Analysis of Fiduciary Guarantee Arrangements and Legal Protection of Creditors in Fiduciary Agreements in Indonesia

Abstract

This research aims to explore the execution of legal safeguard within fiduciary agreement practices for creditors and to identify the shortcomings in offering legal protections to creditors in such agreements. Through the application of a normative juridical method, the following conclusions can be drawn: 1. The enactment of legal protections for creditors in fiduciary guarantee agreements originates from the creation of a notarized deed of fiduciary transfer and is further validated by registration with the Fiduciary Registration Office to acquire a fiduciary guarantee certificate. The act of registering a fiduciary guarantee satisfies the principle of publicity, thereby ensuring legal certainly for creditors in term of recovering their claims from debtors. 2. The are some noticeable deficiencies in the provision of legal protections for creditors within fiduciary agreements. In practical business operations involving fiduciary collateral objects, there are often cases where notarized deeds are not consistently registered at the Fiduciary Registration Office or are merely prepered using private deeds. Consequenly, the enforceability of these deeds diminishes, leading to a loss of preferential rights for the creditors.