Establishing fair agricultural land mortgage regulations

• Author: Jenda Ingan Mahuli
• Position: University of Upmi Medan
• Pages: 281-292

European Journal of Economics, Law and Social Sciences

IIPCCL Publishing, Graz-Austria

Vol. 4 No. 2

June, 2020

ISSN 2519-1284

Acces online at www.iipccl.org

281

Establishing fair agricultural land mortgage regulations

Jenda Ingan Mahuli

UniversityofUpmiMedan

Abstract

Amortgageis denedasa personsrelationship withthe landpossessed byanother person

who has debt from that lender. As long as the debt has not been paid in full, the land remains

in possession of the money lender (pledgor). During this temporary possession period, the

total land yields are the right of the pawnbroker which forms the debt interest. The land

redemption depends on the willingness and ability of the pledgee. A large number of

mortgages last for years, decades, and even some are passed onto the heirs of the pledgee and

the pledgor as the pledgee is unable to redeem his land.

Keywords: AgriculturallandmortgagedebtsCustomaryLawestablishingfairregulations

Introduction

Article  paragraph  of Law no   of  on Basic Regulations on Agrarian

PrinciplesofofStateGazeeoftheRepublicofIndonesiaNoSupplement

totheStateGazeeoftheRepublicofIndonesiaNohereinaerreferredtoas

BALNoofstatestemporaryrightsasreferredto inArticleparagraph

leerhincludingtherightofmortgage rightofprotsharingrightoflodgingand

rightofagriculturallandleasearesettolimittheirprovisionsconicting tothislaw

and those rights shall be abolished within a short period of time. From the contents of

Articleparagraphleerhtherighttobestudiedistherightofmortgagewhere

the object is agricultural land mortgage. This study is to elaborat on how to establish

amodeloffairagriculturallandmortgageregulationsandnotconictingtolawsand

unforcingAmortgageisasocialinstitutioninavillagewhereapersonneedsmoney

forworkbypawningouthislanduntilhecanredeemitThedenitionofagricultural

landmortgageis legallyregulated inthe GeneralElucidation ofLaw noPrpof

on Determination ofAgricultural LandArea by thePresident of the Republic

ofIndonesia hereinaerreferred toas LawNo Prp of numberleer a

namely: This regulation also regulates agricultural land mortgage. A mortgage is

denedasapersonsrelationshipwiththelandpossessedbyanotherpersonwhohas

debt from that lender. As long as the debt has not been paid in full, the land remains

in possession of the money lender (pawnbroker). During this temporary possession

period, the total land yields is the right of the pawnbroker which forms the debt

interest. . The redemption of the land depends on the willingness and ability of the

mortgaging. A large number of mortgages last for years, decades, and even some are

passed onto the heirs of the pledgee and the pledgor as the pledgee is unable to redeem

his land. In the meantime, in several regions, the term is also known as pledge where

the land does not only yield interest, but also installment. This type of mortgage is

calledinstallment sales  Unlike theusual mortgage in the installment saleaer