RDTR 2022 and Rules for Flat Residents

Published in Bisnis Indonesia Daily, November 12, 2022 edition

The revision of Jakarta's urban planning regulations through Governor Regulation Number 31 of 2022 concerning the Spatial Detail Plan (RDTR 2022) brings fresh air to the realization of affordable vertical housing. The goal of providing affordable housing can be realized with a note: regulations governing residents of existing flats or vertical housing also need to be revised.

The revision of the rules for residents of flats is needed because one of the biggest changes in Jakarta's latest RDTR is that Jakarta will become a city with the concept ofmixed-use development in one area. The 2022 RDTR now stipulates that a lot of land in Jakarta changes from single function to mixed function.

The potential problem arises when there is more vertical housing, but the regulations are not yet in line with Jakarta's goal to increase the mixed-use concept. The mixed-use concept allows Jakartans to live in vertical housing, work, and do activities in one area. The concept allows people - who have been forced to live in the suburbs due to the high price of housing in Jakarta - to return to live in Jakarta.

In Jakarta, the occupancy of flats is regulated by Governor Regulation Number 70 of 2021 concerning the Management of Owned Flats. In order to avoid problems with the snowball effect in the future, there are at least three points that need to be revised in the regulation.

First, election voting rights. In Governor Regulation No. 70, voting rights for elections are calculated based on the majority vote. Owners only have one vote even if they own more than 1 (one) flat unit in the same building.

In fact, in flats with the concept of mixed-use functions, management under the same Association of Owners and Residents of Flat Units (PPPSRS) actually creates poor governance. Mixed-use developments have different maintenance methods for each function. The residents of the flat units cannot make decisions for the owners of the shopping center or offices located at the bottom of the building. The same applies vice versa.

Second, the disconnection of basic facilities. Article 102 C of the regulation states that if there are problems in the flat environment, PPPSR or managers are prohibited from taking action to limit or disconnect basic facilities. Disconnection of basic facilities such as electricity and clean water is related to the obligations and rights of residents of flat units.

Tenants of flats need to understand their obligations and rights to ensure the maintenance of vertical residential buildings. The prohibition of disconnecting basic facilities creates injustice for residents who obey the rules. Article 102C has the potential to be used by irresponsible residents to deliberately not pay management fees. There needs to be a special solution for each problem that occurs in vertical housing.

Third, the management transition period. Governor Regulation No. 70 states that the transition period from the Developer to PPPSRS is one year from the first delivery of the sarusun to the owner. The transition period is too short. In practice, the period of sale of flat units varies greatly. When economic conditions are down, the sales rate slows down. On the other hand, the developer must continue to care for and maintain the unsold flat units so that they continue to sell. The handover of management of flats to PPPSRS in a short period of time has the potential to result in incompetent governance and result in unmaintained facilities in the flats.

Vertical housing is the future of Jakarta. Improving PPPSRS regulations is increasingly necessary so that public confidence in vertical housing increases. The price of landed houses is increasingly expensive and no longer affordable. The government's housing policy is currently only targeting Low-Income Communities. People outside this class, the fulfillment of their housing is left to the market mechanism.

The Residential Property Price Index (IHPR) for small houses, according to Bank Indonesia records, has been higher than that of medium and large houses from 2012-2021. If the data is projected to 2045, the small house price index will increase up to 3.5 times compared to the index in 2012.

The policy of providing housing is not just about determining spatial zoning and building construction. The long chain of affordable housing provision must prepare the occupancy process. It is time for Jakarta to stop making policies that "treat" when the problem is already complex. The great aspiration of RDTR 2022 to create affordable housing should be supported by other regulations. Otherwise, affordable vertical housing in Jakarta will remain a wishful thinking.