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, practices in the field often show irregularities where financing companies only register the fiduciary after the debtor defaults. In addition, the use of third-party services or debt collectors to carry out forced withdrawals is still rife despite various rules prohibiting such repressive practices. This condition is exacerbated by the imposition of non-transparent "withdrawal fees" and unilateral account blocking policies that prevent debtors from fulfilling their remaining obligations. This phenomenon has attracted the attention of the Indonesian House of Representatives and the Financial Services Authority (OJK) to encourage stricter regulations in protecting consumer rights.

Consignment Institution as a Juridical Solution

If the debtor has good intentions to make payments but is rejected by the financing company for reasons that are not legally based, the public can take the path of Consignment or deposit of payments through the District Court. This mechanism is regulated in detail in the Civil Code, specifically from Article 1404 to Article 1412. Through this instrument, the debtor can submit a cash payment offer which, if rejected by the creditor, can be continued with the deposit of money or goods to the court.

Juridically, an offer of payment followed by a deposit (consignment) that is legal in the eyes of the law has a position equivalent to payment. As regulated in Article 1406 of the Civil Code, this step provides maximum protection for the debtor, namely freeing the debtor from the agreement, stopping the accrual of interest from the date of deposit, and transferring the risk of the goods to the creditor. Thus, consignment becomes a definitive legal protection instrument for debtors to face the arbitrariness of creditors in the process of resolving non-performing loan disputes.