New Building License released by MEF warns advertisers of promoting unlicensed project on social media
On January 2020, the Ministry of Economy and Finance (MEF) issued Prakas No. 089, a new building regulation which amended and extended the rules and procedures relating to housing developer license.
Under Prakas No. 089, it differentiated between three different types of licenses or permits depending on the activity performed by the real estate developer:
- Residential development business license/permits;
- Co-owned building development business license/permits; and
- Land parcel development business license/permits.
The Prakas directly emphasized that these three activities are subject to obtaining a license or permit if the real estate developer performs a business activity for a sale or long term leasing (i.e., a lease with a duration of between 15 and 50 years). However, it seems that license or permit shall not be required if the developer performs the business operation for a short term lease (i.e., lease shorter than 15 years).
Also, The MEF released a statement warning projects under the progress that haven’t obtained the proper building license will result in facing immediate legal actions. The warning stretched to companies or individuals advertising unlicensed projects, particularly on social media.