Bank's Responsibility for The Execution Of Auctions For Uncertified Land

Eduard Kamaleng; Emy Hajar  Abra; Alwan  Hadiyanto

doi:10.56301/awl.v8i1.1655

Eduard Kamaleng Universitas Riau Kepulauan
Emy Hajar Abra Universitas Riau Kepulauan
Alwan Hadiyanto Universitas Riau Kepulauan

DOI: https://doi.org/10.56301/awl.v8i1.1655

Keywords: Auction execution, Land, bank

Abstract

The auction method is typically used to bring together two parties in a legal transaction. In an auction, there are two parties involved: the party submitting the bid and the party that wins the auction. Auctions can be carried out on land that has been obtained and registered with a mortgage. In practice, there are also irregularities in the auction process, particularly in auctions conducted on land that has not been certified. This is the case, for example, in Court Decision Number 03/Pdt. Eks / 2020 / Pn.Tbk Jo. Number 29 / Pdt.G / 2015 / Pn.Tbk. This study will discuss the Implementation of Regulations regarding the execution of auctions for land collateral that has not been certified. How is the Bank's Accountability for the Execution of Auctions for Land That Has Not Been Certified? What is the Solution to the Execution of Auctions for Land That Has Not Been Certified? The research methodology employed in this study is a normative research approach. Regulations governing the Execution Auction include Government Regulation Number 18 of 2021 concerning Management Rights, Land Rights, Apartment Units, and Land Registration, Auction PMK, Mortgage Law, Regulation of the Minister of Agrarian Affairs Number 16 of 2021 concerning the Third Amendment to the Regulation of the Minister of Agrarian Affairs/Head of the National Land Agency Number 3 of 1997 concerning Implementing Provisions of Government Regulation Number 24 of 1997 concerning Land Registration. The role of the bank in the smooth running of the transfer of rights from the bank as the applicant for the auction of land to the auction winner is part of the bank's responsibility, as referred to in the theory of strict liability, which requires the bank to be jointly responsible for it even though the bank did not make a mistake. To address the issue of auction execution on uncertified land, several legal solutions can be employed. First, the government needs to accelerate the land certification process through the Systematic Land Registration (PTSL) program. Second, there needs to be stricter regulations related to auction execution. Third, education and socialization to the community regarding land rights and applicable legal procedures are also critical. Fourth, establishing mediation or dispute resolution institutions at the local level can be an alternative solution to resolving disputes that arise from auction execution. Fifth, the government should also consider providing incentives for landowners who are willing to undergo certification.

Downloads

Download data is not yet available.

