The Need for Fiduciary Guarantee in Indonesia

Oct 13, 2025 by wbrum.org 20 views

Juridical Review of Fiduciary Guarantee which was auctioned not through the State Auction Agency (Study at PT. Kembang 88 Multifinance)

Introduction

In the rapidly developing context of Indonesia, the need for transportation facilities is increasing, driven by economic growth and the expansion of credit systems. As a result, the community is seeking credit using movable goods as collateral, while still being able to utilize these goods through finance institutions. When finance institutions provide credit for vehicle purchases, they require a guarantee of the vehicle. However, problems arise when the debtor experiences default, and leasing companies often auction collateral goods in public without involving the State Auction Center, an official institution appointed by the government. This action ignores the provisions stated in the Fiduciary Guarantee Law and can trigger serious legal issues.

The Need for Fiduciary Guarantee in Indonesia

The increasing demand for transportation facilities in Indonesia has led to a growing need for financing guarantees. The community is now looking for credit using movable goods as collateral, while they can still use these goods through finance institutions. When finance institutions provide credit for vehicle purchases, they require a guarantee of the vehicle. This guarantee is essential to ensure that the finance institution can recover its losses in case the debtor defaults. However, the process of auctioning fiduciary guarantees that do not follow the correct procedures raises various legal and administrative problems.

The Process of Auction Fiduciary Guarantees

The process of auctioning fiduciary guarantees involves several steps. First, the finance institution provides credit to the debtor, who uses the vehicle as collateral. If the debtor defaults, the finance institution can auction the collateral goods to recover its losses. However, in many cases, the auction is carried out without involving the State Auction Center, which is an official institution appointed by the government. This action ignores the provisions stated in the Fiduciary Guarantee Law and can trigger serious legal issues.

Obstacles in the Implementation of the Auction Process

One of the main obstacles in the execution process is when fiduciary guarantees are not registered and managed under the hand. If the debtor defaults, the facility provider becomes an ordinary creditor who does not have preference rights. In this case, the execution of fiduciary guarantees cannot be carried out for the benefit of their receivables. This can lead to a loss of state revenue, as many financing in the consumption, manufacturing, and industry sectors use unregistered fiduciary guarantees.

Legal Consequences

As a result of these practices, there are concerns from the government regarding the potential for embezzlement of non-tax state revenue. Many financing in the consumption, manufacturing, and industry sectors use unregistered fiduciary guarantees, which can significantly harm state revenue. Based on these findings, it is essential to strengthen the application of the rules in the Fiduciary Guarantee Law No. 42 of 1999. The affirmation of this regulation will be effective if accompanied by clear and firm sanctions for violators.

Recommendations

It is recommended that the Department of Law and Human Rights, through the Fiduciary Registration Office, conducts legal counseling to financing institutions related to fiduciary agreements. This is important to ensure finance companies involved in practices that are not in accordance with legal provisions to get administrative sanctions in accordance with Permenkeu Number 130/PMK.010/2012 concerning Registration of Fiduciary Guarantees.

Conclusion

Based on this analysis, it can be seen that the process of auctioning fiduciary guarantees that do not follow the correct procedures raises various legal and administrative problems. Required concrete efforts in applying law to protect the interests of the state and ensure the sustainability of finance institutions in carrying out its operations in accordance with applicable regulations. The consistent implementation of the Fiduciary Guarantee Law will provide legal guarantees for all parties involved in financing transactions.

Case Study: PT. Kembang 88 Multifinance

PT. Kembang 88 Multifinance is a finance institution that provides credit to individuals and businesses. The company has been involved in several cases of auctioning fiduciary guarantees without involving the State Auction Center. This action has raised concerns from the government regarding the potential for embezzlement of non-tax state revenue. Based on this case study, it can be seen that the process of auctioning fiduciary guarantees that do not follow the correct procedures raises various legal and administrative problems.

The Importance of Fiduciary Guarantee Registration

Fiduciary guarantee registration is essential to ensure that the finance institution can recover its losses in case the debtor defaults. The registration process involves several steps, including the registration of the fiduciary agreement, the collateral goods, and the auction process. If the debtor defaults, the finance institution can auction the collateral goods to recover its losses. However, in many cases, the auction is carried out without involving the State Auction Center, which is an official institution appointed by the government.

The Role of the State Auction Center

The State Auction Center is an official institution appointed by the government to oversee the auction process of fiduciary guarantees. The center is responsible for ensuring that the auction process is carried out in accordance with the provisions stated in the Fiduciary Guarantee Law. If the debtor defaults, the finance institution can auction the collateral goods through the State Auction Center. This ensures that the auction process is carried out in a transparent and fair manner.

