Legal Literacy - In carrying out its business activities, financing companies have a fundamental obligation to understand and comply with all applicable regulations in Indonesia to mitigate potential legal risks. One crucial instrument in this regard is the registration of fiduciary security. Based on the Minister of Finance Regulation Number 30/PMK.010/2012, financing companies are required to register every credit transaction secured by fiduciary through a Notary no later than 30 days after the agreement is signed. Administratively, failure to carry out this registration can result in severe sanctions, ranging from written warnings, freezing of business activities, to revocation of operational licenses.

Problems of Registration and Execution in the Field

Theoretically, the registration of fiduciary security aims to provide reciprocal legal protection. The ideal flow starts from making an agreement before a notary before the vehicle is handed over, registration to the Fiduciary Registration Office, until the issuance of a security certificate that has executorial power. However, after the Constitutional Court Decision Number 18/PUU-XVII/2019, this executorial power can no longer be used arbitrarily. If the debtor objects to voluntarily surrendering the collateral object, the execution must be carried out through an application to the District Court.

Unfortunately,…