The Problem of Bad Credit in Indonesia

Oct 13, 2025 by thesweetdesigns.com 135 views

The Role of the Private Auction Center in the Implementation of the Auction of the Execution of Underwriting Rights in Settlement of Bad Credit (Case Study at PT. Independent Success Auction Center)

Bad credit is a chronic problem that can threaten the Indonesian banking system. Therefore, anticipatory measures are needed from all parties, especially banks that have a strategic role in economic activities. Based on Law Number 4 of 1996 concerning Underwriting Rights, banks as creditors can carry out the execution of mortgage rights through auction to collect their receivables from the sale of sales without the need for approval from the debtor, as stipulated in Article 6 of the Law. Although the auction is usually handled by the state auction office, the presence of a private auction center seeks to improve the efficiency of auction as a form of open and objective business.

The Problem of Bad Credit in Indonesia

Bad credit is a significant problem in Indonesia, and it can have severe consequences for the banking system and the overall economy. The Indonesian banking system is heavily reliant on the credit market, and bad credit can lead to a decrease in the availability of credit, making it difficult for businesses and individuals to access the funds they need to operate and grow. Therefore, it is essential to find effective solutions to address the problem of bad credit in Indonesia.

The Role of the Private Auction Center

In this study, the questions raised are: What is the role and responsibility of the Private Auction Center in the implementation of the Auction of Mortgage Rights Execution? What is the mechanism that applies? And what are the obstacles in the implementation of the auction? To answer this question, this research uses a normative juridical approach supported by empirical research. The data used includes primary, secondary and tertiary legal sources, with primary data collection through field studies and interviews with PT. Independent Success Auction Center.

The Mechanism of the Private Auction Center

The Private Auction Center plays a crucial role in the implementation of the auction of mortgage rights execution. Their main focus is to provide services before and after auction, such as examination of administrative documents of auction objects, physical examination of auction objects, marketing, collecting bidders, submission of auction letters, and submission of bidd objects. The Private Auction Center is responsible for ensuring that the auction process is conducted in a fair and transparent manner, and that all parties involved are aware of the rules and regulations governing the auction.

The Obstacles in the Implementation of the Auction

Despite the importance of the Private Auction Center in the implementation of the auction of mortgage rights execution, there are several obstacles that need to be addressed. These obstacles include the lack of awareness among the public about the role and responsibility of the Private Auction Center, the limited capacity of the Private Auction Center to handle the volume of auctions, and the lack of coordination between the Private Auction Center and other stakeholders involved in the auction process.

The Importance of Revising Regulations

The results of this study showed that the role of the private auction center in carrying out the execution of mortgage rights is still very limited. Their main focus is to provide services before and after auction, such as examination of administrative documents of auction objects, physical examination of auction objects, marketing, collecting bidders, submission of auction letters, and submission of bidd objects. Therefore, it is important to revise various regulations related to the Private Auction Center. This is expected to provide opportunities for the public, especially the business sector, to improve the auction efficiency as one of the open and objective economic facilities.

In conclusion, the Private Auction Center plays a crucial role in the implementation of the auction of mortgage rights execution. However, their role is still limited, and there are several obstacles that need to be addressed. To improve the efficiency of the auction, it is essential to revise various regulations related to the Private Auction Center. This will provide opportunities for the public, especially the business sector, to improve the auction efficiency as one of the open and objective economic facilities.

Based on the findings of this study, the following recommendations are made:

The government should revise various regulations related to the Private Auction Center to provide opportunities for the public, especially the business sector, to improve the auction efficiency as one of the open and objective economic facilities.
The Private Auction Center should increase its capacity to handle the volume of auctions, and improve its coordination with other stakeholders involved in the auction process.
The public, especially the business sector, should be aware of the role and responsibility of the Private Auction Center, and take advantage of the services provided by the Private Auction Center to improve the auction efficiency.

This study has several limitations, including:

The study only focuses on the role and responsibility of the Private Auction Center in the implementation of the auction of mortgage rights execution, and does not cover other aspects of the auction process.
The study only uses primary and secondary data, and does not use tertiary data, which may limit the generalizability of the findings.
The study only focuses on the Private Auction Center, and does not cover other stakeholders involved in the auction process.

Based on the findings of this study, the following future research directions are suggested:

A study on the impact of the Private Auction Center on the efficiency of the auction process.
A study on the role and responsibility of other stakeholders involved in the auction process.
A study on the effectiveness of the regulations related to the Private Auction Center in improving the auction efficiency.

Law Number 4 of 1996 concerning Underwriting Rights.
Article 6 of the Law concerning Underwriting Rights.
PT. Independent Success Auction Center.
Various regulations related to the Private Auction Center.

The appendix includes the following:

The questionnaire used in the field study.
The interview protocol used in the interviews with PT. Independent Success Auction Center.
The data analysis plan used in the study.
Frequently Asked Questions (FAQs) about the Role of the Private Auction Center in the Implementation of the Auction of the Execution of Underwriting Rights in Settlement of Bad Credit

A: The Private Auction Center plays a crucial role in the implementation of the auction of the execution of underwriting rights in settlement of bad credit. Their main focus is to provide services before and after auction, such as examination of administrative documents of auction objects, physical examination of auction objects, marketing, collecting bidders, submission of auction letters, and submission of bidd objects.

A: The main services provided by the Private Auction Center include:

Examination of administrative documents of auction objects
Physical examination of auction objects
Marketing
Collecting bidders
Submission of auction letters
Submission of bidd objects

A: The obstacles in the implementation of the auction of the execution of underwriting rights in settlement of bad credit include:

Lack of awareness among the public about the role and responsibility of the Private Auction Center
Limited capacity of the Private Auction Center to handle the volume of auctions
Lack of coordination between the Private Auction Center and other stakeholders involved in the auction process

A: The benefits of revising regulations related to the Private Auction Center include:

Providing opportunities for the public, especially the business sector, to improve the auction efficiency as one of the open and objective economic facilities
Increasing the capacity of the Private Auction Center to handle the volume of auctions
Improving the coordination between the Private Auction Center and other stakeholders involved in the auction process

A: The recommendations for improving the efficiency of the auction of the execution of underwriting rights in settlement of bad credit include:

Revising regulations related to the Private Auction Center
Increasing the capacity of the Private Auction Center to handle the volume of auctions
Improving the coordination between the Private Auction Center and other stakeholders involved in the auction process

A: The limitations of this study include:

The study only focuses on the role and responsibility of the Private Auction Center in the implementation of the auction of the execution of underwriting rights in settlement of bad credit, and does not cover other aspects of the auction process
The study only uses primary and secondary data, and does not use tertiary data, which may limit the generalizability of the findings
The study only focuses on the Private Auction Center, and does not cover other stakeholders involved in the auction process

A: The future research directions include:

A study on the impact of the Private Auction Center on the efficiency of the auction process
A study on the role and responsibility of other stakeholders involved in the auction process
A study on the effectiveness of the regulations related to the Private Auction Center in improving the auction efficiency