Background
On 22 December 2017, Minister of Agrarian and Spatial Plan/Head of National Land Agency enacted the Minister Regulation No. 22 of 2017 on the Period Assessment of Using Power of Attorney to Charge Mortgage For Securing the Settlement of Particular Debt (“Permen 22/2017”)
Permen 22/2017 revokes the regulation of Minister of Agrarian and Spatial Plan/Head of National Land Agency officially No. 4 of 1996
Period of Power of Attorney to Charge Mortgage
The power of attorney to charge a mortgage (“SKMHT”) is valid until the expiry of the mater agreement, for the following particular types of loans:
- Debt/financing/loan rendered to micro and small enterprises customers in scale of productive enterprise which belongs to a person and/or individual firm;
- Debt/financing/loan targeted to housing procurement, namely are:
- Ownership or house, low-cost house or condominium improvement with the width of land is maximum 200 m2 (meter per square) and building’s area is no more than 70 M2 (seventy meter square);
- Ownership or improvement of ready-to-build plot of land (KSB) with a land area 54 m2 (fifty four square meters) up to 72 m2 (seventy two square meters) and credits granted is to finance the building
- Other productive Debt/financing/loan with maximum price reaches Rp. 200.000.000,00 (two hundred millions Rupiah).
For the following debt with a criteria and where its land certificate is on process, then SKMHT is valid for 3 (three) months:
- Debt/financing/loan for micro / small enterprises with credit plafond is Rp. 50.000.000, – (fifty million Rupiah) up to Rp. 250,000,000.00 (two hundred and fifty million Rupiah);
- Debt/financing/loan intended for the procurement of micro / small enterprises with land area 200 m2 (two hundred square meters) with debt/financing/loan that is not exceeding Rp. 250.000.000,00 (two hundred fifty million Rupiah) secured by land rights financed with those debt/financing/loan.
Muhammad Fajar Utama
