08 August 2023

Nia Mahesa & Co (“NMCo”) has advised and represented the Owners (“Clients”) in filing a lawsuit against one of the developers at the South Jakarta District Court.

Developers as of commercial properties, residential apartments, and retail properties in Indonesia, do not carry out their legal obligations and/or carry out agreements in good faith as stipulated in the applicable laws and regulations, to Clients who have paid all Apartment unit prices since 2019.

In the Verdict, the developer is proven to have committed an Unlawful Act. Based on these actions the South Jakarta District Court has cancelled the Letter of Order Certificate for the Client’s Apartment unit and punished the Developer to indemnify and return all the money paid by the Client.

The NMCo team is led by Partner Nia Sita Mahesa and supported by Associate Mipa Sere Sumantri Sitohang.

Partner Nia Sita Mahesa commented: “Violating the principle of good faith is an unlawful act which has a cause and effect as a result of the actions committed, namely bringing harm to the Plaintiffs, so the Plaintiffs have legal reasons to cancel the agreement and/or certificate of order by returning it to its original state (corrective justice) because the Defendant has violated the principle of good faith in carrying out the agreement, namely by carrying out the execution which was not caused by the Plaintiffs’ fault”.

Associate Mipa Sere S Sitohang commented: “The violation of good faith mentioned above has fulfilled the elements of an unlawful act, namely violated decency and violated the legal obligations of the Defendant. As referred to in Article 1338 of the Civil Code (KUHPerdata), namely an agreement must be implemented in good faith”.

NMCo. has also provided advice on several settlements for developers’ legal obligations including but not limited to completing building permits, land acquisitions and legal assistance related to buying and selling property in Indonesia. This reinforces NMCo’s strong footprint in the real estate sector (and property in general) in Indonesia.