Juridical Analysis of the Decision on Renewal of Cultivation Rights Title Which Is Being Burdened by Mortgage Rights

Abstract

Background - One of the evidence of rights in the UUPA is the Cultivation Rights Title (SHGU), which is the right
to cultivate land directly controlled by the state which is given to companies within a certain time limit for
agricultural, fishery or livestock purposes. Companies that carry out business activities in the plantation sector are
given HGU and in the activities of credit binding and binding of collateral for plantation business financing facilities
HGU becomes the main guarantee whose binding as collateral is carried out in accordance with Law Number 4 of
1996 concerning Mortgage Rights on Land and Objects Related to Land (UUHT).
Purpose - The purpose of this study is to find out and analyze the value of mortgage rights on the renewal of
HGU which is encumbered by mortgage rights if the land area is reduced and to find out and analyze the
obstacles in managing the renewal of HGU which is encumbered by mortgage rights and how to overcome them
and to find out and analyze the obstacles in managing the renewal of HGU which is encumbered by mortgage
rights. This research is a type of normative juridical legal research, namely legal research that prioritizes
secondary data consisting of primary legal materials, secondary legal materials, and tertiary legal materials.
methodology - This research is a type of normative juridical legal research, namely legal research that prioritizes
secondary data consisting of primary legal materials, secondary legal materials, and tertiary legal materials. This
research is descriptive-analytical in nature, namely research that seeks to describe legal symptoms or legal facts
relating to the decision letter of renewal of SHGU which is being burdened by mortgage rights.
Findings - The land value of the renewed HGU which is encumbered by a mortgage can increase in economic
value compared to the initial value at the time of the APHT binding because at the time of the initial binding of the
mortgage, the HGU land was not productive / not yet producing. As for the obstacles to the HGU renewal process,
among others: abandonment of HGU land and land utilization for community interests such as schools, hospitals,
cemeteries and others so that it is possible to issue other rights on the land that has been utilized.
Originality - This research is relevant to the context of agrarian law and policy in Indonesia, In particular,
regulations on the renewal of business use rights that are being encumbered by mortgage rights