Understanding SHM Certificates in Detail: Benefits, How to Process, and How to Check Their Legality

When you own a property, your concern should not only be about its physical specifications. There are a series of administrative matters that must be considered, including the certificate. In this context, let’s take a closer look at SHM, one of the types of land certificates in Indonesia.

According to an article published on the official LPJK website (buletinlpjk.id), SHM or Sertifikat Hak Milik (Certificate of Ownership) is the highest and strongest proof of land ownership, valid indefinitely and transferable by inheritance.

The regulation governing this is stated in UUPA No. 5 of 1960, Article 20, which explains that ownership rights over land are hereditary, the strongest, and most complete rights that a person can have over land.

More About SHM Certificates

An SHM certificate contains complete data regarding the legal owner of the land. Some key details included are:

Owner’s name
Land area
Property location
Land shape illustration
Names of adjacent landowners
Certificate issuance date
Name and signature of the authorized official
Official stamp as proof of authenticity

Under current law, this certificate can only be owned by Indonesian citizens, usually verified through legal identification such as a national ID card (KTP) or equivalent documents.

The Certificate of Ownership (SHM) is officially issued by the National Land Agency (BPN) through a Land Deed Official (PPAT). This is regulated under Government Regulation No. 37 of 1998 concerning the Position of Land Deed Officials, which grants PPAT the authority to create authentic deeds regarding land rights.

A Brief Overview of Other Types of Land Certificates

SHM is one of at least seven types of land certificates recognized by Indonesian law. Here’s a quick explanation of the other six:

Hak Guna Usaha (HGU), Defined in Article 28 Paragraph 1 of the Basic Agrarian Law as the right to cultivate land controlled directly by the state for a certain period, usually for agriculture, fisheries, and livestock.
Hak Guna Bangunan (HGB), The right to construct and own buildings on land that does not belong to you. Based on Law No. 5 of 1960, the term is 30 years and can be extended for another 20 years.
Hak Pakai, Refers to Article 41 Paragraph 1 of Law No. 5 of 1960, defined as the right to use and/or collect benefits from land controlled by the state or owned by another person, under conditions set by the granting authority or agreed upon in a contract, provided it does not conflict with the law.
Petok D (Letter D), A requirement for converting customary land ownership into full ownership rights.
Letter C, according to the Journal of Law and Social Politics by Ayu Lintang Priyan Andari et al., this document serves as proof of land ownership recorded at the village or subdistrict office.
Surat Girik, Proof of land status as “Girik,” indicating that the holder only has the right to manage the land and pay taxes, without actual ownership rights. Under the Agrarian Law, Girik land is recognized as customary land.

Advantages of SHM Certificates Compared to Other Land Certificates

An SHM (Sertifikat Hak Milik / Freehold Title Certificate) is generally recognized as having a stronger legal position compared to other types of land certificates. It represents full ownership rights without a specified expiration period, making it a widely used form of proof of land ownership and often associated with long-term value.

Below are some commonly noted advantages of an SHM certificate when compared to other land rights:

Has a stronger legal status when compared to HGU (Right to Cultivate) and HGB (Right to Build).
May be used for various purposes such as leasing, transfer of ownership, inheritance, temporary pledging, or as collateral, subject to applicable laws and regulations.
Does not have a fixed validity period; ownership remains effective as long as it complies with legal provisions.
Generally simpler to process in transactions such as sale or inheritance, provided all legal requirements are fulfilled.
Offers a clearer legal framework that can help minimize potential ownership disputes in the future.
Often associated with stable ownership status, which may support its long-term value.

Due to these characteristics, SHM certificates are commonly sought after. However, it is important to understand the procedures and requirements for obtaining an SHM certificate in accordance with current regulations.

How to Manage and Verify SHM Legality

So, how do you process an SHM certificate? And how can you ensure that the SHM involved in a transaction is truly legal and valid under the law?

