Housing used as a place of business

We can see that many people in Indonesia make their homes as place of business too. Sometimes the existence of this place of business can disturb the comfort of the other party. However, can residential areas or housing be used as a place of business? Then if the place of business disturbs the comfort of the other party, are there any legal remedies that can be taken?

Based on Article 49 paragraph (1) of Law Number 1 of 2011 concerning Housing and Residential Areas (hereinafter referred to as “Law No.1/2011”) states that:

"The use of a house can be used as a business activity on a limited basis without endangering and not disturbing the function of the residential."

Then in the section Explanation of Article 49 paragraph (1) of Law no. 1/2011, what is meant by “limited business” is a business activity that is allowed to be carried out at home to support the implementation of residential functions. Meanwhile, what is meant by a business activity that does not endanger and does not interfere with the function of the residential is that it does not cause environmental pollution, disasters, decreases the comfort of the residential either from the smell, sound, temperature/smoke, and garbage that can cause harm to other residents.

In Article 49 paragraph (2) Law no. 1/2011 also states that:

"The use of houses other than being used for residential functions must ensure the maintenance of housing and the residential environment."

So based on that article, it can be concluded that basically the house can be used as a place of business by the owner as long as it does not interfere with the comfort of the residential environment. However, in making the house a place of business, it is still necessary to pay attention to whether it is in accordance with the space utilization permit as stipulated by statutory regulations.

If it turns out that the use of the house as a place of business has disturbed the comfort and disturbed other residents, the residents who feel disturbed can make a complaint to the local government, which if this is proven, then based on Article 50 of Law Number 11 of 2020 concerning Job Creation which amends several provisions in Law no. 1/2011, then in Article 150 of Law no. 1/2011 states that if there are parties who do not comply with several provisions in Law No.1/2011 including Article 49 paragraph (2), they will be subject to Administrative Sanctions, such as written warnings, activity restrictions, temporary suspension, demolition, license suspension, license revocation, administrative fines, and closure.

Suria Nataadmadja & Associates Law Firm

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