1. Setting the Scene: The Auction Is Just the Beginning

In Indonesian mortgage execution auctions, the official designation as Auction Winner (Pemenang Lelang) by the State Assets and Auction Service Office — known as KPKNL — is only the first step. Before the winner can fully enjoy ownership and physical possession of the asset, several interconnected legal and administrative stages must be completed, where each stage is the gateway to the next.

In practice, many auction winners have paid the full purchase price yet still face a long battle to take physical control: the debtor refuses to vacate, documents remain in process, or a third-party opposition (derden verzet) suddenly emerges. This is the heart of post-auction services — the full set of rights, obligations, and procedures that apply once the gavel has fallen.

2. The Regulatory Framework You Need to Know

As of 1 January 2024, Indonesia's technical auction framework is governed by Minister of Finance Regulation No. 122 of 2023 (PMK 122/2023), which replaced PMK 213/PMK.06/2020. From 1 January 2025, PMK 86/2024 governs the issuance of the Risalah Lelang (Auction Minutes), including the introduction of an Electronic Auction Minutes regime. These two regulations form the foundation of every post-auction action.

3. The Five Post-Auction Activities

Article 12(4) of PMK 122/2023 expressly recognises the term "jasa pascalelang" (post-auction services). In execution auction practice for mortgaged assets, this covers five key activities:

1. Issuance of legal documents — Excerpt of Auction Minutes (Kutipan Risalah Lelang) for title transfer, and Grosse Risalah Lelang for eviction execution.
2. Tax reporting and settlement — Land and Building Transfer Tax (BPHTB) under Article 109 of PMK 122/2023, plus Final Income Tax (PPh Final) validation.
3. Handover of original ownership documents from the seller to the winner — mandatory under Article 12(1) of PMK 122/2023.
4. Title transfer (balik nama) at the National Land Agency (BPN) for land and building assets.
5. Physical eviction of the object when still occupied by unauthorised parties.

4. The Rights of an Auction Winner — A Step-by-Step Roadmap

Step 1: Settle the Auction Price

Under PMK 122/2023, the winner must pay the Auction Payment Obligation — the principal price plus the Buyer's Auction Fee — within 5 working days after the auction. Once verified, the payment receipt can be downloaded electronically through the auction portal. This receipt is the foundation document for every subsequent administrative step.

Step 2: Settle Tax Obligations

Tax compliance has two sides. First, the PPh Final (Final Income Tax on land and building transfers) is the seller's obligation; KPKNL pays it and issues the Proof of Payment and PPh Validation to the winner — both required for BPN registration. Second, the winner — as buyer — must clear any outstanding Land and Building Tax (PBB) and pay the BPHTB (Transfer Duty), then validate the BPHTB at the local Regional Revenue Office.

Step 3: Collect the Two Critical Legal Documents

After full payment, the winner is entitled to two distinct documents — each with its own legal function:

• Excerpt of Auction Minutes (Kutipan Risalah Lelang) — Under Article 1(34) of PMK 122/2023, this is an authentic deed with full evidentiary value. It functions as the legal equivalent of a Sale and Purchase Deed (AJB) made by a Land Deed Official (PPAT) and is the basis for title transfer at BPN under Article 41(1) of Government Regulation No. 24/1997 on Land Registration.
• Grosse Risalah Lelang — Bearing the heading "Demi Keadilan Berdasarkan Ketuhanan Yang Maha Esa" (For Justice Based on the One Almighty God), this document has executorial force equivalent to a final court judgment. It is the basis for filing an eviction execution at the District Court when occupants refuse to leave voluntarily.

The procedural rules for both documents are now detailed in PMK 86/2024, including the application procedure.

Step 4: Receive Original Ownership Documents

Once payment is complete, the seller is obliged to hand over all original ownership documents of the auction object. This is the logical consequence of legal ownership having transferred through the auction mechanism. Winners who follow the proper procedure are also protected as good-faith purchasers — a position consistently upheld by Indonesian Supreme Court jurisprudence.

Step 5: Take Physical Control — Even When There Is Resistance

The most common obstacle for auction winners is resistance from occupants. When occupants refuse to vacate voluntarily, the winner may file an eviction execution petition directly with the Head of the District Court — without filing a lawsuit first. The legal basis: Article 200(11) of the Herzien Inlandsch Reglement (HIR), reinforced by Supreme Court Circular Letter No. 4 of 2014 (SEMA 4/2014), which expressly states that for mortgage executions conducted by creditors through the auction office, eviction can be filed directly with the District Court.

The eviction procedure:

1. Winner files the petition with the Grosse Risalah Lelang attached.
2. Court issues a formal warning (aanmaning) to the respondent.
3. If the respondent ignores the warning within 8 days, the Court Head issues an Eviction Order.
4. The Bailiff (Jurusita) executes the eviction — with police support if necessary.

5. The Limits of KPKNL's Responsibility

KPKNL is responsible for ensuring the auction procedure complies with the law, issuing the Risalah Lelang accurately, and reporting the auction to relevant institutions — including for BPHTB purposes under Article 109 of PMK 122/2023.
However, KPKNL is not responsible for the physical condition of the object, is not obliged to actively conduct eviction, and does not bear the risk of any dispute attached to the object. This is the classic caveat emptor (buyer beware) doctrine of auction law: the buyer is deemed to have known and accepted the condition of the object at the time of bidding.

6. Two Critical Mistakes to Avoid

In practice, two issues are most often overlooked — and they are the ones that decide whether the auction investment can actually be realised:

• Mistake #1: Delaying the title transfer (balik nama). The faster the title transfers formally, the stronger the winner's legal position. Delay creates exposure to subsequent claims and complicates any disposal strategy.
• Mistake #2: Waiting for conflict before requesting the Grosse Risalah Lelang. Request it from the outset. Do not wait for an occupant to refuse to leave — by then, you have already lost weeks.

7. The Strategic Takeaway

For corporations actively acquiring assets through execution auctions, understanding the post-auction flow is not a procedural detail — it is a core component of acquisition risk management. The difference between an auction "win" and a realised investment lies in the discipline of the five stages above.

Treat post-auction execution like any other M&A closing process: with a clear playbook, owners for each step, and a documented timeline.

📩 Talk to Sandiva

Considering an execution auction acquisition, or already a winner facing post-auction obstacles? Sandiva auction team can guide you through the full five-stage post-auction process, from document issuance to physical eviction. 

Visit https://sandiva.co/ or message us directly at https://wa.me/+6285757051234 to schedule a consultation.