Remarks of the President of the Republic of Indonesia at the Handover of Land Certificates and the Launching of Electronic Land Certificates at the State Palace, Special Capital Region of Jakarta, December 4 2023

Bismillahirrahmanirrahim.
Assalamuálaikum warahmatullahi wabarakatuh.
Good afternoon,
May peace be upon us all,
Om swastiastu,
Namo Buddhaya,
Greetings of Virtue.

Distinguished Head of the Supreme Audit Agency;

Distinguished Minister of Agrarian and Spatial Planning/Head of the National Land Agency and other Ministers in attendance, the Indonesian National Police Chief, Attorney General, Chairperson of the Corruption Eradication Commission, Governor of Jakarta and other Governors, Regents, Mayors in attendance;

Ladies and Gentlemen.

We all know that in our country there should be 126 million [land] certificates owned by public, by the citizens. However, in 2015, when I asked the Minister of Agrarian and Spatial Planning at that time, there were only 46 million. So, out of 126 million, only 46 million issued to the public. It means that there are still 80 million plots of land areas without land certificates. Therefore, it is understandable if there are many land conflicts, agrarian conflicts, because 80 million certificates have yet to be issued to the people.

Then I asked the Minister at that time, ‘How many land certificates can be issued by the National Land Agency in a year?’ The answer was only around 500,000 per year, meaning that people have to wait another 160 years to receive land certificates. Once again, 160 years. Who wants to wait that long? Raise your hand, I’ll give you a bicycle. 160 years. But with the ability we have,  a total of 109 million land certificates have already been handed over to the public to date.

Earlier, I asked the Minister, ‘How many land certificates will be issued by 2024?’ The Minister, not me, promised that around 120 million certificates will be issued, meaning that about 6 million are left. That’s what we call hard work. I also noticed that officers at the BPN offices work until late night. That’s how it should be; providing services to our people.

And today, we officially launch Electronic Land Certificates, which was marked by  handing over 2,550,800 certificates to landowners across Indonesia. We will continue to maintain this speedy service and I also want to ensure that everyone has received their certificates. And for those who have received certificates, please raise your hand. Okay, please lower your hand now. I don’t like it when it comes to symbolic handover ceremony. For the example, we only handed over 12 certificates to recipients here, but not to other recipients. So I will ensure that besides 12 people here, other recipients will also receive their certificates.

So, what are these certificates used for? It will affect banking sector, significant. It is because there will be a vast number of certificates that are used as collateral for bank loan to have working capital. For those who already hold certificates, who wants to use them as a collateral for bank loan? You might feel a bit hesitant. It is okay since there will be many who want to use them as collateral later. But please, if someone wants to use them as collateral for a bank loan, calculate it properly—calculate the installments, the interest bill, the principal bill, calculate the profit of the business, and calculate everything. Do not let the certificates be confiscated by the bank in a year or two. Be cautious.

I would like to extend my gratitude to Ministry of Agrarian and Spatial Planning/Head of the National Land Agency for providing land service digitalization through electronic land certificates, an implementation of the concept of digital service. Earlier, I was also surprised that the certificate only has one sheet. I asked the Minister; Can this also be used as collateral for bank loan? The Minister said that it can be used as collateral, but I also have to ensure the banks. Yes, it is possible; everything should go digital nowadays. The banking sector is already ahead [in terms of digitalization], there should be no problems.

And I order all ranks at the Ministry of Agrarian and Spatial Planning/Head of the National Land Agency throughout Indonesia to disseminate the information about the service to the public, not only people in cities but also people in rural areas across our country. Please provide information as clearly and comprehensively as possible, so people will understand. This Electronic Land Certificate is important considering that it can reduce the risk of loss, theft, or damage due to disasters, fires, and other calamities. For the Government, it will facilitate data management, save transaction costs, and improve data confidentiality and security.

I also call on all ministries and institutions, including the Indonesian National Defense Forces (TNI) and the Indonesian National Police (Polri), state-owned enterprises, and regional governments, to improve administration for governance and to safeguard assets to prevent land issues. There also should be no more passive assets that are neglected.

I also would like to express my gratitude to all ranks at the Ministry of of Agrarian and Spatial Planning/Head of the National Land Agency for monitoring land certificate through comprehensive systematic registration program (PTSL). And I would like to extend my congratulations to all recipients.

That concludes my remarks on this auspicious occasion. By saying bismillahirrahmanirrahim, I officially hand over and launch the Electronic Land Certificate.

I thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh.

(AP/RAS/LW)