The Urgency of Strengthening Creditor Legal Protection in Fiduciary Guarantee Agreements

Abstract

In a fiduciary guarantee agreement, both the fiduciary recipient and the fiduciary giver according to the fiduciary guarantee law are equally given legal protection. However, there are still weaknesses in legal protection for creditors, exacerbated by the practice of implementing fiduciary agreements in the field, among others in the form of not registering fiduciary objects (only stopping at making authentic deeds). Then, in the practice that occurs, the financial institution in entering into a financing agreement includes the words fiduciary guarantee. However, ironically, it is not made in a notarial deed and is not registered at the Fiduciary Registration Office to obtain a certificate. So, it is not surprising that due to such practice, cases of slow and difficult execution of fiduciaries are a problem. This research is to answer the question: the urgency of implementing strengthening legal protection for creditors in fiduciary guarantee agreements? To answer this problem, the author conducted normative legal research by looking at sociological conditions that occurred or were based on field facts. The results of this study indicate that a fiduciary guarantee that must be made with a Notary Deed, can provide legal protection if the process and procedures are following Law No. 42 of 1999 concerning Fiduciary Guarantee, and Fiduciary Guarantee was born since it was registered. In addition, in the practice of administering fiduciary guarantee agreements in Indonesia, legal protection efforts for creditors have not been fully implemented for fiduciary guarantee agreements. This is due to the juridical and non-juridical inhibiting factors in the form of inconsistencies between the mandates contained in the legal basis of fiduciary guarantees and the practices of their organizers.
 Keywords: legal protection, creditors, fiduciary guarantee