References

Al Fikri, M. A. (2022). Implementation of strict liability by companies in cases of environmental damage in Indonesia: An overview of state administrative law in Indonesia. Indonesian State Law Review (ISLRev), 5(2), 41–52.
Alfara, M. I. (2020). Legal Protection for Winners of the Execution of Mortgage Rights Auction in the Case of the Auction Object Not in Accordance with the Auction Announcement (Case Study of Manado District Court Decision Number 123/Pdt.G/2018/Pn.Mnd.). Indonesian Notary, 2.
Algifarri, M., Abubakar, L., & Handayani, T. (2020). Legal Protection for Auction Winners of Mortgage Objects in Cases of Impeded Execution by Lawsuits Reviewed from the Law on Collateral. Galuh Justisi Scientific Journal, 8.
Anwar, Borahima, A., & Said, N. (2020). Implementation of Execution of Mortgage Rights Auction Through Auction House. Scientific Journal of World Law, 4.
Assagaf, M. A. (2023). The Legal Considerations of Judges in Declaring Bankruptcy Against a Personal Guarantor Due to Debtor Default. Universitas Islam Indonesia.
Atikah, I., & others. (2021). The Urgency Of Mortgage Agreement As An Effort To Realize The Trust By Bank As Creditor. Jurnal Hukum Dan Peradilan, 10(1), 31–63.
Budianto, A. (2020). Legal research methodology reposition in research on social science. International Journal of Criminology and Sociology, 9(1), 1339–1346.
Charron-Chénier, R., & Seamster, L. (2021). Racialized debts: Racial exclusion from credit tools and information networks. Critical Sociology, 47(6), 977–992.
Disemadi, H. S. (2022). Lenses of legal research: A descriptive essay on legal research methodologies. Journal of Judicial Review, 24(2), 289–304.
Haspada, D. (2025). Legal analysis of abuse of conditions in banking credit agreements in Indonesia: implications for international consumer protection. Cogent Social Sciences, 11(1), 2492837.
Haykal, H., Rozali, A., & Kurniawan, S. (2024). Juridical Review of the Losses of Bank with State Owned Enterprises Status for Violation of the Principles of Precaution by Bank Employees Which Caused Losses Reviewed from Positive Law in Indonesia. Contemp. Readings L. & Soc. Just., 16, 903.
Nurvadillah, N., Lutfi, M., & Haddade, A. W. (2022). Execution of Auction on Mortgage Rights For Productive Financing Due To Default Because of Pandemic Impact at Bank Sulselbar Sharia Maros Branch: Analysis of Islamic Law. International Journal of Islamic Studies, 2(2), 141–157.
Pradata, Y. I., Sarungu, J. J., & Suryantoro, A. (2020). Determinants of Savings and Community Loans in Ngawi District, 2010-2018 A Macro Economic Approach. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 3(2), 1506–1517.
Prihartanto, M. D. (2021). Settlement of Auction Disputes over Land and Building Collateral Objects. Journal of Law and Legal Reform, 2(2), 197–210.
Rasji, R. (2024). EXECUTION OF AUCTIONS FOR MORTGAGE RIGHTS BY KPKNL AFTER THE SLEMAN RELIGIOUS COURT RULING NUMBER 709/PDT. G/2022/PA. SMN. NOTARIIL Jurnal Kenotariatan, 9(1), 23–32.
Soraya, D. (2021). Legal Protection of Disadvantaged Debtor Customers in the Implementation of Object Execution Auction Procedures in Bank Credit Agreements. Indonesia Private Law Review, 2(1), 37–48.
Sriwati, S. (2021). Legal Protection for Creditor under Cross Default and Cross Collateral Clause in a Credit Agreement. Konfrontasi: Jurnal Kultural, Ekonomi Dan Perubahan Sosial, 8(1), 12–22.
Wardhana, M., Susilowati, I. F., & Perwitasari, D. (2020). Registration of Electronic Integrated Mortgage Rights of the Written Certificate of Land Rights in the Name of the Debtor. 3rd International Conference on Social Sciences (ICSS 2020), 335–341.
Yuanitasari, D., Kusmayanti, H., & Suwandono, A. (2023). A comparison study of strict liability principles implementation for the product liability within Indonesian consumer protection law between Indonesia and United States of America law. Cogent Social Sciences, 9(2), 2246748.
Yusa, I. G., Hermanto, B., & Aryani, N. M. (2020). No-spouse employment and the problem of the constitutional court of Indonesia. Journal of Advanced Research in Law and Economics, 11(1 (47)), 214–226.
Undang-Undang Nomor 5 Tahun 1960 tentang Pokok Pokok Agraria.
Undang-Undang Nomor 4 Tahun 1996 tentang Hak Tanggungan atas Tanah Beserta Benda-benda yang Berkaitan dengan Tanah.
Undang-Undang Nomor 10 Tahun 1998 tentang Perubahan Atas Undang-Undang Nomor 7 Tahun 1992 tentang Perbankan
Peraturan Pemerintah Nomor 18 Tahun 2021 tentang Hak Pengelolaan, Hak Atas Tanah, Satuan Rumah Susun, dan Pendaftaran Tanah
Peraturan Menteri Keuangan Nomor 27/PMK.06/2016 Tahun 2016 tentang Petunjuk Pelaksanaan Lelang
Peraturan Menteri Keuangan Nomor 90/PMK.06/2016 Tahun 2016 tentang Pedoman Pelaksanaan Lelang dengan Penawaran Secara Tertulis Tanpa Kehadiran Peserta Lelang Melalui Internet.