Legal Protection for Debtors for Auction of Objects of Dependency Rights Below the Limit Value in Padang City

The implementation of the Dependent Rights auction is a legal instrument used by creditors to obtain repayment of receivables for non-performing loans. In practice, the determination of the auction limit value often causes disputes if it is considered not to reflect a reasonable market value and has the potential to harm the debtor. This study aims to analyze the mechanism and procedure for determining the auction limit value of Dependent Rights at PT Bank Negara Indonesia (Persero) Tbk. Padang Branch as well as the form of legal protection for debtors whose object of Dependent Rights is auctioned below the limit value. This study uses an empirical juridical method with an analytical descriptive nature. The data was obtained through literature studies and field research, then analyzed qualitatively. The results of the study show that the determination of the limit value is carried out through two stages of assessment, namely at the time of granting credit and before the auction, using the services of the Public Appraisal Service Office as an independent appraiser. The mechanism reflects the existence of legal certainty through standardized and accountable procedures. Legal protection for debtors is provided in the form of preventive protection through credit restructuring, auction notifications, and the use of independent appraisers, as well as repressive protection through the right to file a lawsuit if there is an alleged violation of the law in the implementation of the auction. However, the available protections are still more predominantly formal-procedural than substantive.