Legality of Execution of Collateral Based on Electronic Mortgage Certificate in Bank Credit Agreement

Legality in an act of law is the most important because if there is no legality then the act committed is an illegal act. Based on this, of course the registration of mortgage rights carried out required the existence of legality. Legality must be in the form of laws and regulations issued by authorized institutions (Chen, 2015). With the existence of legality, it will provide legal certainty and protection for the consequences of acts committed in registering mortgage rights. Legality in the case of mortgage rights is regulated by Law Number 4 of 1996 concerning Mortgage Rights and Land Related Items. Mortgage is a guarantee provided by a debtor to a creditor in a debt agreement made by the Bank. In providing credit, banks provide an assessment that can be in the form of analysis. A good analysis will produce the right decision (Purba & Sipahutar, 2020). Debts due between creditors and debtors are accompanied by collateral in the form of objects or assets from the debtor such as a house (Abduh & Razak, 2011). The guarantee given by the debtor to the creditor in the form of immovable property in this case Land or Building is a gift from the debtor / consumer (Amen, 2019). Land or building according to the Law of the Republic of Indonesia Number 4 of 1996 concerning Mortgage Rights states that land and buildings are included in the object of Underwriting Guarantee. Mortgage is an interaction between a financier (creditor) and a borrower (debitor) with an agreement between them, between the framework of the agreement determined by the laws and Abstract

regulations relating to debt and receivables. The debt receivable agreement is the principal agreement that will be followed by a follow-up agreement in this case the agreement to charge mortgages (Scanlon et al., 2012). The follow-up agreement if agreed by both parties with the surrender of the surrender of collateral as a form of debt repayment guarantee from the debtor (M. Bahsan, 2017).
In practice, objects that can be used as collateral for credit agreements are objects in the form of land. Land has a very high economic value, making it very easy to sell, has legal and legal ownership rights, and cannot be misused against non-owners. So that land is an object that is used as mortgage rights will give a very special position to creditors (Perangin, 1991). Mortgage is a collateral right for objects in the form of land to be able to pay off debts that give a priority position. The position takes precedence, that is, especially with respect to certain creditors who first bind their dependents to other creditors (Sjahdeni, 1999).
Law Number 4 of 1996 concerning Mortgage Rights and Land Related Items (UUHT) promulgated on April 9, 1996 of 1996, With the enactment of these laws, since then all matters relating to mortgage rights over land is carried out according to UUHT provisions. Registration of mortgage is done through the land office or BPN.
Good land data and information management has an important role in realizing the goal of sustainable national development. This activity is an important part of realizing good governance (good governance). Good governance is one of the pillars supporting sustainable development, in addition to economic, environmental and social (Williamson, I., Enemark, S., Wallace, J. & A., 2010), so that in the management of data and information in the good land sector will support the realization of the goal of sustainable national development. The Government in carrying out its duties in the field of land, which includes the formulation and implementation of policies in the field of land registration, surveying, measurement and mapping as described in Presidential Regulation No. 20/2015, is the responsibility of the Ministry of Agrarian Affairs and Spatial Planning / National Land Agency (Ministry of ATR / BPN).
With current technological developments and simplifying the process and guaranteeing transparency in administrative activities, changes are needed. Changes in the process of registration of mortgage rights with the issuance of Regulation of the Minister of Agrarian Affairs and Spatial Planning / Head of the National Land Agency Number 3 of 2019 concerning Electronic Integrated Mortgage Rights Services. Changes in the registration process of mortgage rights is that the registration of mortgage rights can be done through an electronic system.
The policy on the registration system for mortgage rights based on the Minister of Agrarian and Spatial Planning / Head of the National Land Agency Number 3 of 2019 concerning Electronic Integrated Mortgage Services states that electronic registration is a series of mortgage service service processes in the context of maintaining registration data held through an electronic system integrated. The effective electronic registration of mortgage rights system starts in 2020.
According to Article 14 paragraph (1) the Underwriting Rights Law states that as proof of the existence of mortgage of rights the land office issues a mortgage right certificate. The mortgage rights registration system prior to the Regulation of the Minister of Agrarian and Spatial Planning / Head of the National Land Agency Number 3 of 2019 is done manually whereas after the issuance of the regulation of the Minister of Agrarian Affairs and Spatial Planning / Heads of the National Land Agency in 2019 the registration system of mortgage rights is carried out electronically. With the change in the registration system will certainly affect the legality of certificates issued by the Land Office because the data about the state of the object is considered to be true as long as there is no request for improvement from the registrant so that the land office in this case is passive.
Certificate of mortgage rights as regulated in Article 14 paragraph (3) of the Mortgage Law, that the certificate of mortgage rights has the same executorial power as a court decision which has obtained permanent legal force and acts as a substitute for the grosse acte Hypotheek insofar as it is related to land rights. Mortgage certificate functions as a tool to execute if the debtor defaults or fails to pay, default is a risk that must be faced by banks as creditors (Rachman et al., 2019). This is as regulated in Article 1 number (1) of the Mortgage Law that the security rights are collateral rights which are charged to the following land rights or not together with other objects that form an integral part of the land, to pay off certain debts, which give preferential position to certain creditors to other creditors.
Execution of Mortgage Rights on land and objects related to land is one way for creditors to obtain legal protection. Execution of Mortgage Rights on land and objects related to the land can really provide a guarantee to the creditor to recover his receivables if the Debtor fails to promise / default (Ngadenan, 2010). Based on this it is certainly interesting to do in-depth research related to mortgage rights certificates that are registered electronically. The legality of the mortgage certificate to execute the guarantee is very important if there is a data error and does not make changes. This will result in legal consequences for both creditors and debtors.

