Jayakarta Block 'A' Residents Association - HGB Title Extension
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Frequently Asked Questions (FAQ) From Owners

Question: I presume this will be voted as to who will control the title extension, being that it was previously another company. I would presume that it is in Jayakarta's interest to retain control of the title, whereas obviously it is the benefit of the private owners that the body corporate takes control. Do the private owners have enough votes to out vote Jayakarta and Club Bali, who also own apartments in Residence A?

Answer: When Jayakarta Block'A' was first developed, all 142 apartments were held by PT Hotel Juwara Warga (in fact, by its similarly named predecessor company), which is a subsidiary company in the Jakarta-based Pujiadi family group - the developers. By virtue of owning all 142 apartments, PT Hotel Juwara Warga was the rightful party to whom the original HGB (Hak Guna Bangunan) title was legally issued - valid until May 2015, but subject to the legal right of extension and, beyond that, renewal.

Throughout the following years, PT Hotel Juwara Warga sold off a huge number of Block 'A' apartments. The first phase of selling was mainly to Indonesian individuals, as well as to Club Bali (who, through an Indonesian holding company, now own 27 apartments in Block 'A'). The second phase of selling involved many foreign buyers, through their nominees. I bought my first one from PT Hotel Juwara Warga in 2001.

By 2005 PT Hotel Juwara Warga owned fewer than 20 apartments (now it's even fewer - just a handful) and so I realised it was no longer legally qualified to apply for the HGB extension from May 2015. More than 120 Block 'A' apartments belonged to a large number of other individuals. I researched the situation and learned that any future HGB extension would have to be applied for by a body corporate, representing the large number of apartment owners. I did most of the grunt work in 2008 and 2009, together with Notary Evi Susanti Panjaitan.

The Jayakarta Residence Block 'A' Residents Association was legally and formally established in 2010. The Jayakarta Group owners and management were a bit surprised by the successful formation of the Residents Association as a body corporate. However, they long ago acknowledged that it is the Residents Association which is legally and solely empowered to apply for the HGB extension. As for Club Bali, they are totally on board because it is as much in their interests as it is for any other owner - including you, through your nominee.

Question: This title extension is no doubt costly, what are the expected cost going to be and will be distributed evenly across all apartments?

Answer: The cost of extension is remarkably low. The total amount is based on a small percentage of the equivalent of 'rateable value' of the entire property (currently well below market value). The actual amount will not be established by the Badung Regency government until early 2015. However, if the extension were done today, the cost per apartment would be just a few million Rupiah. The equitable way to aportion the total cost is pro-rata on a square metre basis. i.e. a 90 sq. metre 2 bedroom apartment owner would incur twice the cost of a 45 sq. metre 1 bedroom apartment owner.

Question:What do you need us to do at the moment?

Answer: What to do next? Ever since 2008 I've experienced an amazing lack of response and interest from owners. Perhaps it's because they think 2015 is a long way ahead. (Big mistake!) However, what we need to do is convene an Annual General Meeting of legal owners or their appointed persons under Power of Attorney. There will be a Special Motion covering all the HGB Extension issues to be put to a vote. We need 80%-plus attendance or representation - otherwise there won't be a quorum - then a two thirds majority of the attendees to carry any vote put to the meeting.

I've emailed and sent letters to everyone for whom I have some kind of contact details - around 95% of owners. So far, only a dozen owners have actually sent back the formal contact & ownership details which I requested. This means there's now almost no hope of getting an AGM convened for April.

So, what you can do next, is please email me your completed Owner Contact Details sheet. Also, if you know other owners, please contact them and urge them to do the same - if they haven't done so already.

Question: Our Indonesian owner lives considerable distance from Jayakarta, do we need him to do anything?

Answer: I realise it will be difficult or impractical for most Indonesian nominee owners to attend an AGM. They should be guided on how to give a more appropriate person legal Power of Attorney to attend and vote. The Management Council of the Residents Association will suggest the possibility of one of their members, such as the Secretary, being granted Power of Attorney. It has to be an Indonesian since a foreigner can't hold or directly speak for a freehold strata title. (i.e. Hak Milik Atas Satuan Rumah Susun - as per your pink coloured title certificate.)