30 Aug 2019
Ministry of Agrarian Affairs Introduces Online System for Administration of Charges over Land
The Minister of Agrarian Affairs and Spatial Planning has issued a new regulation (“Reg. 9/2019,” effective 21 June 2019) to provide for the establishment of an online system for the administration of charges over land.
The term “charge” in this legal update refers to the Indonesian legal concept of “Hak Tanggungan,” that is, a security interest over land that is granted by the holder of a land title to a creditor.
The system, which will be rolled out gradually, is intended to be used by both creditors (individuals and legal entities) and officials of the Ministry of Agrarian Affair and Spatial Planning.
Reg. 9/2019 envisages that the following services will be provided online by the system:
As regards the role of notaries/authorized land title conveyancers (“PPAT”) in the process of fixing charges over land and their registration with the National Land Office (Badan Pertanahan Nasional), Article 10(2) of the Encumbrances Law (Law No. 4 of 1996) provides that a charge must be recorded in a deed drawn by a PPAT, and that this deed (and other required supporting documents) should be submitted by the PPAT to the National Land Office for registration within seven business days of its signing (Article 13(2)). This situation is maintained by Reg. 9/2019. However, deeds may now be submitted by PPAT in electronic document format, whereas previously the originals had to be submitted.
According to the letter of Reg. 9/2019, it would appear that there are no plans to make the system’s use mandatory (at least not yet). Rather, it seems that the system is intended to operate on a complementary basis to the existing manual system.
As is often the case with regulations that establish new ways of doing things, a number of the provisions of Reg. 9/2019 give rise to questions. These include the following:
It is to be hoped that these issues will be ironed out as soon as possible going ahead for the sake of both legal clarity and the effective operation of the system.
 Minister of Agrarian Affairs and Spatial Planning / Head of the National Land Agency Regulation No. 9 of 2019 on Integrated Electronic Hak Tanggungan Services (Peraturan Menteri Agraria dan Tata Ruang / Kepala Badan Pertanahan Nasional Nomor 9 Tahun 2019 Tentang Pelayanan Hak Tanggungan Terintegrasi Secara Electronik)
 Under the Encumbrances Law (see footnote 3 below) and Reg. 9/2019, an “Authorized Land Title Conveyancer” (pejabat pembuat akta tanah) is a person who is authorized by the state to make deeds for the transfer of land, deeds related to the fixing of charges over land, and deeds incorporating powers of attorney for the fixing of charges over land. In practice, a PPAT is normally a notary.
 Law No. 4 of 1996 on Charges over Land and Appurtenances to Land (Undang-undang No. 4 Tahun 1996 Tentang Hak Tanggungan atas Tanah Beserta Benda-benda yang Berkaitan Dengan Tanah)
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