Characteristics of Power of Attorney for Mortgage Rights on Collateral Law System in Indonesia

Abstract

There are two ways in executing mortgage rights, i.e., first, transferring the mortgage right by issuing mortgage deed (APHT) by the Land Deed Official (the PPAT) by making guaranteed debt agreement initially. Second, registration at the Land Office as the issuance of mortgage rights. Provision of the General Explanation of paragraph 7 (seven) of the Act Number 4 of 1996 on Mortgage rights on Land and Land-Related Objects, referred to UUHT, stated that "in transferring the mortgage, the lender should attend before the PPAT, or appointing other party to present on his behalf with the Power of Attorney to charge for Mortgage Rights (SKMHT) in form of an authentic deed." By this provision, the SKMHT is made based on a certain circumstance (optional). Inversely, the Article 15 Paragraph (2), Paragraph (3), Paragraph (4) of the UUHT regulates the period of SKMHT, and Article 15 Paragraph (5) of the UUHT states that SKMHT is used to guarantee a certain type of loan. It is supported by the ratification of PMA No. 4 of 1996 concerning Determination of the Deadline for the Use of Power of Attorney to charge for Mortgage rights to Guarantee Certain Credit Settlement, which are then replaced with PMA No. 22 of 2017 concerning Determination of the Deadline for the Use of Power of Attorney to charge for Mortgage rights to Guarantee Certain Credit Settlement. Under the provision, the SKMHT is used as a quasi-collateral. Thus, a legal reform of the SKMHT is important to realize the legal objectives, namely, legal justice, certainty and expediency, both for the community and stakeholders.