 20 of 2011 concerning Apartment Buildings, as amended by Law No. 11 of 2020 on Job Creation (the Omnibus Law). Therefore, this process is not merely administrative but a critical step towards ensuring proper governance in high-rise residential communities.

- Giovani Siringoringo -