Updates on Seller’s Responsibility on Auction Procedures

Minister of Finance of The Republic of Indonesia Regulation Number 27/PML.06/2016 of 2016

concerning Guidelines on Auction Implementation (“PMK 27/2016”) and Minister of Finance of
The Republic of Indonesia Regulation Number 90/PMK.06/2016 concerning Guidelines on the
Implementation of Auction Through the Internet (“PMK 90/2016”) (PMK 27/2016 and PMK
90/2016 hereinafter jointly referred to as “Old Regulations”) has been revoked by the issuance
Minister of Finance of The Republic of Indonesia Regulation Number 213/PMK.06/2020
concerning Guidelines on Auction Implementation (“PMK 213/2020”).
Unlike the Old Regulations, which distinct implementation of auctions arrangement that
attended physically and through the Internet, PMK 213/2020 unifies the former and latter
mechanisms into one regulation. It makes PMK 213/2020 easier and practical to be understood
by the stakeholders.
In the Indonesian banking practice, If the debtor cannot fulfill its obligation under the loan
agreement, the bank (as a creditor) may sell the collateral (jaminan) through a public auction as
a seller (“Seller”). Therefore, understanding new responsibilities under PMK 213/2020 is
necessary for the bank to avoid any auction dispute.
Seller`s responsibility under PMK 213/2020 turns into more detail and well-structured than the
Old Regulations. The following is the comparison of Seller`s responsibility amongst PMK
213/2020 and PMK 27/2020:

Comparison Table of Seller`s Responsibility in Sales by Auction

Under PMK 213/2020 (New Under PMK 27/2016 (Old

Regulation), the Seller is Regulations), the Seller is
responsible for: responsible for:

Article 13 (1) (a) PMK The validity of ownership and/or Previously regulated under
123/2020 authority to sell Article 17 (1) (a) PMK 27/2016,
which stated the Seller
responsible for “the validity of
ownership”

Article 13 (1) (b) PMK The validity of auction Previously regulated under
123/2020 requirements documents Article 17 (1) (a) PMK 27/2016
(identical arrangement)

Article 13 (1) (c) PMK The validity of additional auction N/A

213/2020 requirements

Article 13 (1) (d) PMK The validity of auction N/A

213/2020 notification

Article 13 (1) (e) PMK Formal and material correctness Previously regulated under
213/2020 of limit value (nilai limit) Article 17 (1) (e) PMK 27/2016,
which stated that “Seller
responsible to limit value
determination”
Article 13 (1) (f) PMK Formally and materially N/A
213/2020 responsible for the validation of
no alteration statement, which
declares no physical and legal
data alteration over the land or
strata title or any other auction
objects.

Article 13 (1) (g) PMK The validity of information under N/A

213/2020 the letter and its delivery which
performed by Seller to related
party

Article 13 (1) (h) PMK Goods conformity to auction N/A

213/2020 documents

Article 13 (1) (i) PMK The handover of movable and Previously regulated under
213/2020 immovable goods. Article 17 (1) (c) PMK 27/2016
(identical arrangement)

Article 13 (1) (j) PMK The handover of original Previously regulated under
213/2020 ownership documents to the Article 17 (1) (d) PMK 27/2016
buyer which stated the Seller
responsible for “the handover of
ownership documents to buyer”
Article 13 (1) (k) PMK Civil claim and/or criminal Previously regulated under
213/2020 charge, including its execution Article 17 (2) PMK 27/2016,
resulting from the non- which stated the Seller
compliance towards prevailing responsible to “claim and/or
auction procedure by the Seller. charge as a result of the
infringement on auction
regulation”

Article 13 (1) (l) PMK Claim for compensation towards Previously regulated under
213/2020 damages including dwangsom Article 17 (3) PMK 27/2016,
resulted from Seller`s which stated that Seller
negligence to fulfill its responsible to:
responsibility from letter (a) to
(h) Article 13 PMK 213/2020 “claim for compensation upon
loss that emerges due to
infringing responsibility as
stated under paragraph (1)”

Article 32 (1) PMK 213 The implementation and cost on Previously regulated under
 the letter of land information Article 25 (5) PMK 27/2016
(SKT)/ letter of land registration which stated “the cost of
information (SKPT)/letter of SKT/SKPT or Letter from the
apartment registration Headman are the responsibility
information/ letter of auction of Seller”
object information or letter from
the head of the village/
apartment manager/ apartment
owner’s association.

In general, after the Ministry of Finance enacted the regulation regarding the auction, the
directorate general of state wealth (“DJKN”) also enacting DJKN`s regulation concerning
technical guidelines on the auction implementation. However, until the issuance date of this
article, DJKN has not issued new regulation yet. Based on that, the Regulation of DJKN No.
6/KN/2013 of 2013 jo. Regulation of DJKN No. 2/KN/2017 of 2017 concerning Technical
Guidelines on the Auction Implementation is still in force.
PMK 213/2020 is in force after 3 (three) months since 12 December 2020.