After paying off a mortgage (KPR) or a property-backed loan, one important step that is often overlooked is obtaining a Roya Letter. This document ensures that the property certificate is clean and free from encumbrances (Hak Tanggungan or security rights).
This article provides a comprehensive explanation of what a Roya Letter is, its function, requirements, procedures, and estimated costs.
What Is a Roya Letter?
A Roya Letter is an official document issued by the National Land Agency (BPN) confirming that the security rights (Hak Tanggungan) on a land or building certificate have been removed because the debt has been fully paid.
This process is known as the deletion of security rights in the land register and certificate. It means that the debtor’s name is no longer burdened by debt and can conduct property transactions more easily.
The Roya process is regulated under Law No. 4 of 1996 on Security Rights Over Land and Objects Related to Land.
Functions of a Roya Letter
A Roya Letter serves several important functions, providing both legal protection and financial benefits to property owners. These include:
1. Proof of Debt Settlement
The Roya Letter serves as official proof that the property owner has fully repaid their debt to the creditor. As such, the security rights previously attached to the land are officially released.
2. Freeing Property from Encumbrances
Once issued, the Roya Letter confirms that the land is entirely free from debt obligations. This allows the owner to freely conduct transactions such as selling or transferring ownership without legal obstacles.
3. Increasing Property Value
Land or property with a Roya Letter generally has a higher market value. This is because the document proves that the property is no longer tied to any debt obligations, making it more attractive to buyers and investors.
Requirements for Obtaining a Roya Letter
To process a Roya Letter at the BPN office, the following documents are required:
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Completed Roya application form signed on a duty stamp.
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Loan settlement letter/roya referral from the bank, issued after installments are fully paid.
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Photocopy of the owner’s ID card (KTP).
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Photocopy of Family Card (KK).
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Original land/building certificate (SHM/SHGB).
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Certificate of Security Rights (HT) or a Roya consent letter if the HT certificate is lost.
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Photocopy of the Deed of Granting Security Rights (APHT).
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Additional documents such as Taxpayer Identification Number (NPWP), latest property tax (PBB) receipt, or documents from a notary (if required).
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Power of attorney (if represented).
It is important to ensure the bank documents are complete, as applicants often have to make repeated visits to the bank just to obtain a settlement letter.
How to Process a Roya Letter
According to Law No. 4 of 1996 on Security Rights, Roya Letters are not issued by banks but by the National Land Agency (BPN).
You can process it either directly at the local BPN office or online via their official system.
1. Processing a Roya Letter at the BPN Office
Steps to process a Roya Letter directly:
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Prepare all required documents in advance.
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Take a queue number and submit the application at the service counter.
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Fill in the warkah cover form or name transfer form provided.
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If the creditor institution’s name has changed, attach a copy of supporting documents to the application folder.
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Return all documents to the roya counter.
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Wait for the payment order, then complete the payment.
The official fee for Roya applications at BPN is IDR 50,000, with an estimated processing time of about 5 working days. Payments are made to the state treasury through the BPN counter or official application.
Additional costs may apply if you use a notary or third-party service to assist. These fees generally range from IDR 500,000 to IDR 1,000,000 per application, depending on the agreement.
Applicants should also prepare small administrative costs, such as for duty stamps, photocopies, document legalization, and transport or banking fees. While smaller than the main costs, these should still be considered to avoid delays.
2. Processing a Roya Letter Online
If visiting the BPN office is not possible, you can apply online through the official site: https://htel.atrbpn.go.id/.
Steps include:
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Log in using your registered account.
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Go to Services, select Roya, then click Create New File.
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Enter complete details such as security rights number, year, and relevant codes.
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Upload required documents, including the security rights certificate.
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Review details of the certificate, rights holder, and last notes.
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Save the data and proceed with payment.
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Once payment is complete, the application will be processed by BPN, and the Roya Letter will be issued according to regulations.
Departments and Legal Services Involved
Several parties are usually involved in the Roya process to ensure compliance with legal procedures:
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Bank or Financial Institution: Issues the settlement letter after the mortgage is fully paid.
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Notary/PPAT (Land Deed Official): Assists in preparing documents and ensures the property is debt-free.
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National Land Agency (BPN): The authorized institution that officially removes the security rights from the land register and certificate.
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Property Legal Services (optional): Hired by those who prefer not to handle the process themselves. More costly but practical and less risky.
A Roya Letter provides legal certainty that your property is debt-free and ready for various uses, including transactions and investments.
Once the Roya process is completed, your property certificate is officially clean from encumbrances. A debt-free certificate not only increases property value but can also be reused as collateral for financing.
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