IPL is not a sacred number, but a calculation result.
Many apartment residents and owners assume that the IPL (Environmental Maintenance Fee) is a fixed figure that cannot be disputed. Once set, it is assumed that it cannot be lowered, only increased year after year. However, legally, logically, and mathematically, this assumption is incorrect.
The IPL is not the selling price of the property. It is the result of calculating all operational, maintenance, and upkeep costs for the apartment, which are shared among the owners or residents. This means that as long as these costs can be reduced, streamlined, or corrected, the IPL can also be legally and reasonably lowered.
This is what is often not explained to residents: the IPL is not a matter of "whether you like it or not, you have to pay this much," but rather whether the underlying fees are reasonable, efficient, and transparent.
Legal Basis: IPL Must Be Efficient and Transparent
In PP No. 13 of 2021, the cost of managing flats is borne by the owner or occupant, taking into account:
- operational costs
- maintenance
- maintenance
And most importantly, these costs must be managed in a way that:
- orderly
- effective
- efficient
- transparent
- responsible
The terms “efficient” and “transparent” have legal meaning. If the costs:
- Too expensive for no clear reason
- The contract was not disclosed
- The tender was not transparent
- Cannot be compared with market prices
Therefore, legally, the cost is flawed in its management principles. This means that it is not only permissible but also mandatory to evaluate it. If the evaluation results show waste, the IPL should automatically be reduced.
There is not a single article stating that a predetermined IPL cannot be reduced.
Logically: IPL is a derivative of costs
Simply put, the IPL is derived from the following formula:
Total operational costs + maintenance + maintenance + reserves
divided by the number of units or NPP
= IPL per unit
If:
- Security contracts can be more affordable
- Cleaning can be re-tendered
- Elevator maintenance is more cost-effective
- Electricity savings in common areas are reduced
- Waste is eliminated
Then the numerator in the formula decreases. If the numerator decreases, the final result will decrease. This isn't a matter of opinion, it's a mathematical law.
So, if costs can be reduced but the IPL remains high, there are two possibilities:
- Efficiency measures are not implemented
- or efficiency measures are implemented but the results are not returned to the citizens
Both are contrary to the principles of sound management.
Official Mechanism: IPL Reduction Through PPPSRS and RUTA
Lowering the IPL can't be done by shouting in a WhatsApp group. It must go through an official mechanism.
The order should be:
First, disclose cost data.
Contracts, invoices, actual expenses, and cost components must be accessible.
Second, conduct an analysis.
Compare with market prices, other vendors, or reasonable standards.
Third, make a data-based proposal.
Not just "expensive," but "expensive because of this, this, and this."
Fourth, submit it to the RUTA (Regional Budget Plan).
As an official agenda item, not an addendum.
Fifth, decide by voting.
According to PP 13/2021 Article 97, for management matters, votes are based on the NPP.
If enough votes are cast, the decision is valid and binding, including the decision to lower the IPL.
Why is it often said that you can't get off the ground?
Reasons that often arise:
- "This is the standard for other apartments."
- "If we lower it, the quality will decrease."
- "This is cheaper than other apartments."
- "The residents have agreed."
- "It's always been this way, so it's been this way."
The problem is, none of these have any legal or mathematical basis.
"Compared to other apartments" is not a valid reason if:
- Other apartments are not transparent
- The costs are also problematic
- Or the conditions are not the same
Quality doesn't automatically decrease when costs decrease. Quality only decreases if efficiency is implemented haphazardly. However, if efficiency is achieved through fair tendering and strict oversight, quality can remain the same or even improve.
Are Building Insurance Costs Included in the IPL Component?
The answer: it can go in, and usually does.
Building insurance protects:
- Building structure
- Common facilities
- Fire risk
- Certain disasters
- Major damage
Because it benefits all owners and occupants, building insurance premiums are generally included in the management costs, which are then shared through the IPL.
However, there are important caveats:
Insurance costs must also:
- Transparent
- Contracts are visible
- Reasonable premiums
- According to the insured value
- No mark-ups
If premiums are too high without a clear basis, then this component also deserves to be evaluated and reduced, which could ultimately lower the IPL.
Insurance is not an excuse for high IPL. Moreover, there are usually commitment fees for agents. Therefore, citizens need to monitor whether these commitment fees are being channeled into the administrator's account. Insurance is for protection, not for waste.
IPL Could Go Down, But It Won't Go Down Alone
The IPL won't be dropped just because people complain. It will be dropped because:
- Data disclosed
- Costs analyzed
- Waste discovered
- Mechanisms implemented
- Votes won
As long as residents don't know where the IPL comes from, its composition, and their voting rights, the IPL figure will always be "taken at face value."
In fact, as explained in the main pillar of the apartment IPL, this contribution is not simply an obligation, but the result of an agreement that must be based on law, logic, and real calculations.
To understand the complete structure of the IPL, its legal basis, and how it should be calculated, also read the main pages on:
Conclusion: A reduction in billing is valid if the basis is correct.
Lowering the IPL is not an act of defiance against management. On the contrary, it is part of sound management.
If costs can be kept reasonably low, then:
- Residents feel more at ease
- Payment compliance increases
- Conflicts decrease
- Apartment values increase
A fair IPL isn't just about cheapness, but also about reasonableness, transparency, and accountability. And as long as the underlying costs can be reduced, legally, logically, and mathematically, there's always a possibility of lowering the IPL bill.
Also read about Apartment IPL – Where It Comes From, Who Determines It, and How It Should Be Calculated
: - Apartment IPL: Voting Rights and Cost Calculation
