Indonesia - Regulation On Integrated Mortgage Services Through Electronic Systems.

Legal News & Analysis - Asia Pacific - Indonesia - Regulatory & Compliance - Banking & Finance

15 November, 2019




In order to improve mortgage services to achieve among other targets, disclosure, punctuality, simplicity and affordability as well as to adapt them to the development of laws, technology and public needs, the government has issued Minister of Agrarian Affairs and Spatial Planning/ Head of the National Land Agency (“MOA”) Regulation No. 9/2019 (“MOA Regulation”) on Integrated Mortgage Services through the Electronic Systems (“HT-El”), which came into effect on 21 June 2019.


Scope of the Services


HT-El is conducted by the Land Of ce and provides the following services:


  • mortgage registration;
  • mortgage transfers (eg due to the assignment of a loan);
  • change of creditor’s name; and
  • mortgage deregistration.


The users of HT-El


The users of HT-El are the following:


  • creditors (as de ned under the Mortgage Law (Law No. 4 of 1996)) who can be individuals/legal entities; and
  • Land Office officials.


Therefore, from the MOA Regulation, the application for, for instance, mortgage registration should be submitted by the creditor (previously this process was assisted by the PPAT).


In order to use the HT-El, creditors must be registered in the HT-El system, for which they must submit evidence of the following requirements online through the HT-El:


  • an electronic domicile (e-mail);
  • a Certificate of Registrationfromthe Financial Services Authority (Otoritas Jasa Keuangan / ”OJK”);
  • a written statement that they meet the requirements and criteria and an
  • acknowledgement of the provisions that apply to registered users; and
  • other requirements that the MOA may impose.


Therefore, for now, if a creditor is unable to satisfy the above requirements because for instance the creditor is a foreign party and therefore, does not hold a Certificate of Registration from the OJK, the mortgage will have to be registered manually (not online). 


General Requirements


  1. The application is submitted online and therefore, the applicant keeps the originals of the relevant documents, eg the land certificate. The applicant must submit a written statement to the effect that it takes responsibility for the validity and correctness of the data in the electronic documents submitted.

  2. The land registered under the mortgage must be registered under the name of the debtor. Therefore, the system cannot accommodate the provision of a mortgage/security by a third party.

  3. Following the submission of the application, the Land Office, through the system, will issue (i) a Mortgage Certi cate which has an electronic signature; and (ii) an annotation of the mortgage, in the form of electronic documents. The creditor can then print-out the annotation issued by the Land Of ce and have it af fixed to the relevant certificates (land certi cates or condominium certi cates). The printed-out annotation will become an inseparable part of the mortgage certificate.

  4. Mortgage certificates issued for a mortgage transfer, change of creditor or the deregistration of the mortgage, will be issued under the same numbers as the previous certificate which contain the latest data. For this, a special mark will be placed on the previous certi cate to show that the certificate is no longer valid.


Main differences


Given the MOA Regulation and current practice, the main differences between the conventional (non-electronic) and the electronic system are those in the table below. 



Conventional (Non-Electronic)

Electronic Systems


Land Deed Of cial (PPAT)

Land Deed Of cial (PPAT)


Grant a POA to the PPAT

The proxy under the POA visits the land of ce

Upload the mortgage deed to the system of the land of ce

Submit an application for a mortgage electronically

Payment for the registration of the mortgage is made through the PPAT

Pay the registration fee

Hand over copies of the mortgage deed and land certi cate to the bank

Pay the registration fee

Receive the mortgage certi cate from the PPAT on the seventh day after the registration application is submitted

Collect the mortgage certi cate from the land of ce on the seventh day after registration


Receive the mortgage certi cate electronically (HT elektronik)

The mortgage certi cate is issued in hard copy

The mortgage certi cate is issued in hard copy


The mortgage certificate will be issued automatically on the seventh day after registration

Receive the land certi cate with an annotation about the mortgage


The mortgage certi cate will be issued in PDF format with an electronic signature


The print-out of the annotation about the mortgage is af xed to the land certificate




At the moment, applications for the registration of a mortgage can be submitted either through the online system (discussed above) or manually. However, the government plans in the future, to have all applications for the registration of a mortgage submitted online. For this, the government will continuously upgrade the systems of the HT-El. 



For further information, please contact:


Kurniawan TanzilPartner, Makarim & Taira S