An Overview On The Indonesian Land E-Mortgage Registration By Electronic System

Introduction

In response to improve the transparency and efficiency of mortgage implementation, Ministry of Agrarian and Spatial Planning has enacted Regulation Number 5 of 2020 concerning Mortgage Registration in Electronic Services ("E-Mortgage"). Below we highlight key and issues under current situation of mortgage implementation under new regulation:

Land Mortgage under Indonesian Laws

Mortgage Rights is a security right imposed on land rights, as one of the instruments of material security right which is complementary to a loan agreement between creditor and debtor.

Before providing further information on the mortgage mechanism, please be informed that under the Indonesian Laws, the Mortgage Rights only be granted for all forms of immovable property, such as land and buildings or other fixtures that are deemed integrated with the land.