As of now (October 2010), the appraiser profession in Indonesia is regulated by the Ministry of Finance with a regulation in the ministry level, namely PMK No.125/PMK.01/2008 tentang Jasa Penilai Publik. (right click and save as to download). However, lately in the appraisers community, and the government of Republic of Indonesia has realize the importance of having a Law in the country level to regulate this profession.
As a comparison, Malaysia has had the law on appraiser profession since 1981, in the Laws of Malaysia, Act 242, “Valuers, Appraisers, and Estate Agents Act 1981”. Indonesia is targeting to have the law (“Undang-undang” or “UU”) about the appraisal profession in the year 2011. The talk in the Legislative (“Dewan Perwakilan Rakyat” or “DPR”) has been started since this year and it has been one of the priority.
Two decades ago, the appraisal profession is only known to a few of potential users. But now, with the advent of market-based economy, the importance of appraisers become very evident. So, in order for the profession to function and to protect all the stakeholders, including the public, a law is needed.
MAPPI or Indonesian Society of Appraisers has been a self-regulating professional society and the “gatekeeper” for this profession for a long time. MAPPI has issued the Indonesian Appraisal Standards 2007 (“Standar Penilaian Indonesia 2007” or “SPI 2007”), and Appraisal Code of Ethics (“Kode Etik Penilai Indonesia” or “KEPI) that all appraisers must obey if they want to be the member of MAPPI.
MAPPI is the only government-approved appraiser profession in Indonesia, making it the only organization overlooking the education of appraisers in Indonesia, and although not giving the license, is the prequisite for getting the appraisal license from the Ministry of Finance.