9 Important Things About the Certificate of Functioning (SLF)

January 5, 2019

Are you planning to buy vertical housing?

Housing as an investment or a place to live is indeed in great demand today. However, before deciding to buy vertical housing in Jakarta or other cities in Indonesia, it is better to know some important things about the completeness of residential certification from developers.

Being involved in property issues has made me learn how complicated the building licensing and certification process is. Unfortunately, the public as consumers still lack information regarding this issue. In fact, this also has a direct impact on them.

In one case, for example, the buyer or occupant of a flat does not have a Flat Unit Right Certificate (SHSRS) as a guarantee of ownership of a vertical building, even though the unit has been handed over from the developer to the buyer.

One of the main causes of the absence of SHSRS is developers who have not yet obtained a Certificate of Fitness for Function (SLF) from the local government. In fact, the Certificate of Functioning, which is sometimes called a Certificate of Appropriateness, is an absolute requirement for developers to take care of SHSRS by first conducting an accounting and separation of each unit, and making a deed of separation.

Given the importance of the Certificate of Occupancy (SLF), here are some things that prospective buyers need to know.

1.What is a Certificate of Fitness for Purpose?

A Certificate of Functioning (SLF) is a certificate for a building that has been completed and has met the technical feasibility requirements according to the function of the building. Without a Certificate of Functioning, the building cannot operate legally.

The Certificate of Functioning is regulated in the Regulation of the Minister of Public Works and Housing of the Republic of Indonesia No. 27/PRT/M/2018 on Certificate of Functioning of Building.

2.Classification of Certificate of Fitness for Function (SLF)

The Certificate of Occupancy (SLF) is classified based on the type and area of the building, as follows:
- Class A for non-residential buildings above 8 floors

- Class B for non-residential buildings of less than 8 floors

- Class C for residential buildings more or equal to 100m2, and

- Class D for residential buildings less than 100m2.

3.Application for Certificate of Functioning (SLF)

How do I apply for a Certificate of Occupancy (SLF)? Answering this frequently asked question, the SLF application is made through DPMTSP.

Every building owner can apply for SLF through the Jakarta Capital Investment and One-Stop Integrated Services (DPMPTSP) counter at the sub-district, sub-department, or agency level. The difference in processing counters is based on the class of building for which the SLF is requested, as described in the SLF classification above.

4.Issuance of a Certificate of Functioning (SLF) requires recommendations from several agencies

In connection with the requirements for building facilities and utilities that need to be met to obtain an SLF, developers need recommendations from several agencies.

The government agencies and bodies that determine the issuance of SLFs are the Manpower Agency, the Jakarta Fire and Rescue Agency and the State Electricity Company (PLN).

5.Fulfillment of obligations prior to obtaining a Certificate of Occupancy (SLF)

To apply for a Certificate of Functioning (SLF) for buildings above 8 floors and/or above 5,000 square meters (m2), the developer needs to submit proof of fulfillment of obligations from the developer to the city in the form of public facilities and social facilities (fasum fasos) before applying for the SLF.

6.Temporary Certificate of Functioning (SLF) as a substitute for Definitive SLF

For developers who experience obstacles in fulfilling obligations to the city related to the processing of a Certificate of Functioning (SLF), they can apply for a Temporary SLF before applying for a Definitive SLF. The validity period of the Temporary SLF is 6 months.

7.Period of validity of Certificate of Functioning (SLF)

The validity period of a building SLF is 5 years for non-residential buildings and 10 years for residential buildings. Then, does the SLF have to be extended? Of course it is necessary. Before the validity period expires, the building owner must reapply for the SLF extension. This SLF extension application must be accompanied by a report on the results of the Building Technical Assessment by a technical assessor from a developer who has a Building Technical Performer License (IPTB) in the field of Building Assessment.

8.Impact of no Certificate of Functioning (SLF)

Without SLF, the developer cannot issue a Sale and Purchase Deed (AJB), cannot open a bank branch in the building, cannot form a Flat Tenants Association (PPRS), and cannot collect maintenance fees from tenants.

9.Completeness of residential certificates

In addition to the Certificate of
Occupancy(SLF), buyers should check the following certifications from the developer: Building Rights Title (HGB) certificate, Building Construction Permit (IMB) letter, Land Use Permit (SIPPT) letter, and Flat Unit Rights Certificate (SHSRS). To be more valid, checking can be done by visiting the relevant agencies.

Before deciding to buy vertical housing, it's a good idea to find out more about the completeness of building certification, whether it's the Certificate of Occupancy or other certificates as mentioned above. To avoid potential problems that will harm yourself, be sure to ask for information about the completeness of the building certificate from the selling company or related agencies.

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