II. Research Methods
This research is in the form of library research, namely research conducted using library materials to be studied and interpreted which are theoretical concerning principles, conceptions, doctrines and norms that live in society. The data used in this study are secondary data. Secondary data isresearch with the study of literature through a review of the legislation, literature, writings of legal experts, lecture material related to this research (Ridwan, 2004).
The secondary data used in this study are as follows: Processing and analysis of data in this study was carried out with qualitative analysis methods, namely the process of analyzing data consisting of words that can be interpreted, namely data from research results in literature in written form and as soon as possible an analysis of research results (Nasution, 2013).

Land Information System in the context of registration of mortgage rights electronically
The development of information technology and its supporting infrastructure creates opportunities for the development of a more reliable, efficient and timely Land Information System (SIP) within the National Land Agency (BPN). The growth of information needs on land that is more accessible that is demanded by the public (policy recipients) and the government (policy makers) is increasing higher than before (Mustofa et al., 2018).
Based on the readiness of

Basic Mortgage and Its Legality
In the case of a debt-receivable relationship arising from a debt-credit agreement or credit agreement, the agreement can be made domestically or internationally and the parties concerned may be individuals or foreign legal entities as long as the credit concerned is used for development purposes in the territory of the country Republic of Indonesia (Elucidation of Article 10 paragraph (1) of the LoGA). Credit agreements made involve many other elements such as Notaries / Land Deed Making Officials, assessment teams, insurance companies, as well as those who have the authority to record collateral as collateral in a credit agreement (Hartono, 2019).
Credit agreement in the form of credit will be followed by an agreement to hand over collateral. Collateral objects submitted in credit agreements with banks are generally in the form of fixed objects or land and buildings. Land / building based on the Basic Agrarian Law is charged with Mortgage Rights. Mortgage rights to reach the stage of fulfillment of the principle of publicity as mentioned above as one of the absolute elements of land rights that can be used as objects of Mortgage Rights, the first stage is the stage of granting mortgage (Rohendi, 2015). Mortgage rights granted are usually in the form of houses and land, exceptions to flats cannot be used as collateral for mortgage. So that an understanding of the security guarantee system to the community is needed (Joseph Andy Hartanto, 2019).
Regulations regarding mortgage rights in Indonesia as a basis for the enforcement and legality of a mortgage security guarantee institution are Law of the Republic of Indonesia Number 4 of 1996 concerning Mortgage Rights and Land Related Objects. In Article 1 number (1), Underwriting Right, is a guarantee right which is imposed on the right to the following land or not other objects that are one unity with the land, to pay off certain debts, which gives a position preferably certain creditors over other creditors. Based on the contents of the Article it shows that the Underwriting Right is a special type of guarantee. The object of land rights that can be charged to the mortgage right are 1) Ownership Rights; 2) Cultivation Rights; and 3) Building Use Rights.
The purpose of granting or encumbering mortgage rights is in order to provide protection and legal certainty to all parties (especially creditors), and to fulfill the principle of publicity (Habib Adjie, 2018). Registration of mortgage rights is regulated in Article 13 to Article 14 of the Mortgage Law which reads the granting of mortgage rights must be registered at the land office. Registration of mortgage rights as regulated in Article 13 is based on Regulation of the Minister of Agrarian Affairs and Spatial Planning / Head of National Land Agency Number 3 of 2019 concerning Electronic Integrated Mortgage Rights Services. So at this time registration of mortgage is carried out electronically. In electronic registration, of course, it must fulfill its legality. The legality is needed in order to provide legal protection and certainty. Regarding electronic registration, there are certainly a number of things that need to be considered such as the data entered by the proposer / applicant. Such data will certainly affect the legality of the products issued by the land office on registration of mortgage rights.
In order to maintain the legality of certificates issued by BPN, the applicant is required to make a statement of the validity of the proposed data.
In the statement letter made by the applicant, it must be signed and stamped. As well as the validity and correctness of the documents submitted are in the applicant, and if there are document errors, based on Article 19 of the Regulation of the Minister of Agrarian Affairs and Spatial Planning / Head of the National Land Agency Number 3 of 2019, that for errors in filling data, it is permissible to make corrections to mortgage certificate. And certificate of mortgage rights repair issued then the mortgage certificate that has been previously issued is no longer valid. The mortgage certificate issued is signed electronically by the authorized official and provides a Qrcode. Regulation or legality of electronic signatures is regulated in Regulation of the Minister of Agrarian Affairs and Spatial Planning / Head of National Land Agency Number 3 of 2019 concerning the application of Electronic Signatures. Electronic Signature is a signature consisting of Electronic Information that is attached, associated or related to other Electronic Information that is used as a verification and authentication tool (Article 1 number (1)). The form of electronic mortgage rights certificates can be seen in Figure 1.

Figure 1. Example of mortgage
In addition to the mortgage right certificate issued by the National Land Agency of the Republic of Indonesia, records are also taken for the encumbrance of the mortgage. Record of loading of mortgage is attached to the mortgage certificate. The form of recording of mortgage can be seen in Figure 2.

