JPI Encourages Government to Fix Building Permit Rules

Jakarta, February 28, 2017 - The Jakarta Property Institute (JPI) study found that there are at least 25 regulations related to the building permit process in DKI Jakarta. Some of these regulations are conflicting and there are even new regulations that remove old provisions without being re-regulated in the new regulations. This results in uncertainty and legal vacuum in the application in the field.

The study also shows that most of the problems are at the level of governor regulations. If left unchecked, this will risk the growth of the property/real estate industry, which has declined over the past five years, as well as the economic growth of DKI Jakarta, which has a significant contribution to the national economy.

One of the significant regulatory issues is the legal vacuum for levying fines on building owners who conduct construction activities before or without a Building Construction Permit (IMB). This occurs because DKI Regional Regulation No. 1/2015 on Regional Retribution abolished the fine formula previously stipulated in DKI Regional Regulation No. 3/2012.

JPI Executive Director Wendy Haryanto said the study aims to help the government map out the complex issue of building permits. "We believe that if this study is followed up, it will have a positive impact on bureaucratic efficiency and accelerated development that can boost Jakarta's economic growth rate."

The results of this JPI study have also been submitted to the DKI Jakarta One Stop Integrated Service (PTSP) Office and several stakeholders both in government, practitioners, and developers in DKI Jakarta.

Head of PTSP Edy Junaedi responded positively and accepted the JPI study as input to improve current regulations. "The current regulatory position is not ideal to pursue economic growth. Now is the right moment to improve and adjust to the needs."