Electronic Land Certificates Become Bank Loans? AHY: Sure Can
JAKARTA - Minister of Agrarian and Spatial Planning (ATR)/Head of the National Land Agency (BPN) Agus Harimurti Yudhoyono (AHY) guarantees that electronic land certificates can become collateral to collect credit at banks.
"Can this electronic certificate be used to obtain business capital assistance from banks? Of course it can," AHY quoted Antara as saying.
AHY explained that the electronic land certificate issued by the Ministry of ATR/BPN now has the same principles as the previous certificate of ownership (SHM). It's just that, with the transition to electronics, public certificate data is registered and well stored in the ministry system.
"This is in line with the spirit of digital transformation, so that everything is more transparent, accountable, and safe," he said.
So far, there has been no integration of electronic land certificate data with banks. However, AHY said that this electronic certificate is expected to provide better convenience for banks in channeling credit.
AHY also reminded residents who want to apply for credit to the bank and use their land certificates to become collateral so that they can use credit wisely. In fact, if possible, the credit submitted aims to provide added economic value.
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"Don't be consumptive, because it's not healthy for the family economy. But, if it's for something productive, including helping business capital, that's good. That way, the economy can grow and people's income can also be better," he said.
The Ministry of ATR/BPN is intensifying the implementation of electronic land certificates throughout Indonesia in the context of digitizing data and controlling land administration. To date, there are 1,112,879 electronic land certificates that have been issued by 465 land offices throughout Indonesia.
The handover of electronic land certificates door to door by Minister AHY aims to ensure that the Complete Systematic Land Registration program (PTSL) runs well and the community gets legal certainty on the right to land.