The Need for Clear and Firm Sanctions

Based on the findings of this study, it is essential to strengthen the application of the rules in the Fiduciary Guarantee Law No. 42 of 1999. The affirmation of this regulation will be effective if accompanied by clear and firm sanctions for violators. This will ensure that finance institutions involved in practices that are not in accordance with legal provisions will get administrative sanctions in accordance with Permenkeu Number 130/PMK.010/2012 concerning Registration of Fiduciary Guarantees.

Conclusion

In conclusion, the process of auctioning fiduciary guarantees that do not follow the correct procedures raises various legal and administrative problems. Required concrete efforts in applying law to protect the interests of the state and ensure the sustainability of finance institutions in carrying out its operations in accordance with applicable regulations. The consistent implementation of the Fiduciary Guarantee Law will provide legal guarantees for all parties involved in financing transactions.
Frequently Asked Questions (FAQs) about Fiduciary Guarantee Auctioned Without the State Auction Agency

Q: What is a fiduciary guarantee?

A: A fiduciary guarantee is a type of collateral that is used to secure a loan or credit facility. It is a promise by the borrower to repay the loan or credit facility, and to transfer ownership of the collateral to the lender in case of default.

Q: What is the purpose of the State Auction Center?

A: The State Auction Center is an official institution appointed by the government to oversee the auction process of fiduciary guarantees. The center is responsible for ensuring that the auction process is carried out in accordance with the provisions stated in the Fiduciary Guarantee Law.

Q: Why is it important to involve the State Auction Center in the auction process?

A: Involving the State Auction Center in the auction process ensures that the auction is carried out in a transparent and fair manner. It also helps to prevent embezzlement of non-tax state revenue, as the center is responsible for ensuring that the auction process is carried out in accordance with the law.

Q: What are the consequences of auctioning fiduciary guarantees without involving the State Auction Center?

A: Auctioning fiduciary guarantees without involving the State Auction Center can lead to serious legal and administrative problems. It can also result in the loss of state revenue, as many financing in the consumption, manufacturing, and industry sectors use unregistered fiduciary guarantees.

Q: What is the role of the Department of Law and Human Rights in ensuring compliance with the Fiduciary Guarantee Law?

A: The Department of Law and Human Rights, through the Fiduciary Registration Office, is responsible for conducting legal counseling to financing institutions related to fiduciary agreements. This is important to ensure that finance companies involved in practices that are not in accordance with legal provisions get administrative sanctions in accordance with Permenkeu Number 130/PMK.010/2012 concerning Registration of Fiduciary Guarantees.

Q: What are the benefits of registering fiduciary guarantees?

A: Registering fiduciary guarantees ensures that the finance institution can recover its losses in case the debtor defaults. It also helps to prevent embezzlement of non-tax state revenue, as the registration process involves several steps, including the registration of the fiduciary agreement, the collateral goods, and the auction process.

Q: What are the penalties for violating the Fiduciary Guarantee Law?

A: The penalties for violating the Fiduciary Guarantee Law include administrative sanctions in accordance with Permenkeu Number 130/PMK.010/2012 concerning Registration of Fiduciary Guarantees. These sanctions can include fines, suspension of business operations, and even revocation of business licenses.

Q: How can finance institutions ensure compliance with the Fiduciary Guarantee Law?

A: Finance institutions can ensure compliance with the Fiduciary Guarantee Law by registering their fiduciary agreements, collateral goods, and auction processes with the State Auction Center. They should also conduct regular audits to ensure that their practices are in accordance with the law.

Q: What is the importance of transparency and accountability in the auction process?

A: Transparency and accountability are essential in the auction process to prevent embezzlement of non-tax state revenue and to ensure that the auction is carried out in a fair and transparent manner. The State Auction Center plays a crucial role in ensuring that the auction process is carried out in accordance with the law.

Q: How can the government ensure that the Fiduciary Guarantee Law is enforced effectively?

A: The government can ensure that the Fiduciary Guarantee Law is enforced effectively by providing clear and firm sanctions for violators. It should also provide regular training and education to finance institutions and other stakeholders on the importance of complying with the law.

Q: What is the future of fiduciary guarantee auctioned without the State Auction Agency?

A: The future of fiduciary guarantee auctioned without the State Auction Agency is uncertain. However, it is clear that the practice of auctioning fiduciary guarantees without involving the State Auction Center is not in accordance with the law and can lead to serious legal and administrative problems. It is essential that finance institutions and other stakeholders take steps to ensure compliance with the Fiduciary Guarantee Law to prevent these problems.