FULFILLING THE RIGHTS OF THE PARTIES IN THE AUCTION EXECUTION IN INDONESIA: A REVIEW
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Abstract
Since legal protection is not yet applied,the Office of State Assets and Auction Services as well as the Chairman of District Courts exist.The collateral object of the auction does not meet the requirements for the Mortgage Right auction due to a demand for resistance (verzet) from the debtor or from a third party which of course will hinder legal protection and certainty.In addition, lengthy and protractedly auction process might exist so that it takes a relatively long time to arrive at the auction for the implementation of the Mortgage Right, which of course affects the results of the sale of the auction to pay off all debt obligations of the debtor.Auction execution of Mortgage Right to repay debtor’s debt can also be carried out under the agreement with the creditors’and debtors’ approval and covenantwithoutthe existence of the third party.What often happens is that the selling price of the object underwriting guarantee is recorded higher than the one through a public auction is.
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