Main Article Content

Abstract

This study aims to analyse the comparison of regulations, procedures, and legal protection in the implementation of non-execution auctions in Indonesia and the Philippines through a legal-normative approach. This study uses a normative legal research method with a statute approach and a comparative approach. In Indonesia, non-execution auctions are a state administrative mechanism under the authority of the State Property and Auction Service Office (KPKNL) as regulated in Minister of Finance Regulation No. 122 of 2023, which emphasises formal legal certainty and procedural legality as a means of legal and transparent transfer of rights. Meanwhile, in the Philippines, the extrajudicial foreclosure mechanism regulated in Act No. 3135 jo. Act No. 4118 gives creditors direct authority to execute collateral without a court order, while still guaranteeing the substantive rights of debtors through the principle of equitable redemption and the redemption period. The comparison shows that the Indonesian system is oriented towards administrative efficiency and formal legal certainty, while the Philippines emphasises corrective justice and the protection of civil rights. This difference in orientation illustrates two complementary legal approaches legal certainty according to Gustav Radbruch and corrective justice according to Aristotle which, if integrated, could give rise to an ideal non-execution auction model: economically efficient, substantively fair, and legally accountable. This research is expected to provide a conceptual contribution to the development of a more adaptive and equitable non-execution auction legal system in Indonesia and the Southeast Asian region.

Keywords

Non-Execution Auction Indonesia–Philippines Legal Comparison Legal Certainty Corrective Justice

Article Details

How to Cite
Maskanah, U., Rosmiati, R., Hidayati, T. D., & Rahmawati, S. (2025). A Comparative Study of Non-Execution Auction Implementation Mechanisms in Indonesia and the Philippines. Golden Ratio of Mapping Idea and Literature Format, 5(2), 225–235. https://doi.org/10.52970/grmilf.v5i2.1845

