This study aims to analyze the implementation of Article 1 Number 11 of Minister of Finance Regulation Number 122 of 2023 concerning Auction Implementation Guidelines in fulfilling the formal legality requirements of auction objects, as reflected in Decision Number 244/Pdt.G/2022/PN Byw, and to identify legal gaps that may contribute to violations in the auction process. This study employs a normative legal research method using a statutory approach and a case approach, with secondary legal data consisting of primary, secondary, and tertiary legal materials. The results indicate that the fulfillment of the formal legality requirements of the auction object in the case under review was not optimally implemented. This condition demonstrates the existence of gaps in the document examination and verification mechanisms, which may allow auction applications to be processed without adequate verification of the formal legality of the subjects and objects of the auction. Such circumstances may give rise to legal disputes and cause losses to parties having legal interests in the auction object. Therefore, preventive measures are necessary through the review and improvement of standard operating procedures (SOPs) for document examination and verification, both digitally and non-digitally. In addition, a more comprehensive verification mechanism is required for relevant parties, including debtors or third parties, where an auction application concerns an object encumbered with a Mortgage Right. Strengthening these mechanisms is necessary to ensure that formal legality requirements are fulfilled prior to the implementation of an auction and to minimize the potential for errors and subsequent legal disputes.
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