The Role of a Notary in Legal Transactions Apartments in Indonesia Cannot Have Certificate of Ownership (SHM) – Facts You Need to Know! The Role of a Notary in Legal Transactions

Owning an apartment is often considered a profitable investment, especially in big cities. However, did you know that apartments cannot have a Certificate of Ownership (SHM) like landed houses? The issue of apartment ownership in Indonesia often becomes controversial due to many regulations that are not well understood by the public. If you think having a certificate means you’re 100% secure, you need to read this article thoroughly!

Difference Between Regular SHM and Apartment SHM

Certificate of Ownership (SHM) is the highest form of property ownership in Indonesia that gives full rights to its owner indefinitely. However, apartments cannot have regular SHM like landed houses. Instead, apartment owners can only obtain a Certificate of Ownership of Apartment Units (SHMSRS), which has a different status from SHM for landed houses.

The difference lies in the land status:

• Regular SHM (for landed houses): The owner has full rights to the land and building above it indefinitely.
• SHMSRS (for apartments): The owner only has rights to the apartment unit, while the land follows the Building Rights Title (HGB) status, which is temporary and must be renewed periodically.

Apartment Ownership Status in Indonesia

Unlike landed houses, apartments are built on land with different statuses. Here are some ownership statuses you need to understand:

1. **Ownership Rights to Apartment Units (SHMSRS)**This is the certificate given to apartment unit owners, which legally proves ownership of that unit. However, SHMSRS still depends on the land status.
2. **Building Rights Title (HGB)**Most apartments in Indonesia are built on land with HGB status, meaning developers only have the right to use the land for a certain period (usually 30 years and can be extended). If HGB is not extended, the land status can revert to the state or previous landowner.
3. Developer’s Freehold LandIf the apartment land has developer’s freehold status, unit owners still have to depend on developer policies. This could potentially cause problems later if disputes arise or the developer goes bankrupt.

Why Are Apartment Ownership Issues Common?

There are several reasons why many apartment owners get trapped in complicated ownership issues:

1. Unclear Land StatusNot all apartment buyers understand that their certificate is only valid while the HGB status is active. If the HGB period expires and is not extended, the land status can become unclear.
2. Problematic or Bankrupt DevelopersMany apartment developers experience bankruptcy or financial problems, which affects land ownership and unit owners’ rights.
3. Disputes Between Residents and Building ManagementMany apartment residents experience conflicts with building management regarding maintenance fees, facility usage rules, and even their ownership rights.
4. Government Regulation ChangesGovernment policies regarding apartment ownership continue to change. For example, regulations limiting property ownership for foreign citizens can impact the overall apartment market.

How to Protect Yourself from Apartment Ownership Issues

To avoid getting trapped in apartment ownership problems, here are some steps you can take:

1. Check Land Status Before BuyingEnsure the apartment you want to buy stands on land with clear and legal status.
2. Pay Attention to HGB DurationIf the apartment is built on land with HGB status, ensure the developer has plans to extend these building rights.
3. Choose Reliable DevelopersBuy apartments from developers with good reputations and clear track records in property management.
4. Understand Your Rights and Obligations as an OwnerDon’t just be tempted by luxury facilities; understand the legal documents binding your ownership.

Conclusion

Apartment ownership in Indonesia is not as simple as imagined. Many legal aspects need attention to avoid problems that could be detrimental in the future. Before buying an apartment, make sure you clearly understand its ownership status. Don’t let your dream investment turn into a nightmare due to ignorance!

Have you ever experienced apartment ownership issues? Share your experience in the comments so more people can learn from real cases!