Indonesia – Introduction To The Electronically Integrated Land Mortgage Services.

28 February, 2020

 

On 21 June 2019, the Ministry of Agrarian Affairs and Spatial Planning/Head of the National Land Agency of the Republic of Indonesia (Kementerian Agraria dan Tata Ruang/Kepala Badan Pertanahan Nasional Republik Indonesia or “MoA”) enacted MoA Regulation No. 9 of 2019 on the Electronically Integrated Land Mortgage (Hak Tanggungan) Services (“MoA Reg 9/2019”). The aim of the enactment of MoA Reg 9/2019 is to simplify the manual registration procedure as regulated under Law No. 4 of 1996 concerning Land Mortgage (Undang-Undang Hak Tanggungan or “UUHT”) as well as to enhance the land mortgage services and ensure the principles of transparency, timeliness, efficiency, accessibility and affordability.

 

The regulation introduced a new integrated electronic system for the land mortgage (hak tanggungan) registration services (“e-HT System”) as an alternative registration procedure for land mortgage. Rather than relying on the older mechanism which requires the registration and documents to be submitted manually, this e-HT System will manage and store all registration information through an integrated electronic system.

 

Provisions under MoA Reg 9/2019 encompasses

 

(i) the implementation of e-HT System;

 

(ii) the mechanism of e-HT System services;

 

(iii) suspension of the services; and (iv) data validation.

 

Land mortgage under Indonesian Law

 

A land mortgage (hak tanggungan) is a type of security under Indonesian law created over immoveable property such as lands, buildings or other fixtures on land. It must be made in a prescribed statutory form of a land mortgage deed and, once executed, to perfect the security created by a land mortgage, the mortgagee (or creditor) must register the land mortgage deed with the National Land Office where the land is located. A Land Mortgage Certificate (Sertifikat Hak Tanggungan) will be issued to the mortgagee as the evidence of perfection.

 

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