Mortgage Rights Affected by the Use of Abandoned Land as Object of Mortgage in Indonesia

Aslan Noor, Deni Nuryadi, Maharani Nurdin

Universitas Singaperbangsa, Karawang, Indonesia

Abstract:

The provision of credit is always carried out with the provision of guarantees in the form of land mortgage. There is an absence of legal provisions in the settlement of land cases when an abandoned land is used as an object of mortgage, leading to an urgency of repayment and settlement of the receivables. This study aimed to examine how the creditor, the holder of the mortgage, is affected by abandoned land provisions in the Indonesian Mortgage Law, particularly when the party providing the mortgage (debtor) fails to fulfill his promise. The focus in this study is on Law Number 4 of 1996 which regulates the Mortgage Rights promulgated in the Law of the Republic of Indonesia. The data was collected through library research and field research methods which gave the access to primary legal materials, laws and regulations. A descriptive analytical research method was used to analyze the data with the type of normative legal research and a normative juridical approach. The study found that often the debtors intentionally mortgaged a land as object of mortgage that was destined to be abandoned by the government. The study recommends the law to include the provision of a second collateral and allow the mortgage holder to suggest some other land as a mortgage if the original object of mortgage is declared as an abandoned land by the government.

Keyword:

mortgage rights, abandoned land, mortgage law, land as object of mortgage,