The Law on Debt Collectors Forcibly Seizing

So, what about the use of debt collectors to collect or forcibly seize our goods or vehicles?

Financing company/leasing and the public must both understand the rules that apply in this country, so that they do not harm each other and no one violates the law by complying with the applicable rules.

Regulation of the Minister of Finance

Regarding forced withdrawals by debt collectors, the Indonesian Ministry of Finance has issued regulations to prohibit financing/leasing companies from forcibly withdrawing vehicles from customers who have vehicle credit arrears. This rule is contained in the Regulation of the Minister of Finance of the Republic of Indonesia No.30/PMK.010/2012 concerning Fiduciary Registration for Companies Financing which was issued on October 7, 2012. This step was taken to protect the rights of customers and create fairer conditions in handling vehicle credit arrears.

Financing companies are required to register every credit transaction before a notary within a maximum of 30 days after signing the credit agreement. If the financing or leasing company does not carry out this registration, they may be subject to sanctions, including warnings or reprimands up to three times, freezing, and revocation of permits.

The process involves cooperation between the customer, the financing company, and a notary to create a fiduciary agreement before the vehicle is handed over to the customer. After that, the fiduciary agreement is registered at the fiduciary registration office. The debtor (customer) and creditor (financing company) receive a registration/fiduciary guarantee certificate as a step of protection against customer assets.

This aims to prevent financing or leasing companies from taking vehicles arbitrarily if there are late payments or bad credit. They cannot use the services of third parties, such as debt collectors, without following the correct legal procedures.

The process that should occur is that the financing or leasing company reports and submits an application to the district court by bringing evidence of the fiduciary agreement and the registration certificate that has been made. After being tried, the court will issue a decision, and if necessary, the vehicle can be taken over or confiscated by the court. Furthermore, the vehicle will be auctioned, and the proceeds will be used to pay off the debt to the financing or leasing company. The remainder will be returned to the customer.

Thus, this procedure provides legal protection for both parties and ensures fairness in resolving problematic credit.