Digital Era for Land Certificates Begins

As part of a digital transformation service within the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency sector, on January 12, 2021, the Minister issued the Minister of Agrarian and Spatial Planning / Head of National Land Agency Regulation No. 1 of 2021 on Electronic Certificate (“Minister Reg 1/2021”). Minister Reg 1/2021 is intended to transform the previous offline services with respect to the provisions of land certificates in Indonesia into electronic based services.

We set out below some notable provisions under Minister Reg 1/2021 as well as expectations that can be achieved in the future with the enactment of Minister Reg 1/2021.

  • LAND REGISTRATION TO BE CONDUCTED ELECTRONICALLY

With the issuance of Minister Reg 1/2021, land registration activities in Indonesia will be conducted electronically on a gradual basis. This includes activities relating to:

  1. new land registration applications; and
  2. Maintenance of land registration data.

As a result of the above activities, it is expected that all data, information or documentation related to land, such as measuring picture (gambar ukur) land parcel map (peta bidang tanah), spatial map (peta ruang) and electronic land certificates will be stored into and processed through an electronic system data center (“Electronic System”).  The implementation of the Electronic System is also introduced in the draft Government Regulation on Right to Manage Title, Land Title, Multi-Story Housing Unit and Land Registration, which is to be issued as the implementing regulation of the Omnibus Law.

  • ELECTRONIC LAND CERTIFICATES

With the enactment of Minister Reg. 1/2021, once a plot of land is granted with a land title right, right to manage, right to own over a multi-story housing unit, mortgage, or waqf land, then such plot of land will be registered under the Electronic System and further an electronic land certificate will be issued (“el-Certificate”).

On the other hand, for plots of land that have been granted with physical land certificates (prior to the enactment of Minister Reg. 1/2021) as evidence of a land ownership title, such physical land certificates may be converted into el-Certificate by submitting an application through a land registration data maintenance service (pelayanan pemeliharaan data pendaftaran tanah).

Such application will be granted if the following data have been validated:

  • (i) Data with respect to the land ownership title holder;
  • (ii) Physical data with respect to the land (e.g., total area of the land, borders of the land);
  • (iii) Juridical data with respect to the land (e.g., land title ownership record).

Once granted, the Head of Land Office will revoke the relevant physical land certificates to be compiled with the land book and stored as the record of the Land Office.

In both circumstances above, once an el-Certificate is issued, the relevant land ownership title holder will also be granted with an access to such el-Certificate in the Electronic System.

  • LAND REGISTRATION DATA MAINTENANCE

Minister Reg. 1/2021 provides that any change to physical data (e.g., change of total land area) and/or juridical data (e.g., change of land ownership title holder, encumbrance of such plots of land) relating to plots of land that have been processed and granted with el-Certificate will be conducted through the Electronic System.

  • E-SIGNATURE ON ELECTRONIC DOCUMENTS

Any electronic document (e.g., e-Certificate) issued through the Electronic System will be ratified by an electronic signature (certified by the Electronic Certification Agency) in accordance with the applicable laws and regulations. While for a physical document that have been converted into an Electronic Document (e.g., from a physical land certificate into an el-Certificate), such documents will be affixed with a digital stamp through the Electronic System.

In addition to the above, any Electronic Document (as well as the printed Electronic Document) related to land as defined under Minister Reg. 1/2021 constitutes a valid legal evidence in accordance with the applicable procedure law (hukum acara) in Indonesia.

  • NEW FORM OF LAND CERTIFICATES

Minister Reg. 1/2021 also introduces a new format for each measuring picture (gambar ukur), spatial picture (gambar ruang), floor plan (gambar denah), spatial measuring letter (surat ukur ruang) and certificates (e.g., land certificates including for a land certificate for an above land space or a below land space) as set out under the Attachment of Minister Reg. 1/2021.

In addition to that, the new format of an electronic land certificate will stipulate certain provisions with respect to limitations, obligations that will be attached to the land title holder.

***

February 1, 2021

Please contact Inka Kirana [ikirana@aksetlaw.com] or Adhitya Ramadhan [aramadhan@aksetlaw.com] for further information.


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