Execution of Mortgage Guarantee Objects
Debt receivables in a credit agreement requires an understanding of the prospective debtor about the provisions in the guarantee system. Understanding of the guarantee system of the public or prospective debtor must be good (Lee et al., 2019;Atkinson, Anthony B., 2011;Cardaci, 2018). This will affect the payment system for the credit they have. Failure to pay or default from the debtor will result in the auction of collateral (Nugroho, 2018;Jayanti et al., 2018). Because credit defaults can originate from within the bank or outside parties. According to Article 6 of the Mortgage Rights Act, if the debtor fails to promise, the first mortgage right holder has the right to sell the object of the mortgage right on his own authority through a public auction and to repay his debt from the proceeds of the sale (Suharno, 2003). Default is a risk of the Bank in providing credit, it can affect the performance of banks in Indonesia (Nur M Ridha Tarigan, 2020). To avoid default, it is necessary to have a strong organizational culture management system from the Bank as the goal of the company (Nur M Ridha Tarigan, 2020).
Pursuant to Article 13 of the Underwriting Right Act, the granting of the mortgage right must be registered at the land office. registration of mortgage rights at the land office so far is still a manual that is coming directly to the land office. The purpose of registering mortgage rights on land certificates is to make it easier for creditors to execute mortgage rights if the debtor defaults. This is because in the mortgage right certificate contains the command "FOR JUSTICE BASED ON ALMIGHTY GOD" that makes the mortgage right certificate has the same executorial power as a court decision that has obtained permanent legal force (Article 14 paragraph 2 of Law Number 4 Year 1996 concerning Mortgage Rights and Objects Related to Land) (Dianawati, Catur Budi, 2017).
With reference to Article 20 of the Mortgage Law, there are two possibilities that can be done by creditors if the debtor fails to promise, namely: 1) carrying out a parate of execution and 2) based on the executorial title contained in the mortgage certificate sold at a public auction. Auction of execution of mortgage rights can be done through an auction institution, namely the Office of State Assets and Auction Services (KPKNL) which is requested by the Mortgage Holder (Kelvin, 2018). The execution of the object of mortgage rights through the auction for reasons of breach of contract is not dependent on the maturity of the credit agreement. Article 6 of Law Number 4 of 1996 does not explain the factor of breach of contract, it only confirms that the breach of contract is the basis for holders of mortgage rights to carry out their rights to sell objects of mortgage rights. This was repeated again in the explanation of the article which said that if the debtor fails to promise, the mortgage right holder has the right to sell the object of the mortgage right on his own authority, if in the Deed of Granting Mortgage Rights, such a clause is stated (Zaki, 2017). Debtors are said to do and do default or there is a bad credit if the credit is due. Against the debtor's debt has not been paid to the bank / creditor resulting in installment arrears. Installment arrears have exceeded 270 days or 9 months can be regarded as a bad credit. Debtors who carry out these acts are no longer able to pay off or repay their debts, both the principal debt and the interest debt, which is found from the results of operations that are capitalized by a credit facility, one of which is taken in a bank institution (S. Mantayborbir, 2002).
