Client COVID-19 INSIGHTS CENTER/ Newsflash
BPN Allows Ease to Extend Land Titles and Land Registration in Response to the COVID-19 Pandemic
The Minister of Agrarian Affairs and Spatial Planning/Head of National Land Agency (Kementerian Agraria dan Tata Ruang/Badan Pertanahan Nasional or “BPN”) issued its Decree No. 88.1/SK-HR.01/IV/2020 dated April 16, 2020 on Extension of the Validity of Land Titles and the Registration for Granting, Extension, or Renewal Decrees of Land Titles that Have Expired or Will Expire during the Coronavirus Disease 2019 (COVID-19) Emergency Status Period (“Decree 88/2020”). As a guidance to implement this Decree, BPN also issued its Circular Letter No. 7/SE-100.HR.01/IV/2020 dated April 17, 2020 on Ease of Granting and Registration Services of Land Titles during the COVID-19 Emergency Status Period (“Circular Letter 7/2020”). Both the Decree 88/2020 and the Circular Letter 7/2020 (collectively, “Land Services Policy”) apply retroactively to March 31, 2020.
Through the Land Services Policy, the BPN provides stimulus in the land sector to anticipate the economic fallout and to release the burden of land titles application during the COVID-19 pandemic by extending the duration of land titles validity and registration of granting, extension, or renewal decree of land titles up to December 31, 2020 and by simplifying the documentation requirement for registration of granting and/or transfer of right decree over land titles.
- Granting Services of Land Titles
In the current exceptional circumstances, the BPN has shown its efforts in taking measures to avoid physical contact between BPN officials and applicants. Under the Land Services Policy, land titles that have expired or will expire as of March 31, 2020 are automatically extended up to December 31, 2020 without the requirement of following any registration procedures as should be carried out by the land titles owners.
The land titles applicable for this relaxation are limited to: (i) right to cultivate (hak guna usaha); (ii) right to build (hak guna bangunan); and (iii) right to use (hak pakai).
However, the Land Services Policy will not be applicable for land titles that expired before March 31, 2020.
In addition, the eligible land titles owners who wish to exercise their rights after December 31, 2020 should apply for an extension of land rights before December 31, 2020. Failure of such application will result in the expiration of the land titles.
- Registration Services for Granting, Extension, or Renewal Decree of Land Rights
In addition to the above, BPN also extends the registration period for granting, extension, or renewal decrees of land titles that have expired or will expire as of March 31, 2020 up to December 31, 2020.
The eligibility consideration for this land relaxation measures as provided under the Land Services Policy is if it remains valid up to March 30, 2020.
Please note that land titles holders of granting, extension, or renewal decree should also register such decree before December 31, 2020 to avoid the decree being declared null and void. Should the decree become null and void, land titles holders will have to reapply for the granting, extension, or renewal decree to the BPN.
- Documentation Requirement for Registration of Granting and/or Transfer of Right Decree over Land Titles
Previously, land titles holders were required to submit a validated evidence of Duty on the Acquisition of Rights over Land and Building (Bea Perolehan Hak Atas Tanah dan Bangunan or “BPHTB”) or income tax (pajak penghasilan or “PPh”) payment in order to complete the registration process of granting and/or transfer of right decree over land titles.
Given the urgency to ensure that social distancing is still carried out, BPN relaxes the document submission requirement so that land titles holders are no longer required to obtain validity of tax payment from the relevant tax offices prior to the registration of granting and/or transfer of right decree over land rights.
Pursuant to the Circular Letter 7/2020, BPN acknowledges that the following documents will suffice:
- BPHTB and/or PPh proof of payment; and
- Stamped statement letter in accordance with the format provided in the Circular Letter 7/2020.
This exemption is valid until December 31, 2020.
May 20, 2020
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