Background

The purpose of the issuance of Government Regulation Number 44 of 1994 on Occupancy of Home by Non-Owner (“GR No. 44/1994“) is made to ensure fairness and legal certainty of the owner, renters/lessee or occupant in the use of the house and to implement the provisions of Article 12 and Article 13 of Law Number 4 of 1992 on Housing and Residential (“Housing and Residential Law“). This Housing and Residential Law is revoked and replaced by Law Number 1 of 2011 on Housing and Residential Area (“Housing and Residential Area Law“). On this day, GR No.44/1994 is still valid and it has revoked the Government Regulation Number 17 of 1963 on the Principles of Implementation of Government Regulation in Lieu of Law on Permanent Housing (“GR No. 17/1963“) and Government Regulation Number 49 of 1963 on Relations of Housing Operating Lease (“GR No. 49/1963“) as amended by Government Regulation Number 55 of 1981 (“GR No. 55/1981“) and all their implementing regulations so long they regulate the lease of a house.

Contents of GR No. 44/1994.

House is a building that serves as a residence or dwelling and means of fostering family (Article 1 paragraph (3) No. 44/1994). House can be occupied through lease. Under Article 1 paragraph (3) GR No. 44/1994 it is stated that leasing is a condition where the house is occupied not by the owner based on the lease agreement. Further, leasing is based on a written agreement between the landlord and tenant. It is regulated that a house that is in a dispute shall not be leased (Article 4 paragraph (1) & (3) GR No. 44/1994).

If a house is rented out over the land that is owned by other party, then under Article 4 paragraph (1), the leasing can be performed after obtaining the consent of the owner of the land and the approval must be in writing (Article 5 paragraph (1) & (3) GR No. 44/1994). With regards to the amount of rent fees, Article 17 GR No.44/1994 states that it is based on the agreement between the owner and the tenant.

GR No. 44/1994 also regulates the occupancy of house that is made not through a lease. Under Article 14, Article 15 and Article 16, it is stated that the occupancy of house that is not through a lease must be based on a written agreement between the owner and the tenant.

The GR No. 44/1994 was enacted on the 26 December 1994.

Raymond Hutagaol