APHT and SKMHT: The Mortgage over Land When You Take a Home Loan in Indonesia

An APHT (akta pemberian hak tanggungan, deed granting a hak tanggungan) is a PPAT (land deed official) deed that places a hak tanggungan (mortgage over land) on a house or land as security for a loan, including a KPR (kredit pemilikan rumah, home loan). If the APHT cannot be made yet, for example because the certificate is not yet in the borrower's name, the owner gives the bank a power of attorney through an SKMHT (surat kuasa membebankan hak tanggungan, power of attorney to grant a hak tanggungan) to make the APHT later. Once the APHT is registered, the bank has priority over the house until the loan is repaid and the hak tanggungan is removed (roya).

Hak tanggungan in a home loan: what it means for the borrower

Hak tanggungan is governed by UU 4/1996. For the borrower, several points should be understood:

• The house still belongs to the borrower. The certificate stays in the borrower's name; the hak tanggungan is recorded in the land book and on the certificate.
• The bank has priority. If the borrower defaults, the first-ranking holder of the hak tanggungan may sell the property by public auction on its own authority and take repayment ahead of other creditors (Articles 6 and 20).
• Executory force. The hak tanggungan certificate bears the heading "DEMI KEADILAN BERDASARKAN KETUHANAN YANG MAHA ESA" ("For justice based on belief in the One Almighty God") (Article 14).
• It follows the property. The hak tanggungan stays attached even if the house changes hands, so selling a house that is still mortgaged needs the bank's consent.

The APHT: its contents and how it is signed

The grant of a hak tanggungan is preceded by a promise in the loan agreement, and is then made with an APHT drawn up by a PPAT (Article 10). The APHT must state the identity of the grantor and the holder of the hak tanggungan, the debt secured, the secured value, and a description of the property (Article 11(1)). The APHT may also contain covenants, for example a restriction on letting the property or an obligation to insure it (Article 11(2)).

Two terms come up often:

• Secured value (nilai tanggungan): the maximum amount secured, often set higher than the loan principal to cover interest and costs.
• Ranking (peringkat): the order of hak tanggungan where one property is pledged to more than one creditor (Article 5).

For a resale house, the AJB (akta jual beli, the sale and purchase deed) and the APHT are usually signed on the same day. This is possible because the grantor's authority need only exist at the time the hak tanggungan is registered (Article 8(2)), so the AJB is registered first and the hak tanggungan afterwards. The AJB process is explained in AJB requirements for land and buildings.

The SKMHT: when it is used and its time limits

An SKMHT is used when the owner cannot attend or the APHT cannot be made yet, for example because the certificate is still in the developer's name, is being split, or is being transferred. Under Article 15 UU 4/1996, an SKMHT:

• must be made as a notarial deed or a PPAT deed;
• contains only a power to grant a hak tanggungan, with no other power and no right of substitution;
• clearly states the property, the amount of the debt, and the identity of the creditor and the debtor;
• cannot be revoked and does not end except by being used or by expiry of its term.

Time limits: for land that is already registered, the SKMHT must be followed by an APHT within one month at the latest; for unregistered land, within three months. If the time passes, the SKMHT is void by law (Article 15(3), (4), (6)).

The exceptions are set by Permen ATR/BPN 22/2017 (Regulation of the Minister of Agrarian Affairs and Spatial Planning/National Land Agency). The SKMHT remains valid until the loan agreement ends for, among others, micro and small business loans, and loans to buy or improve a basic house, a simple house or an apartment with a land area of at most 200 m² and a building area of no more than 70 m². Many home loans in large cities exceed these limits, so they remain bound by the one- or three-month limit.

Electronic registration of the hak tanggungan

Since 2020, hak tanggungan services have been carried out electronically (HT-el) under Permen ATR/BPN 5/2020:

1. The bank as creditor files the application through the HT-el system.
2. The PPAT submits the APHT and the required documents electronically no later than seven working days after signing (Article 13(2) UU 4/1996; Article 114 Permen ATR/BPN 3/1997 as amended by Permen ATR/BPN 16/2021).
3. The Kantor Pertanahan (Land Office) examines the file and issues an electronic hak tanggungan certificate within seven calendar days at most after the documents are declared complete.

The hak tanggungan comes into being on the date of the hak tanggungan land book entry, which is the seventh day after the required documents are received in full (Article 13(4)–(5) UU 4/1996). On an electronic certificate, this encumbrance is recorded as a new data block in the electronic land book.

After the home loan is repaid: roya

The hak tanggungan ends when the debt is repaid (Article 18). However, the entry in the land book does not disappear by itself; it must be struck out through roya (Article 22). After repayment, the bank issues a letter confirming full repayment and a statement that the hak tanggungan has ended. The removal is then processed through the HT-el service.

Documents to prepare

The borrower as grantor of the hak tanggungan

• KTP (identity card) and kartu keluarga (family card)
• Marriage certificate, and the spouse's consent if the house is marital joint property (Article 36 UU 1/1974); prenuptial or postnuptial agreement if any
• Original certificate, or access to or an official copy of the electronic certificate
• SPPT PBB (annual land and building tax assessment) and proof of payment
• Loan agreement with the bank

The bank as holder of the hak tanggungan

• Identification and proof of authority of the bank's attending representative, for example a power of attorney from the board of directors

Frequently asked questions