Legal Analysis and Implementation of Mandatory Non-Execution Auctions in Indonesia: Challenges and Opportunities

Abstract

Auction, as a method of sales, has been practiced since ancient times, dating back approximately 450 years before Christ by the Greeks and Romans. In Indonesia, auctions have been regulated since 1908 with the issuance of Vendu Reglement, defining it as a public sale of goods through competitive bidding. Despite its regulatory framework, the implementation of compulsory non-execution auctions faces challenges including lack of public understanding, technical and administrative constraints, and potential for corruption. This qualitative descriptive study explores the legal framework and implementation of compulsory non-execution auctions in Indonesia, analyzing existing challenges and opportunities. Data were collected through secondary sources such as legal literature and documents, analyzed using Miles and Huberman's interactive model. Findings highlight auctions' roles in enhancing transparency, efficiency, and revenue generation, yet public perception remains hindered by concerns over legal issues and procedural complexities.The study recommends intensified public education, enhanced transparency, and strategic deregulation to simplify auction processes, thereby increasing public participation and reinforcing auctions' role in national asset management and economic development