Execution of mortgage rights as collateral for a credit carried out with parate executions, executions with executorial titles, and sales below hand (Widjaja et al., 2018). Execution of the mortgage guarantee is the last step taken by the creditor as the recipient of the mortgage rights to the giver of the Mortgage / debtor if the breach of promise or default (Marnita, 2017). In connection with the mortgage right execution system can be seen in the following chart picture:

The Legality of the Mortgage Certificate Electronically as an Execution Tool
Legality in the form of principles formulated in every statutory regulation or constitution of a country, is fundamental and must be maintained for legal certainty. The meaning of negligence must be well understood in terms of law enforcement and justice (Sri Rahayu, 2014). Legality in a letter is very important. This will affect the actions that will be done. The registration of electronic mortgage rights in Indonesia begins in 2020. The basis for implementing electronic mortgage rights registration is based on the Minister of Agrarian and Spatial Planning / Head of the National Land Agency of the Republic of Indonesia Number 3 of 2019 concerning Electronic Integrated Mortgage Rights Services. Provisions regarding the registration of mortgage rights in order to guarantee the legality of the mortgage certificate can be seen in the following table: Electronic Signature is a signature consisting of Electronic Information that is attached, associated or related to other Electronic Information that is used as a verification and authentication tool.

IV. Conclusion
The certainty and legal protection of an act committed by a person or legal entity is very important. The electronic registration system for mortgage rights is based on the Regulation of the Minister of Agrarian Affairs and Spatial Planning / Head of the National Land Agency of the Republic of Indonesia Number 3 of 2019 concerning Electronic Integrated Mortgage Services that came into force in 2020 as a form of development of the enactment of Industry 4.0. The impact of electronic registration of mortgage rights is the certificate issued. The certificate issued in electronic form has legality in accordance with the Regulation of the Minister of Agrarian Affairs and Spatial Planning / Head of the Land Agency and is strengthened by the Regulation of the Minister of Agrarian Affairs and Spatial Planning / Head of the National Land Agency of the Republic of Indonesia Number 3 of 2019 concerning the application of Electronic Signatures. The legality of the electronic certificate of mortgage affects the execution of the guarantee of the mortgage. Execution of mortgage rights is based on the existence of a mortgage right certificate. The mortgage certificate can be implemented electronically if the data contained in the certificate is in accordance with the guarantee agreement between the creditor and the debtor. If there are errors in entering data in the electronic system changes can be made. Changes to the data will affect the legality of the mortgage right certificate. If the data is not changed and there is a default or default from the debtor, then the mortgage right certificate in electronic form cannot be implemented. The mortgage certificate can have legal consequences for the cancellation of the mortgage certificate. Responsibility and risk for the cancellation lies with the creditor.