Our CEO of Leks&Co wrote an article titled “Undang-Undang Perumahan dan Permukiman Pasca UU Cipta Kerja” as published in property section of Propertynbank.com.

The Job Creation Law changes, sets new, removes some provisions stipulated in the housing and settlement area law, condominium law, construction services law, and water resources law. These four laws are packages that fall into the public works and public housing sectors. The Job Creation Law stipulates that changes to the package of laws are intended to provide convenience for the community, especially businesses in obtaining business licenses and ease of investment requirements. So, what are the key points of change in the housing and settlement law post the Job Creation Law?

First, the Job Creation Law changes the provisions on technical, administrative, spatial, and ecological requirements contained in the previous provisions to be based on standard.

Second, the opportunity for construction actor (housing developer) to convert the obligation of simple house construction into a form of funds for the construction of public housing.

Third, the change of location permit terminology to become suitability of space utilization activity (KKPR).

Fourth, the establishment of a housing acceleration agency (BP3) to realize the provision of public housing for low-income people. BP3 is formed by the central government.

Fifth, construction actor organizing residential neighborhood or ready-to-built area (kasiba) that does not separate the residential neighborhood or kasiba into a unit of residential neighborhood or ready-to-built neighborhood are subject to administrative sanctions.

Substantial changes appear to be only in the obligation to build public houses that can be converted in the form of funds and changes to criminal provision into administrative sanction. Other changes are non-essential in nature because their substance are the same as before. The changes also actually only follow the changes that have occurred in the spatial planning laws and building laws.

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