LEGAL UPDATES BY BEPARTNERS
New Era of Electronic Land Certificate
30 March 2021

In the midst of the rapid development of the digital era, which has been able to facilitate and expedite numerous legal processes, the government views this as an excellent opportunity to reform and improve the system for land registrations and certification. What was normally completed through the manual processes is now seeing the transition to everything electronic.

 

Through the Minister of Agrarian and Spatial Planning Regulation No. 1 of 2021 concerning Electronic Certificates ("MASP Regulation No. 1/2021"), the government tries to make a breakthrough by imposing electronic land registration and granting certificates of land rights electronically. This is in line with what is mandated in Law No. 11 of 2020 concerning Job Creation, which regulates that that evidence of land rights, ownership rights to apartment units, management rights, and security rights, including deeds of transfer of land rights and other documents related to land can be in electronic form. It is hoped that the implementation of electronic land registration can make it easier to realize the modernization of land services that can increase the indicators of ease of doing business and public services to the community.

 

New Mechanism for Registration and Issuance of Electronic Land Certificates

 

Prior to the implementation of electronic registration and electronic land certificate, the government has made a breakthrough by enforcing electronic mortgage registration which is regulated through the Minister of Agrarian and Spatial Planning Regulation No. 5 of 2020 concerning Electronically Integrated Mortgage Services. Further reading can be found through our previous article titled “Mortgage Transitions to Electronical Era”.

 

The government has now made the final step in the land sector by implementing an electronic system for registration and issuance of electronic certificates of land rights, management rights, ownership rights to apartment units or waqf land through the enactment of MASP Regulation No. 1/2021.

 

Land registration activities accommodated by this MASP Regulation No. 1/2021 includes conducting land registration for the first time and maintaining land registration data. Meanwhile, what is meant by land registration based on this regulation is the process of: (i) data collection; (ii) data processing; and (iii) data presentation. Through an electronic-based registration, this will cut the bureaucratic system accelerating the land registration process.

 

Practicability and efficiency of this newly introduced mechanism will most likely improve the records. BY having the data stored in the Electronic System Database, this will also minimize the issuance of several of the same land certificates reducing land disputes and enable the land office to monitor data and minimize the issuance of several of the same land certificates.

 

Furthermore, the data presentation from the results of electronic land registration is in the form of an electronic land certificate set out in the form of an electronic document. The issuance of an electronic certificate (“el-certificate”) is currently granted for first-time land registrations (land that has not been never been registered) and the replacement of a land certificate to become an el-certificate (land that has already been previously registered). In the event that the issuance of an el-certificate is carried out to replace the analogue/conventional certificate, the Head of the Land Office will withdraw the old certificate to be integrated with the land book and will be stored as a document at the land office.

 

The data contained in electronic documents are as stipulated in the table below:

 


  

As a form of validation, ownership of electronic documents issued is legalized by using an electronic signature in accordance with the prevailing laws and regulations. It is hoped that the use of electronic signatures will be able to eliminate counterfeiting in the process of making analogue / conventional soil certificates.

 

Closing Remarks  

 

With the implementation of the land registration system through an electronic system, it is hoped that it will be able to prevent double ownership where two parties claim to have the exact same land registration and certification. Additionally, by electronically storing all data relate to land registration and further protected through the use of electronic-signatures will further reduction in bureaucratic issues.

 

All in all, this will increase and expedite the legal process of issuing, replacing, keeping records thereof all certificates related to land. Improving the access to data, information and/or electronic documentation related to land certification. Should a land certificate be damaged or lost – due to this new electronic regime, it would be as easy as reprinting the certificate again. Of course, provision of legal documentation related to the certificate would be necessary in order to obtain a re-print of the land certificate.

 

Should there be any queries related to how this specific regulation may affect your business or personal interests please do not hesitate to contact us.

 

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