Property Developer

A property developer is a business entity that specialises in developing residential properties such as villas or apartments. They can be privately-owned or government-owned and are responsible for overseeing the entire development process, including land acquisition, planning, construction, and marketing. 

Legalities of a Property Developer ​

Property developers operate under several key laws and regulations that govern land use, construction, real estate transactions, environmental impact, and business operations

• Basic Agrarian Law No. 5 of 1960: Regulates land ownership, acquisition, and foreign ownership restrictions.
• Building Law No. 28 of 2002: Sets building safety, technical standards, and construction permits.
• Law No. 26 of 2007 on Spatial Planning: Governs land use, zoning, and development within national/regional plans.
• Law No. 32 of 2009 on Environmental Protection: Requires Environmental Impact Assessments (AMDAL) for large projects.
• Law No. 20 of 2011 on Flats: Regulates the development and sale of apartment units.
• Law No. 2 of 2017 on Construction Services: Covers contractor licensing and project management standards.
• Omnibus Law No. 11 of 2020: Simplifies business licensing, land acquisition, and permits for property developers.
• Ministerial Regulations (PBG and SLF): Requires Building Permits (PBG) before construction and a Certificate of Feasibility (SLF) post-construction.
• Law No. 40 of 2007 on Limited Liability Companies: Governs company formation and management for developers.
• Tax Laws: Includes VAT on sales, Land and Building Tax (PBB), and income tax on profits.
• Manpower Law No. 13 of 2003: Sets labor regulations for hiring construction workers and personnel.

These laws ensure property developers comply with legal, safety, environmental, and business standards.

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