Legal Consequences of Fiduciary Guarantee Execution Post Decision of Indonesian Constitutional Court

Abstract

Post Constitutional Court's decision regarding the 'executory power' of fiduciary guarantees which changed the rules of the execution of fiduciary guarantees, for those who are in debtor positions, the Constitutional Court's decision may be a solution to the problem of constitutional rights. However, for financing business actors as creditors, the decision is certainly a new obstacle in doing business. This study aims to analyze the juridical implications of the Constitutional Court's decision on fiduciary agreements made before the Constitutional Court's Decision (MK), as well as the juridical implications of fiduciary agreements or on fiduciary executions that have been carried out before the MK Decision Number 18/PUU-XVII/2019. This study found that the ratio of the decision of the MK Decision Number: 18/PUU/XVII/2019 Regarding Fiduciary Guarantees does not apply the principle of balance and has no legal consequences for the fiduciary guarantee agreement made before the decision is enforced. Legislators are expected to make new legal provisions regarding the executorial status in the fiduciary guarantee agreement to provide legal certainty to the parties who will make a fiduciary guarantee agreement regarding whether or not the enforceability of execution in the fiduciary guarantee agreement is recognized.