Bridging the Gap Between Legal Certainty and Practice: An Empirical Study of Mortgage Enforcement for Non-Performing Loans in Indonesia
DOI:
https://doi.org/10.53905/Veritas.v1i04.12Keywords:
mortgage right, Hak Tanggungan, execution, auction, non-performing loan, banking lawAbstract
Purpose of the study: This study aims to analyze the legal implementation of the execution of mortgage right (Hak Tanggungan) collateral objects by PT. Bank Rakyat Indonesia (Persero) Tbk, Tanjung Sub-Branch Unit, Makassar, and to identify the juridical and non-juridical obstacles encountered by the bank in executing such collateral for the settlement of non-performing loans.
Methodology: The research employed an empirical-juridical approach, examining how positive law—principally Law Number 4 of 1996 concerning Mortgage Rights over Land and Objects Related to Land (UUHT)—is applied in factual banking practice. Primary data were obtained through structured interviews with the Account Officer and Mantri (credit supervisor) of PT. BRI (Persero) Tbk Tanjung Sub-Branch Unit, Makassar, as well as with a debtor whose collateral had been subject to execution. Secondary data were derived from statutory regulations, legal doctrine, prior scholarly studies, and internal bank documentation on non-performing loans for the period 2013–2016. Data were analyzed qualitatively and presented descriptively-analytically.
Results: The execution of mortgage objects at PT. BRI (Persero) Tbk Tanjung Sub-Branch Unit, Makassar, was conducted in accordance with Article 20 of the UUHT through three mechanisms: public auction (parate executie), private sale (penjualan di bawah tangan), and execution based on a District Court decision. Between 2013 and June 2016, the bank recorded 21 non-performing loan accounts, of which 8 required collateral execution; six were resolved through auction, one through private sale, and one remained in the seizure (sita eksekusi) stage. Non-juridical obstacles identified include protracted debtor negotiation behavior, disagreement over auction limit prices, legal resistance through District Court lawsuits, post-auction vacant-possession (pengosongan) disputes, buyers' inability to gain possession of the auctioned object, and third-party claims over the collateral.
Conclusions: Although the UUHT normatively guarantees an easy and certain execution mechanism for mortgage holders, its practical implementation at the bank-unit level remains hampered by debtor non-cooperation, valuation disputes, and litigation strategies used to delay execution. Strengthening pre-execution mediation, transparent valuation procedures, and expedited court handling of debtor resistance suits are recommended to restore the intended efficiency of mortgage execution under Indonesian secured-transactions law.
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