Legal Certainty of the Legal Status of Unregistered Land in Auction Implementation

Abstract

This study examines the normative inconsistency between Minister of Finance Regulation (PMK) Number 122 of 2023, which requires a certificate stating that land has not been registered issued by the National Land Agency (BPN) in the implementation of voluntary auctions, and the provisions of the Basic Agrarian Law (UUPA) and Government Regulation Number 24 of 1997, which do not grant BPN the authority to issue such certificate. This regulatory disharmony creates legal uncertainty and has the potential to cause losses to auction winners. The issues examined include the juridical meaning of registered and unregistered land, the legal implications of auctions involving unregistered land from the perspective of legal certainty, and the formulation of an ideal legal framework. This research employs a normative juridical method using statutory, conceptual, and historical approaches through the examination of primary and secondary legal materials. The findings indicate that registered land is land that has been certified and therefore provides stronger legal certainty and protection, whereas unregistered land is still based on traditional evidence of possession and consequently has a greater potential for disputes. Nevertheless, unregistered land may still become the object of an auction through certain legal mechanisms, with the Auction Minutes (Risalah Lelang) serving as an authentic deed. The implementation of auctions without a certificate from BPN weakens legal protection for auction winners, although their legal position remains protected under the doctrine of good-faith purchasers. Based on these findings, regulatory harmonization is necessary through the establishment of joint regulations between the Ministry of Finance and BPN, the development of an integrated digital service (one-stop service), and revisions to Government Regulation Number 24 of 1997 and PMK Number 122 of 2023 by replacing physical certificate requirements with an integrated electronic verification system to strengthen legal certainty and protection for all parties involved.