Electronic Land Certificate: Definition, Advantages, and How to Create

Through the regulations of the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), the government will convert land certificates into electronic certificates or "E-Certificates" (Electronic Land Certificates). These provisions are governed by Ministerial Regulation No. 1 of 2021 concerning "Electronic Certificates".

So, what is an electronic land certificate? Let's delve further into electronic land certificates, how they are created, and their advantages.

1. What is an Electronic Land Certificate?

Before discussing further about how to create an electronic land certificate, you should understand more about the legal basis that defines electronic land certificates.

1.1 Legal Basis of Electronic Land Certificates

In the provisions of the Electronic Transaction Information Act (ITE) No. 11 of 2021 concerning Electronic Certificates, the definition of an electronic certificate is any form of information contained in an electronic certificate and reinforced by an electronic signature, particularly demonstrating data and identity up to the legal subject status for the parties therein, which in this case is conducted by authorized parties responsible for the administration, namely individuals or legal entities proficient in validating and auditing electronic certificate data.

According to the Ministry of Defense Regulation regarding "Certificates," specifically Regulation No. 1 of 2021 concerning land registration, it states: "Documents in electronic form commonly known as Certificates, then in this case referred to as electronic certificates."

1.2 13 Cities Implementing Electronic Land Certificates

Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN) Hadi Tjahjanto stated that the latest developments regarding electronic land certificate policies are ongoing. He explained that the development of the program continues, and 13 regencies/cities have been declared 'complete' as priorities for fully implementing electronic land certificates. This statement was made by Hadi at the Sheraton Grand Jakarta Gandaria City Hotel on Wednesday (10/1/2024).

According to detikcom, the following are a number of regencies/cities that have earned the 'complete' predicate:

1. Denpasar City, Bali
2. Madiun City, East Java
3. Bontang City, East Kalimantan
4. Tegal City, Central Java
5. Surakarta City, Central Java
6. Yogyakarta City, DI Yogyakarta
7. Central Jakarta Administrative City, DKI Jakarta
8. Badung Regency, Bali
9. North Jakarta Administrative City, DKI Jakarta
10. West Jakarta Administrative City, DKI Jakarta
11. Bogor City, West Java
12. Metro City, Lampung
13. Balikpapan City, East Kalimantan

2. Objectives of Creating Electronic Land Certificates

The implementation of electronic land certificates is carried out gradually, from state-owned assets, regional-owned assets, state-owned enterprises, legal entities, places of worship, to 12 to 13 complete regencies/cities, then throughout Indonesia. The objectives of electronic land certificates are essential for the community due to the following reasons:

2.1 Reducing the Risk of Loss and Damage

The main purpose of using electronic land certificates is to reduce the risks that may arise due to loss, theft, or damage caused by disasters, fires, and other threats. By using electronic format, the security and integrity of information related to land ownership can be more effectively maintained.

2.2 Ease in Data Management

The implementation of electronic land certificates also aims to facilitate data management. With electronic processes, land-related data can be handled more efficiently, saving costs, and improving the confidentiality and security of data. Thus, the accuracy and availability of land ownership information can be better maintained.

3. Advantages of Electronic Land Certificates

Electronic land certificates offer several significant advantages in various aspects. Some of them include:

3.1 Efficiency in Issuance Time

Electronic land certificates provide advantages in terms of efficiency in issuance time. The process of issuing certificates becomes faster and more efficient, reducing waiting times typically associated with the production of physical documents. This can accelerate property transactions and provide direct benefits to certificate holders.

3.2 Ease in Defense Administration Processes

Another advantage of electronic land certificates lies in the ease of administrative processes, particularly related to buying and selling transactions and encumbrances. With electronic formats, administrative processes become smoother, reducing the complexities often associated with physical documents. This can help property owners, stakeholders, and relevant agencies process documents more efficiently.

3.3 Minimizing Risks of Counterfeit and Duplicate Certificates

Electronic land certificates also provide additional security by minimizing the risks associated with counterfeit and duplicate certificates. Electronic formats allow for the adoption of more sophisticated security technologies, such as digital signatures and data encryption. This can provide stronger protection against certificate forgery attempts, thereby increasing trust in property transactions and the authenticity of land ownership documents.

