Minister of Law and Human Rights Regulation Number 25 of 2021 concerning The Procedure for Registration, Amendment, and Elimination of Fiduciary
On 13 July 2021, the Government issued Minister of Law and Human Rights Regulation No. 25 of 2021 on Procedures for Registration, Amendment, and Elimination of Fiduciary (“MOLHR Reg No. 25/2021”) which was enacted on 19 July 2021. MOLHR No. 25/2021 is expected to facilitate the society in order to obtain loans by using the fiduciary.
Generally, the provisions of MOLHR Reg No. 25/2021 are concerning the measures to register, amend or withdraw the fiduciary in order to obtain loans. MOLHR No. 25/2021 is revoking the Minister of Law and Human Rights No. 10 of 2003 concerning the Procedure for Electronic Registration of Fiduciary (“MOLHR Reg No. 10/2003”) and the purpose of this rule is to support the application of the following laws:
1. Law No. 42 of 1999 concerning Fiduciary (“Fiduciary Law”);
2. Law No. 39 of 2008 concerning State Ministry (“Law No. 39/2008”);
3. Government Regulation No. 21 of 2015 concerning the Procedure for Registration of Fiduciary Guarantee and Fee for Making Fiduciary Guarantee Deed (“GR No. 21/2015”);
4. Government Regulation No. 28 of 2019 concerning the Types and Tariffs of Non-Tax State Revenue Applicable to the Ministry of Law and Human Rights (“GR No. 28/2019”);
5. Presidential Regulation No. 44 of 2015 concerning Ministry of Law and Human Rights (“PR 44/2015”).
Notably, this new MOLHR Reg No. 25/2021 includes four alterations, including:
1. Implementation of “Access Rights” which was not provided under MOLHR Reg No. 10/2003. This Access Rights is the privilege given to the fiduciary applicant in an online account along with the username and the password to log in. This is a new provision under MOLHR Reg No. 25/2021, as there is no explanation on how exactly people may fill the form to apply for fiduciary in MOLHR Reg No. 10/2003.
The Access Rights is classified into three categories, among others (i) Access Rights for Notary, (ii) Access Rights for Company (divided into 3 more categories: commercial banks, non-bank financial services companies, and companies with other businesses), and (iii) Access Rights for Individual. These provisions facilitate not only Notary but company and individuals may apply for fiduciary also.
Separately, the requirements to obtain Access Rights were different compared to the previous regulation, as it is more specifically stated for each category. There will also be a time period for the granting of the Access Rights, which is effective for a year for the company and 60 (sixty) calendar days for individuals, which may also be extended.
2. Upon the fiduciary applicant obtaining the Right Access, the application may be submitted electronically.
3. The fiduciary applicant can apply for refinement of the data within 30 (thirty) calendar days from the date of the Fiduciary Certificate being issued. If the applicant notices the inaccurate information after 30 (thirty) calendar days period following the submission, the applicant cannot apply for the refinement, instead, the fiduciary applicant shall ask for the amendment of the fiduciary certificate.
4. Prior to MOLHR Reg No. 25/2021, the elimination or withdrawal of the Fiduciary Certificate may be implemented through written registration to the MOLHR. However, under the MOLHR Reg No. 25/2021, the elimination may be implemented by merely notifying (applicant to provide the reasons) such withdrawal to the Ministry within 14 (fourteen) calendar days after the fiduciary is removed through the online system. In addition, there is no need to attach the certificate of settlement originating from the fiduciary recipient, certificate of relinquishment of rights, or certificate of revocation of the fiduciary security. The revocation of the fiduciary is important as the fiduciary object may not be included as fiduciary in the future as long as the previous fiduciary has not been withdrawn.
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