Since Corona Virus Disease 2019 (Covid-19) was declared a national disaster, the government has implemented many new policies to support the running of public services by minimizing the risk of the spread of Covid-19. These government’s policies also aim to create ease to the community in conducting administrative activities by continuing to implement health protocols during this pandemic.
One form of new policy set by the government is the issuance of Circular Letter of the Minister of Agrarian Affairs and Spatial Layout/Chairperson of the National Land Agency Number 1/SE-100. HR.01.01/II/2021 on Ease of Land Rights Determination and Registration Services during the Corona Virus Disease Emergency Response Period 2019 (Covid-19) (“Circular Letter No. 1/2021“).
The purpose of the issuance of Circular Letter No. 1/2021 is to provide implementation instructions to the Head of the Regional Office of the National Land Agency and the Head of the Land Office in order to provide ease of land services to the community during the emergency response status of Corona Virus Disease 2019 (COVID-19).
Ease of Service and Registration of Land Rights
The ease of land rights determination and registration services during the Covid-19 emergency response status stipulated in this Circular Letter includes:
- Extension of the period of registration of decision letter granting, renewal, renewal of land rights and decision letter granting management rights that have been or will expire during the emergency response status of Corona Virus Disease 2019 (COVID-19) and have not been registered with the Land Office no later than 31 December 2020; and
- Submission of completeness of validation documents proof of deposit payment of tax on the transfer of land rights in the form of Duty on Land and Buildings Acquisition (BPHTB) and / or Income Tax (PPh) during the emergency response status of Corona Virus Disease 2019 (COVID-19).
Land Service Ease Policy
Circular Letter No. 1/2021 regulates the policies of ease of land services, namely (i) the policy of ease of service for the registration decision letter, extension, renewal of land rights and decision letter granting the management right, and (ii) policy on ease of service delivery of completeness of validation documents proof of deposit of tax payments in the framework of registration of decision on the granting of land right and transfer of land right. Here is the description:
- Policy of Ease for Registration Service
Registration of decision letter, extension, renewal of land rights including registration of decision letter on the granting of management right that has been or will expire since 31 March 2020 and has not been registered at the land office no later than 31 December 2020, is given an extension period until 31 December 2021. Nevertheless, if until 31 December 2021 the recipient of right does not register the decision letter, extension, renewal of land rights or management rights, then the decision letter will be null and void.
- Policy on Ease of Service Delivery of Completeness of Validation Documents Proof of Deposit of Tax Payments
The registration service of the decision letter on the granting of land right or the transfer of land rights affected by the obligation to pay BPHTB and/or PPh can still be carried out until 31 December 2021. In the implementation of the registration, the applicant simply attaches proof of deposit or receipt of payment of BPHTB and/or PPh and bank perception that is equipped with a Statement of Strict Liability of having paid the BPHTB and/or PPh .
Registration is carried out by recording a Statement of Strict Liability in the book of land, then after the proof of validation BPHTB and / or PPh is submitted to the land office, the record in the book of land is deleted by strikethroughing it. That recording or strikethroughing is free of charge. As long as the recordsin the book of land has not been deleted, the land plot is prohibited to be transferred or encumbered. Subsequently, the validation of BPHTB and/or PPh is reported to the authorized tax service office based on the report from the Head of Land Office.
Presidential Decree Number 12 of 2020 on Stipulation of Non-Natural Disasters of the Spread of COVID-19 as a National Disaster