Each member of association of owners and tenants of Condominium units (“PPPSRS”) has rights and obligations in relation to management of Condominium units. This membership is represented by householder and shall become effective since recorded in the list of tenants and/or have been domiciled in Condominium units which held by them in accordance with the applicable provisions.

Article 16 paragraph 2 point b Government Regulation Number 4 of 1988 on Condominium (“GR 4/1988”) regulates that, every tenants of Condominium is obligated to pay service charge. The service charge is derived from PPPSRS which is collected by the association or the management board in accordance with the terms that have been agreed between administrator and management board or under the Article of Association or by By-Laws of tenants.

This service charge is the responsibility of owner, unless the owner has transferred it to the tenant. Article 74 paragraph (2) of Law Number 20 of 2011 on Condominium (“Law 20/2011”) states that, PPPSRS consists of the owner or tenants who obtain the authority from the owner of the Condominium unit. The authority from the owner to tenant is limited to tenancy, for example, in determining the amount of service charge for the management of safety, cleanliness, or social community.

Service charge for each Condominium units is calculated from the total cost of the daily management of Condominium units within the budget set by PPPRS. The costs are covered jointly by the owner of Condominium units based on Proportional Value Comparison of Condominium units.

Any Condominium units’ tenant who violates Article 16 paragraph 2 point b of GR 4/1988who does not fulfill the obligation to pay service charge is categorized as unlawful act. As regulated in Article 17 paragraph (1) of GR 4/19988 the sanction is maximum confinement for maximum of 1 (one) year and/or a maximum fine of Rp. 1.000.000,- (one million Rupiah)

Sofie Widyana P.