News Update
Attorney Endang Hadrian Successfully Represents PT Bumi Mahkota Pesona in Annulment of 10-Hectare Land Auction
Jakarta — PT Bumi Mahkota Pesona welcomed the decision of the Tangerang District Court declaring unlawful and annulling the auction of its 10-hectare parcel of land located in Mekarsari Village, Rajeg District, Tangerang Regency. The auction had previously been conducted by the Jakarta Pluit Tax Office (KPP Pratama Jakarta Pluit) and the Tangerang II State Assets and Auction Service Office (KPKNL Tangerang II).
The decision, rendered on 19 June 2023, marked the successful conclusion of litigation handled by Dr. H. Endang Hadrian, S.H., M.H., legal counsel for PT Bumi Mahkota Pesona.
Accompanied by Attorney Endang Hadrian, Hendro Kimanto, Director of PT Bumi Mahkota Pesona, expressed appreciation to the Tangerang District Court for upholding the rule of law and restoring his company's property rights after what he alleged to be an unlawful deprivation through the auction process.
According to Dr. Endang Hadrian, the dispute originated when his client was accused of having outstanding Value Added Tax (VAT) and Income Tax (PPh) liabilities. Based on those allegations, the Jakarta Pluit Tax Office requested KPKNL Tangerang II to auction the company's land.
Dr. Endang explained that his client formally challenged the tax assessment. Although the objection was initially rejected by the Directorate General of Taxes, the company subsequently filed an appeal before the Indonesian Tax Court, which ruled in the client's favor. The Tax Court's judgment established that the company did not owe the alleged tax liabilities.
As a consequence, the previous auction of the company's land lacked a valid legal basis. PT Bumi Mahkota Pesona therefore filed a civil lawsuit against KPP Pratama Jakarta Pluit, KPKNL Tangerang II, and PT Bina Rencana Agung, the purchaser at the auction.
The case was decided by the Tangerang District Court in Case No. 791/Pdt.G/2022/PN.Tng.
During the proceedings, Attorney Endang Hadrian argued that the auction violated both the Tax Court's judgment and the applicable laws and regulations. Among the legal deficiencies identified were:
- The auction was conducted without a certification from the Village Head, despite the land being held under a Girik title requiring verification against the Village Letter C Register.
- The auction proceeded without an independent appraisal to determine the property's fair market value.
- The auction was conducted at an unreasonable reserve price, as the valuation was not established by an independent appraiser, and the auction purchaser could not be regarded as a good-faith purchaser under applicable legal principles.
Following its examination of the evidence, the Tangerang District Court granted the Plaintiff's claims.
"We are grateful that the Court granted our lawsuit by declaring Auction Minutes No. 300/2012, dated 10 July 2012, null and void as a matter of law. The Court further ordered that the 10-hectare property be returned to our client as its lawful owner," Dr. Endang Hadrian stated.
The decision demonstrates Endang Hadrian & Partners' experience in handling complex litigation involving tax disputes, unlawful government auctions, land ownership, administrative law, and the judicial protection of property rights before the Indonesian courts.
