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.
While electronic documents and electronic signatures have long been used in Indonesia, it was not until this regulation that electronic land registration and land certificates became possible. Under the previous manual land system, there were often delays in the land registration process and accessing data on land given that each land office has its own unwritten policy. This long awaited decision of introducing regulation on electronic land registration and certificates will simplify the land registration procedure, and make the process of obtaining information about land easier.
Introduction of Electronic Land Registration
MOA Regulation No. 1 of 2021 on Electronic Certificates (“MOA Regulation 1”) introduces electronic land registration.
Land registration can now be carried out electronically for (i) first-time land registration and (ii) maintenance of land data. The land registration will be done through an electronic system. The results of land registration are data, electronic information and electronic documents, which will be stored in the electronic system database.
While under MOA Regulation 1 electronic land registration is optional, the introduction of electronic land registration and electronic land certificates should have an overall positive impact on the land system in Indonesia.
Operation of Electronic System for Land Registration
The electronic system for the implementation of land registration comprises (i) data collection, (ii) data processing and (iii) data presentation. The results of the electronic system are electronic documents, which can be divided into two categories:
- electronic documents issued through the electronic system
- documents that are transferred from other media into electronic documents
Electronic documents issued through the electronic system will need to be validated by an electronic signature. Documents that are transferred from other media into electronic documents will need to be validated by authorized officials and given a digital stamp through the electronic system.
Issuance of Electronic Land Certificates
First-Time Issuance of Electronic Certificates
Electronic certificates can be issued (i) for first-time registration of unregistered land or (ii) to replace existing land certificates for registered land.
First-time Registration for Unregistered Land
The procedure for first-time registration of unregistered land through the electronic system comprises (i) physical data collecting and processing, (ii) proof of rights and bookkeeping, (iii) issues of certificates, (iv) presentation of physical data and juridical data and (v) storage of public registers and documents.
Electronic land certificates will be stored in the electronic system database, which will be in an electronic land book (buku tanah). Once the land is registered, the owner of the land will be given (i) an electronic land certificate and (ii) access to the electronic land certificate in the electronic system.
Replacement of Physical Land Certificates
Land certificates that have already been registered can also be replaced with electronic certificates. The replacement can be done by applying for land registration data maintenance services.
The replacement can only be done if the physical and juridical data in the land book and certificates are in accordance with the physical and juridical data in the electronic system. If not, a validation will be conducted on the rights holder’s data, physical data and juridical data of the land.
Moreover, the replacement also includes the conversion of land books, survey documents and/or drawings of floor plans of apartment units into electronic documents. The replacement will be recorded in land books, survey documents and/or drawings of floor plans of apartment units. The physical land certificate will be withdrawn from the public and stored as a document in the relevant land office. The scan version of the physical land certificate will be stored in the electronic system database.
Maintenance of Land Data for Electronic Certificates
For maintenance of land data, MOA Regulation 1 facilitates any changes to juridical data and/or physical data of plots of land that have been issued in the form of electronic certificates through the electronic system.
Numbering of Electronic Land Certificates
New electronic land certificates will have a new certificate number. The numbering style for land certificates is numeric, starting from number one, and it applies for:
- first-time land registration certificates for unregistered land
- replacement of registered land certificates with electronic certificates
- registration of separation, splitting and consolidation of land parcels
- changes in physical data that result in an increased number of plots of land
The numbering style for any changes to the juridical data and/or physical data of first-time electronic certificates will start from number two.
Source: Baker & Mckenzie