Also Read: Cost of Transfer of Name of Land Certificate and How to Calculate It

4. Form, How to Create, and How to Replace Electronic Land Certificates

4.1 Form of Electronic Land Certificates

Image Source: detikcom

In the upcoming electronic land certificates, various elements will be used, such as hash codes, QR Codes, single identity, and all the provisions for their use will be explained, including obligations and prohibitions, the use of electronic signatures, and document formats.

Quoted from the official Ministry of Agrarian Affairs and Spatial Planning/National Land Agency accounts on Twitter and Instagram, here are the details of the form of electronic land certificates:

1. The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency logo will be arranged parallel to the Garuda Emblem.
2. The Type of Right will be adjusted to the land rights to be granted.
3. The Field Identification Number (NIB) will become a Single ID referring to all land registration activities.
4. The unique code/hashcode will serve as a unique identification for the issued electronic document, linked to the edition of the electronic document issuance.
5. RRR (Right, Restriction, and Responsibility) will be included in the certificate.
6. The Land Field Image will be accompanied by a description of the survey letter and a QR Code leading to the Electronic Survey Letter.
7. The attention section will contain information regarding the provisions of electronic documents to certificate holders in the form of these electronic documents.
8. The QR Code will become the encrypted data ID of the e-certificate used to access information directly from the e-certificate through the system provided by the Ministry.
9. Fine wavy line patterns will become the background of the electronic certificate, reflecting a pattern of continuous service (continuity). The Ministry logo watermark will be placed in the middle, along with a pattern of red-colored writing on the left side of the document.
10. Electronic signatures will be introduced in a modern classic style, including a specimen signature form equipped with the Land Office stamp.
11. The BSHE emblem as the provider of electronic signatures. BSHE is the agency responsible for electronic signature services.

4.2 Requirements and Procedures for Registering Electronic Land Certificates

This regulation applies to land that has not been registered, involving a series of activities that include the collection and processing of physical data, proof of rights, land book recording, certificate issuance, as well as the presentation and storage of general lists and documents through the electronic system.

Also Read: House Certificate Pledge Terms and Other Things to Consider

1. The activities of collecting and processing physical data involve electronic documents such as:

a.     Measurement drawings

b.     Land parcel maps or spatial maps

c.     Land survey letters, floor plan drawings for apartment units, or space survey letters

d.     Other documents resulting from the collection and processing of physical data

2. Land that has had its boundaries determined in systematic or sporadic registration will be given a land parcel identification number.
3. Proof of ownership rights to land is done using written evidence in the form of electronic documents issued through the electronic system, and/or documents that have undergone media conversion into electronic documents.
4. The collection and examination of juridical data are carried out through several electronic documents.
5. Land that has had its rights determined or has the status of waqf land will be registered through the electronic system and electronic certificates will be issued.
6. The rights holder or trustee will be provided with an electronic certificate along with access as a result of this process.

4.3 Requirements for Changing Electronic Land Certificates

The transformation into electronic land certificates is only possible for land parcels that have been recorded and have been issued a Certificate of Land Rights, management rights, ownership rights to apartment units, or waqf land.

1. This replacement process can be accessed through a request for land registration data maintenance services. Replacement can only be carried out if the physical and juridical data in the land book and certificates match the information documented in the electronic system.
2. In case of discrepancies, the Head of the Land Office will validate through data of rights holders, physical aspects, and juridical aspects. The process of changing into electronic land certificates, or e-certificates, involves the inclusion of changes to land books, survey letters, and/or floor plan drawings for apartment units in electronic document form.
3. Subsequently, these changes will be recorded in the land book, survey letters, and/or floor plan drawings for apartment units. The Head of the Land Office is responsible for withdrawing the certificates, which are then combined with the land book and become deeds stored in the Land Office.
4. All deeds will undergo a media conversion process in the form of scanning and stored in a database for recording and archiving purposes.

Here's what can be conveyed about electronic land certificates, Sobat BFI. It is important to note that BFI Finance provides financing with home certificate collateral if you need initial capital for your business. BFI Finance is a financing company that provides multi-purpose loans with collateral such as motorcycle registration certificates, car registration certificates, and home or shop certificates for your needs. Apply for financing at BFI Finance, with a quick and easy process. BFI Finance provides conventional credit financing with collateral that can be your solution.