ASIATODAY.ID, MATARAM — A businessman from Mataram, the capital of Indonesia’s West Nusa Tenggara province, has filed a civil lawsuit against Bank Mandiri, the country’s largest state-owned lender, seeking more than IDR6.5 billion (approximately US$400,000) in damages over land ownership certificates that he claims have not been returned despite the full repayment of his loans.
The lawsuit, filed at the Mataram District Court, alleges unlawful conduct by PT Bank Mandiri (Persero) Tbk for retaining several land title certificates that had been pledged as collateral for investment loans. In addition to demanding the return of the documents, the plaintiff is seeking both material and non-material damages exceeding Rp6.5 billion.
According to the plaintiff’s legal team, the case centers on property rights and legal certainty for borrowers who have fulfilled all obligations under their loan agreements.
“Once a debt has been fully repaid, the mortgage security right is extinguished and the bank no longer has a legal basis to retain the collateral. What we are seeking is legal certainty and protection of our client’s property rights,” said Ahmad Saufi, one of the plaintiff’s attorneys, in a statement on Monday.
Loan Relationship Began in 2011
Court documents show that the dispute originated in 2011 when the plaintiff obtained four investment loan facilities from Bank Mandiri totaling approximately IDR4.63 billion.
As collateral, several parcels of land owned by the businessman were encumbered with mortgage rights through Indonesian land ownership certificates, known locally as Sertifikat Hak Milik (SHM).
During the same period, the plaintiff also secured financing from other major Indonesian lenders, including BNI, CIMB Niaga, and BRI. According to the lawsuit, this reflected the viability and growth prospects of the business at the time.
However, the company’s operations later faced significant challenges. The devastating Lombok earthquake in 2018 and the COVID-19 pandemic reportedly placed severe pressure on the business, particularly its hospitality operations.
Despite those difficulties, the plaintiff claims all loan obligations were ultimately fulfilled and the Bank Mandiri facilities were fully repaid in June 2022.
Certificates Allegedly Not Returned
The dispute emerged after the loans were settled.
The plaintiff alleges that, despite repeated requests over the past several years, the land certificates pledged as collateral have yet to be returned.
According to the legal team, numerous efforts were made to resolve the matter amicably, including direct communication with bank representatives, formal correspondence, and requests submitted through authorized family members.
The plaintiff also claims to have complied with a requirement to provide a notarized power of attorney through a notary affiliated with the bank. However, those efforts allegedly failed to secure the release of the documents.
“Our client has pursued every reasonable avenue in good faith for years, yet the certificates that legally belong to him have still not been returned,” Saufi said.
Other members of the legal team, including Usep Syarif Hidayat, Herman, and Hasan Basri, echoed the same position.
Legal Basis for Retention Challenged
One of the central issues in the lawsuit concerns the reasons cited by the bank for not releasing the certificates.
According to the claim, Bank Mandiri at one stage linked the return process to issues involving marital property status and the requirement that certain parties be present during document retrieval procedures.
The plaintiff argues that such administrative considerations cannot justify continued possession of the certificates after the underlying debt has been fully discharged.
“If there are administrative obstacles, appropriate legal solutions should be found without delaying the return of a customer’s property rights,” said attorney Hasan Basri.
Claim of Lost Business Opportunities
The businessman further alleges that the continued retention of the certificates has caused significant economic losses.
According to the lawsuit, the assets represented by the certificates hold substantial economic value and could have been used to obtain new financing, enter business partnerships, or support further business expansion.
The inability to access those assets is said to have resulted in the loss of multiple commercial opportunities over the past several years.
Based on those claims, the plaintiff is seeking compensation exceeding IDR6.5 billion.
In his petition, the businessman asks the court to declare the bank’s failure to return the certificates after loan repayment as an unlawful act and to order the unconditional release of all disputed land title documents.
“The most important issue for our client is legal certainty. He is simply asking for the return of his rights after fully meeting all obligations to the bank,” Saufi said.
The case is currently under examination at the Mataram District Court, where all claims and evidence presented by the plaintiff will be tested through judicial proceedings.
Bank Mandiri retains the right to submit its response, defense, and supporting evidence regarding the allegations.
As of publication, Bank Mandiri had not issued an official statement concerning the lawsuit. (AT Network)
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