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Electronically Integrated Mortgage Services

By July 28, 2020 No Comments

Background

On 8 July 2020, Minister of Agrarian Affairs and Spatial Planning/National Land Agency (“ATR/BPN”) in the Ministry of ATR/BPN Commanders Meeting has informed that commencing from 8 July 2020 on 12PM, the conventional mortgage services will be closed and will be changed to electronically integrated mortgage services.
Electronic mortgage (“HT-el”) is stipulated under Ministry of ATR/Chief of BPN Regulation No. 5 of 2020 on

Electronically Mortgage Services (“Permen ATR/BPN 5/2020”). HT-el is implemented to enhance the services on mortgage which meet the principles of openness, timely dependable, rapidity, ease and affordability of public services, also to adapt the growth of laws, technology and society needs.

Type of Services and Object of HT-el

Type of services that can be submitted to HT-el are as follow:

  1. Mortgage registration;
  2. Transfer of mortgage;
  3. Creditor’s name changes;
  4. Removal of mortgage; and
  5. Data correction.

HT-el submission is conducted by a creditor through HT-el electronic system. For submission of registration or transfer of mortgage, the required documents are submitted by a PPAT. Whereas for submission to change creditor’s name, removal of mortgage, or data correction, the required documents are submitted by a creditor.

Deed of mortgage and its requirement documents as mentioned above is submitted by PPAT through electronic system partner integrated with HT-el system. All documents shall be kept by PPAT. In submitting the required documents, PPAT shall also provide statement letter of its responsibility of the validity of the submitted electronic document data of which format must be in accordance with the annex in Permen ATR/BPN 5/2020.

HT-el Services Procedure

HT-el system will issue receipt of submission for each submitted application of HT-el. The fee for HT-el services is calculated based on provision of Non-tax Revenue of State applicable in the Ministry of ATR/BPN.

Next, the submission is proceeded after the application data and payment have been confirmed by the HT-el system. If the payment cannot be confirmed by the system, the creditor may confirm directly to the agrarian office or customer service of HT-el.

The chief of agrarian office or other appointed authority shall examine and verify the compliance of the submitted documents and the concept of HT-el certificate before issuing the HT-el product. If there is any incomplete or incompatible document, the creditor and/or PPAT should be notified immediately to complete the documents in no later than 5 (five) days commencing from the date of submission is accepted by the HT-el system.

The said authority is deemed to have granted approval and/or legalization if they do not conduct the examination and verification of the submitted documents and the HT-el certificate concept until the seventh days after the submission is accepted, and HT-el product shall be issued.

The product of HT-el is issued in a form of electronic document, which are:

  1. HT-el certificate;
  2. Notes of mortgage in the book of land rights or condominium ownership rights;
  3. Notes of mortgage in the land certificate or condominium ownership certificate.

Notes of mortgage in the book of land rights or condominium ownership rights is conducted in the electronic book by the chief of agrarian office or appointed authority. Whereas the record of mortgage in the land certificate or condominium unit ownership certificate is conducted by the creditor in the mortgaged certificate. The record in such mortgaged certificate will be integral to the land certificate or condominium unit ownership certificate.

For the second level of mortgage registration and afterwards, HT-el certificate will be issued under new serial number. For the transfer of mortgage, creditor’s name changes, removal of partial mortgage (roya parsial), or data correction, HT-el certificate will be issued under the same serial number with the latest data change. Whereas for the removal of full mortgage (roya penuh), the previous HT-el certificate will be stamped with specific sign declaring that the certificate is no longer valid.

If the loan has been fully paid, the removal of full mortgage is conducted by the creditor through HT-el electronic system.

HT-el certificate data correction can be submitted if there occurs error in data insertion when in application of HT-el that is known after it is issued. The correction can be submitted in not more than 30 (thirty) days commencing from the issuance date of the said HT-el certificate. The fee for this HT-el service is calculated based on the provision of Non-tax Revenue of State applicable in the Ministry of ATR/BPN.

Rejection or Revocation of Mortgage Services Submission

The submission for HT-el may be rejected for the following reasons:

  1. There exists a seizure and/or blockage is occurring during the service of HT-el; or
  2. Any other reason in accordance with the prevailing laws.

Cancellation of HT-el service application is declared as cancelled if there occurs an emergency event out of control of man (force majeure) and/or certain circumstance which causes disturbance on the HT-el electronic system and the HT-el product cannot be issued.

If there is a cancellation of HT-el service application, the creditor may re-apply and the previous paid costs may be used for the replacement of service costs of HT-el provided that it has the same registered subject and object. If it is not fulfilled, then the payment will be refunded to the creditor.

Ghazi Luthfi