Requirements and Steps to Create SHM

To create an SHM certificate, you need a set of legal documents as the main requirements. These include:

Original HGB certificate or land ownership document.
Personal identification (KTP and Family Card).
Copy of Building Permit (IMB).
SPPT PBB (Land and Building Tax Notification).
Land ownership statement letter.

Additional requirements apply for name transfer of SHM for heirs or in buying and selling activities. These documents include:

Original land certificate.
Deed of Sale and Purchase for property transactions.
Land history certificate.
Certificate of no dispute.
Certificate from the local village office.
Inheritance certificate (for heirs).
Death certificate of the deceased owner (for heirs).

Steps to Create SHM

Visit and apply at the ATR/BPN office with all required documents.
Land measurement by BPN officers.
Approval of the measurement letter signed by the relevant official.
Certificate verification by Research Officer A, involving BPN and local village officials.
Announcement of juridical data at the village office based on review results.
Issuance of SHM by BPN.
Payment of Land Rights Acquisition Fee.
Registration of Rights Decree for Certificate Issuance.

For complete details, you can visit the BPN or local office directly.

How to Check SHM Legality

In any transaction involving SHM, you must ensure the authenticity and legality of the certificate. Verification can be done online or offline at the BPN office.

Online Check via ATR / BPN Website:

Visit www.atrbpn.go.id.
go to Publication menu.
click Services.
Choose Document Check.
Fill in the requested data.
Click Search Document and wait for the results.

Check via Sentuh Tanahku App:

Download the Sentuh Tanahku app.
Register and activate your account.
Login and choose Certificate Info or BPN Document Check.
Enter certificate details and scan the QR Code on the electronic certificate if available.

Offline Check:

Visit the BPN office with the original certificate, KTP, and PBB proof.
Go to the certificate verification counter and state your purpose.
The fee is around Rp50,000, and results are available within one working day.

Ensure Your SHM Certificate is Authentic for Long-Term Peace of Mind

Verifying that the SHM certificate used in any transaction is authentic and legally valid is essential to ensure the transaction complies with the law. Beyond that, it provides you with comfort and protection in the future, because once authenticity and legality are confirmed, the SHM truly becomes your full ownership right.

In line with the spirit of guaranteeing long-term protection and peace of mind, it’s also wise to have additional protection in the form of the right Home Insurance, such as those offered by PT AXA Insurance Indonesia (AXA Insurance).

Introducing SmartHome Insurance, a home insurance product from AXA Insurance. This insurance provides coverage for property or belongings in case of damage or loss that results in financial loss, as well as legal claims from third parties. You will receive protection benefits according to the policy terms. Complete, practical, and guaranteed protecting your home with AXA Insurance products complements your long-term peace of mind, just like ensuring the authenticity of your SHM certificate.

Reference:

https://buletinlpjk.id/7-jenis-sertifikat-tanah-yang-perlu-diketahui-ini-perbedaannya/
https://aesia.kemenkeu.go.id/berita-properti/properti/apa-saja-perbedaan-hgb-dan-shm-ketahui-hak-properti-anda-sekarang-juga-155.html
https://pashouses.id/pages/panduan/menjual-rumah/tanah-girik-menjadi-shm/
https://www.detik.com/properti/kepemilikan-rumah/d-7453005/serba-serbi-status-kepemilikan-saat-beli-rumah-susun
https://propnexplus.com/detail-artikel/apa-itu-shm-ini-penjelasannya#:~:text=Keunggulan%20SHM,agunan%20utang%20dana%20ke%20bank.
https://nimbus9.tech/blog/shm-adalah/
https://homespot.id/homespot-update/cara-buat-sertifikat-tanah-syarat-proses-dan-biaya-terbaru
https://www.medcom.id/properti/news-properti/MkM72lvN-penjelasan-shm-syarat-dan-cara-membuatnya

Understanding SHM Certificates in Detail: Benefits, How to Process, and How to Check Their Legality

Advantages of SHM Certificates Compared to Other Land Certificates

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