The Right to Cultivate (HGU) is regulated in Articles 28-34 of Law Number 5 of 1960 concerning the Basic Agrarian Law (UUPA). HGU can be encumbered with a Mortgage as mentioned in Article 4 paragraph (1) of Law Number 4 of 1996 concerning Mortgages on Land and Objects Related to Land. In reality, HGU land that is not optimally managed by its owner is designated as abandoned land. Regulations related to the designation of abandoned land are governed by Government Regulation No. 20 of 2021 concerning the Designation of Abandoned Land and the Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency of the Republic of Indonesia No. 20 of 2021 concerning the Procedures for the Regulation and Utilization of Abandoned Areas and Land as official operational guidelines. This research aims to analyze and explain the legal implications of the designation of abandoned land on the right to cultivate as an object of collateral. The research method used is normative juridical, with a case approach, statute approach, and conceptual approach. The data sources for this research were obtained thru a literature review of secondary data, which consists of primary, secondary, and tertiary legal materials. The research data were analyzed qualitatively. The research results show that the mechanism for the designation of abandoned land for Business Use Rights burdened with a Mortgage is normatively based on Article 33 paragraph (3) of the 1945 Constitution and Government Regulation No. 20 of 2021 concerning the Designation of Abandoned Land and the Regulation of the Minister of Agrarian and Spatial Planning/Head of the National Land Agency of the Republic of Indonesia No. 20 of 2021 concerning Procedures for the Orderly Management and Utilization of Abandoned Areas and Land. The designation of abandoned land for HGU objects burdened with a mortgage results in several legal consequences, namely: the cancellation of HGU and the transfer of land to state-controlled land, and the termination of the mortgage by law.