References

  1. Act No. 3135 (An Act to Regulate the Sale of Property under Special Powers Inserted in or Annexed to Real-Estate Mortgages).
  2. Act No. 4118 (An Act to Amend Act No. 3135).
  3. Apriliyati, E. S. (30 June 2020). Auction services in the new normal era. Directorate General of State Assets, Ministry of Finance of the Republic of Indonesia. https://www.djkn.kemenkeu.go.id/artikel/baca/13293/Layanan-Lelang-di-Era-New-Normal.html
  4. Bautista, A. R. (2022). Substantive fairness in mortgage foreclosure proceedings in the Philippines. Philippine Law Journal, 95 (2), 203–227.
  5. Cruz, M. A., & Bautista, L. (2023). Due process and transparency in electronic foreclosure auctions in the Philippines. Philippine Law Review, 48 (2), 112–130. https://doi.org/10.5281/zenodo.1045123
  6. Del Rosario, E. (2020). Foreclosure reforms in Southeast Asia: Balancing creditor efficiency and debtor protection. Asian Law Journal, 15 (1), 45–66. https://doi.org/10.1080/ALJ.2020.119
  7. Fernandez, J. L., & Lontoc, M. (2021). Procedural safeguards in extrajudicial foreclosure sales: Lessons from Philippine jurisprudence. Journal of Comparative Legal Systems, 12 (3), 201–219. https://doi.org/10.1177/2393497221104421
  8. Giofanny, P. R., Hasibuhan, A. L., & Mina, R. F. P. (2024). The application of voluntary online non-execution auctions by Class II Auctioneers (Case Study of the Office of Class II Auctioneer Rosalinda, SH). JUNCTO: Scientific Journal of Law, 6 (2), 392–399. https://doi.org/10.31289/juncto.v6i2.5307
  9. Goodland Company, Inc. v. Asia United Bank, G.R. No. 227889 (Supreme Court of the Philippines, 2020).
  10. Gumilang, D., Priyanto, M., & Aditya, R. (2024). Legal implications of the digitalisation of non-execution auctions in Indonesia. *Journal of Law and Notary Science, 4 (2), 175–192. https://doi.org/10.31289/jihk.v4i2.5679
  11. Hartati, T., & Siregar, F. (2024). Digitalisation of non-execution auctions: Challenges and opportunities in the Indonesian legal system. Progressive Law Journal, 9 (1), 55–74. https://doi.org/10.5501/jhp.2024.009
  12. Ichsan Lazuardi, M. (2023). Legal certainty in the implementation of non-execution auctions in Indonesia. Indonesian Juridical Journal, 10 (3), 233–249. https://doi.org/10.31219/osf.io/xce8m
  13. Ministry of Finance of the Republic of Indonesia. (2023). Minister of Finance Regulation No. 122/PMK.06/2023 concerning Guidelines for the Implementation of Auctions. https://jdih.kemenkeu.go.id/api/download/4f42a0c7-f323-4852-aab3-cde2dd551cc5/2023pmkeuangan122.pdf
  14. Kusnadi, B., & Nur, R. (2022). The effectiveness of non-execution auctions in Indonesia from the perspective of administrative law. Lex Renaissance Journal, 7 (3), 233–250. https://doi.org/10.1234/jlr.v7i3.152
  15. Lawyer-Philippines.com. (2024). Legal remedies after notice of extrajudicial foreclosure sale in the Philippines. https://www.lawyer-philippines.com/articles/legal-remedies-after-notice-of-extrajudicial-foreclosure-sale-philippines
  16. LegisPerit. (2023, 21 August). Bar basics: Extrajudicial foreclosure of real estate mortgage. https://legisperit.com/2023/08/21/bar-basics-extrajudicial-foreclosure-of-real-estate-mortgage
  17. Lukman, R., Setyawan, I., & Pradana, N. (2025). The effectiveness of e-auctions in increasing transparency and public trust in state auctions. Journal of Public Administration, 8 (1), 88–104. https://doi.org/10.33369/jap.v8i1.11233
  18. Lutfi, H. (2022). Auction law and its role in the national economy. Yustisia Journal, 11 (2), 143–159. https://doi.org/10.25105/yustisia.v11i2.13992
  19. Marzuki, P. M. (2019). Legal research. Prenadamedia Group.
  20. Nababan, S., & Sulistyorini, T. (2024). The legal force of auction minutes in protecting auction winners. Journal of Law and Notary, 4 (1), 97–113. https://doi.org/10.31289/jihk.v4i1.5864
  21. Nurhalimah, S. (2023). Analysis of debtor rights protection in the implementation of voluntary non-execution auctions in Indonesia. Journal of Law and Social Justice, 6 (2), 213–230. https://doi.org/10.5502/jhks.v6i2.105
  22. Ministry of Finance Regulation of the Republic of Indonesia Number 122/PMK.06/2023 concerning Guidelines for the Implementation of Auctions.
  23. Pratama, Y. (2023). Legal certainty of online auctions (e-auctions) in the digital economy without the presence of Class II Auction Officials. Qodiri: Journal of Education, Social and Religious Studies, 21 (1). https://doi.org/10.53515/qodiri
  24. Public Attorney’s Office (PAO). (2024). Guidelines on extrajudicial foreclosure proceedings and protection of debtor’s rights. Government of the Philippines Publication. https://pao.gov.ph/
  25. Radbruch, G. (2020). Legal philosophy. Oxford University Press.
  26. Rahmadi, F. (2023). Legal principles and principles in the implementation of non-execution auctions in Indonesia. Mimbar Hukum, 35 (2), 245–261. https://doi.org/10.22146/jmh.v35i2.65879
  27. Respicio & Co. (24 July 2025). Additional charges in extrajudicial foreclosure in the Philippines. Respicio & Co. Law Offices. https://www.respicio.ph/commentaries/additional-charges-in-extrajudicial-foreclosure-in-philippines
  28. Rosmiati, A., & Nugroho, D. (2021). Voluntary non-execution auctions from an administrative law perspective. Journal of Law and Public Policy, 5 (1), 23–39. https://doi.org/10.31219/osf.io/z6e9x
  29. Salim, V. P., & Subagyono, B. S. A. (2022). The validity of voluntary non-execution auctions online without auction officials. Notaire, 5 (1), 155–178. https://doi.org/10.20473/ntr.v5i1.33641
  30. Siti, N. (2023). Criticism of the administrative orientation in the implementation of non-execution auctions in Indonesia. Mimbar Hukum, 35 (2), 291–308. https://doi.org/10.22146/jmh.v35i2.68455
  31. Usman, H. R. (2022). Auction law: A theoretical and practical review. Sinar Grafika.
  32. Watson, A. (2020). Legal Transplants and Comparative Law in the 21st Century. Oxford University Press.
  33. Zomer Development Co., Inc. v. Union Bank of the Philippines, G.R. No. 194461 (Supreme Court of the Philippines, 2020).