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Regulation on Integrated Mortgage Services through Electronic Systems 

by Tesalonika Barus

Published: October, 2019

Submission: 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 Office and provides the following services:

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


The users of HT-El

The users of HT-El are the following:

  1. creditors (as defined under the Mortgage Law (Law No. 4 of 1996)) who can be individuals/legal entities; and
  2. 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:

  1. an electronic domicile (e-mail);
  2. a Certificate of Registration from the Financial Services Authority (Otoritas Jasa Keuangan/”OJK”)
  3. a written statement that they meet the requirements and criteria and an acknowledgement of the provisions that apply to registered users; and 4. other requirements that the MOA may impose.
  4. 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).

Written by Kurniawan Tanzil and Tesalonika Barus, read about the details of the regulation by clicking the button below.


Link to article





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