Jakarta, May 2025 — Dr. Eddy Marek Leks, a leading Indonesia lawyer in Indonesian real estate law, has shared key insights on the newly issued Minister of Housing Regulation No. 4 of 2025, which significantly updates the legal framework for PPPSRS (Condominium Owner and Tenant Association – Perhimpunan Pemilik dan Penghuni Satuan Rumah Susun). This regulation replaces Minister Regulation No. 14 of 2021 and addresses critical issues in condominium ownership and management across mixed-use developments in Indonesia.

In a YouTube video titled “Perubahan dan Penambahan Penting dalam Peraturan Perhimpunan Pemilik dan Penghuni Satuan Rumah Susun” (Important Changes and Addition in Rules of Tenant and Owner Association of Condominium Unit), Dr. Leks outlines significant provisions under the PPPSRS Regulation 2025 that practitioners, property developers, and condominium stakeholders must understand.

Key Highlights of the PPPSRS Regulation 2025:

Voting Rights Reform: The regulation replaces the “one owner, one vote” system with a model based on Comparative Proportional Value (NPP). This change limits voting power to a maximum of 20% per owner, ensuring fair representation, especially in mixed-use condominium complexes.
Subdivision of PPPSRS: Management is now formally divided between residential and non-residential units, recognizing the operational diversity of properties such as offices, retail, and hotels. Correspondingly, common property subdivision ensures better alignment between ownership and use.
Enhanced Condominium Management Rules: The regulation introduces new rules for service charges and sinking fund management, bank account transparency, financial reporting, and tenancy agreements, addressing previous legal ambiguities.
Administrative Oversight: Strengthened provisions on administrative sanctions, dispute resolution, and management accountability improve governance clarity and investor confidence.
Regulatory Expansion: The new regulation features 101 articles, up from the previous 43, signaling a major legal overhaul to support more robust and transparent condominium governance in Indonesia.

“This regulation is a progressive step in Indonesian condominium regulation, but there’s still room for clearer guidance—especially on the financial autonomy of PPPSRS subdivisions,” said Dr. Eddy Leks.

Eddy M. Leks is an Indonesian leading lawyer and arbitrator, recognized as a litigation star by Benchmark Litigation, dubbed as “Highly Regarded” on M&A by IFLR1000, included as one of the A list of Indonesia’s Top 100 Lawyers by ABLJ, ranked Band 1 by Chambers on real estate and is noted “for his extensive experience in Indonesia’s real estate legal market.” He is a registered arbitrator at BANI Arbitration Center, LAPS SJK, and APIAC.

If you have any queries, you may contact us through query@lekslawyer.com, visit our website www.lekslawyer.com or visit our blog.lekslawyer.com, real estate law blogs i.e., www.hukumproperti.com and www.indonesiarealestatelaw.com

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Watch Our Legal Video on the New PPPSRS Rules

For deeper analysis of Dr. Leks commentary on the above subject, please read it here. For another reading on Two-Tier PPPSRS Organization, please read it here.