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Ismed Ismed
Universitas Andalas
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Journal : International Journal Of Synergi In Law, Criminal And Justice

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Analysis of the Effectiveness of the Execution of Mortgage Rights from the Perspective of the Principle of Good Faith and Balance of Interests Ismed, Ismed; Fitri Rafianti; Henry Aspan
International Journal of Synergy in Law, Criminal, and Justice Vol. 2 No. 3 (2025): SLP-IJSLCJ
Publisher : PT. Sinergi Legal Publisher

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Abstract

Parate execution of mortgage rights is a legal instrument that grants extraordinary authority to creditors to auction collateral objects without going through the courts, as stipulated in Article 6 and Article 14 paragraph (2) of Law Number 4 of 1996 concerning Mortgage Rights. This mechanism is normatively claimed as a form of efficiency and legal certainty in resolving problem loans. However, in practice, the implementation of parate execution is fraught with inequality and potential violations of the principle of justice, especially for debtors. Many debtors are forced to lose assets through public auctions conducted unilaterally, without room for negotiation, without adequate supervision, even at auction prices that do not reflect fair market value. As a result, instead of settling their debts, debtors are trapped in the trap of remaining debt after execution. This proves that the law has been used to perpetuate the economic domination of creditors and ignore the basic rights of debtors. This research shows that the concept of parate execution in the UUHT does not fully reflect the principles of good faith and balance of interests as mandated in Article 1338 paragraph (3) of the Civil Code and the decisions of the Constitutional Court. The imbalance in bargaining position between creditors and debtors is not compensated by adequate legal protection. Therefore, it is necessary to reformulate the norms, including limiting the right of unilateral execution, strengthening the space for negotiation, and developing alternative auction mechanisms that are fairer and more transparent. Without fundamental corrections, parate execution will continue to be a tool for legalizing structural inequalities that harm social justice and negate the spirit of the law as a guardian of the human rights of every citizen.
Co-Authors Aisman Aisman Andarmoyo, Sulistyo Bastian Nova Cesar Wellya Refdi Cesar Welya Refdi Daimon Syukri Diana Sylvi Diana Sylvi Diana Sylvi Diana, Silvy Efrina, Efrina Emdat Suprayitno Erawan, Tiar Fadhillawati Fri Asma Fauzan Azima Fauzi, Yusma Resti Feby Andini Felga Zulfia Rasdiana Felga Zulfia Rasiana Hardini Putri Hasbullah Hasbullah Hasbullah Hasbullah Heni Pujiastuti Henry Aspan Hildayani, Wina Huswatun Hasanah Indrayani, Siska Lidiyawati, Herlina Linda Wati Maidelwita, Yani Maya, Sofya Mentari Cyntia Rifni Miksusanti Miksusanti Muntasir, Muntasir Nasri, Farida Netty Herawati Nika Rahma Yanti Novelina Novizar Nazir Purnama Dini Hari Rafianti, Fitri Rahma, Jihan Rahmadoni, Jefril Reni Koja Rina Yenrina Rina, Yenrina Rini B Rini Rini RINI RINI Risti Kurnia Dewi Salim, Emil Salsabila, Unik Hanifah Sayuti, Kesuma Sembiring*, Nur Pelita Siska Desri Wirahmi, Busman, Edrizal, Sonia Merlin Suryani, Indah Permata Syarifatun Nisa Sylvi, Diana Syuryadi, Novfitri Tahrir Aulawi Tuty Anggraini Tuty, Anggraini Ufa Aurora Guciano Ulfatmi Hanifa Wellyalina, Wellyalina Welya Refdi, Cesar Xu, Shanshan Yusma Resti Fauzi Yusniwati Yusniwati