In real estate transactions, it is common for investors or buyers of land to carry out due diligence of the land to confirm the correctness, accuracy and originality of the land certificate and to obtain the relevant information relating to the land, for example : if there is any encumbrance on the said land or if the land is the subject of a dispute between the parties concerned. In order to complete the land control process, applicants are required to submit an application to the land office where the land is located. This process is time consuming as applicants have to wait for the result, which can take 1-2 weeks depending on how quickly the land office releases the result.
In order to streamline the land control process and improve the use of electronic information in maintaining the land information register, the Minister of Agrarian Affairs and Land Development / Head of the National Land Agency (“BPN”) set up the service system of land registration certificates. Following the introduction of the system, the BPN issued Technical Guidelines No. 3/JUKNIS-HK.02/IV/2022 which will serve as a set of guidelines and instructions for the use of this new system (“BPN Guidelines”). In general, the BPN Guidelines define the mechanism of the application for obtaining the land registration certificate (“SKPT”) via the electronic system maintained by the BPN.
Online submission procedure to obtain the SKPT
For online submission, applicants should follow the following procedures:
- The applicant must register on a web application managed by the BPN.
- The applicant should fill in the relevant land information, such as: location, land certificate number, through the application;
- Applicant must submit the scanned copy of Land Certificate, Identity Card and Power of Attorney (if required);
- Upon receipt of the application, the system will issue the payment instruction for the applicant to pay the official SKPT issuance fee. According to Government Regulation No. 128 of 2015, the official fee for issuing SKPT is IDR/SKPT 50,000;
- The applicant must pay the SKPT fee within 3 calendar days from the issuance of the payment instruction, otherwise the application will be automatically canceled and the applicant must submit a new application;
- Once the payment is confirmed by the system, the application will be processed by the BPN agent by verifying the documents submitted and the information provided by the applicant;
- If all documents are deemed sufficient and confirm the data maintained by the BPN, the BPN will issue the SKPT to the applicant;
- However, if the documents are not sufficient or if the information does not correspond to the data kept by the BPN, the BPN will invite the applicant to go directly to the BPN to bring the required documents for validation. Once manual validation is complete, the BPN will issue the SKPT to the applicant.
Offline app status
Although the new online system has been introduced, the BPN guideline states that applicants are still allowed to submit the application for SKPT issuance directly to the BPN office. So far, it is unclear if the BPN will fully switch to online application.
Implementation in practice
Based on our discussion with some Land Titles Agents (PPATs) in Jakarta, it is correct that the SKPT can now be applied through the online system administered by the BPN. However, the integration of manual (offline) data with electronic data has not been fully synchronized, therefore, in some cases, PPATs are still required to visit the BPN office for validation. Even though it may take some time for the government to complete the integration of land data, the move to electronic system can be seen as a major development to speed up the SKPT process in Indonesia so that the parties involved do not need to physically return to the BPN. office and can obtain the SKPT in a relatively shorter time.