Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)

Abstract

Quo Vadis Copyright as Fiduciary Guarantee in Indonesian Legal Arrangement

Author(s): Achmad Busro, Dewi Sulistianingsih, Yuli Prasetyo Adhi, Pujiono

The copyright setting that is used as a fiduciary guarantee object is a new aspect in Indonesia. The provision of Article 16 Paragraph (3) of the Copyright Act stating that copyright can be used as an object of fiduciary guarantee affirms the beginning of the occurrence of copyright as the object of fiduciary guarantee. This study aims to provide empirical evidence of the application of copyright as fiduciary guarantee in Indonesia. By using socio-legal approach, the results of field research show that the copyright has not attracted attention from banking and financial institutions as fiduciary guarantee. The provisions of the Copyright Act are not necessarily well accepted by creditors, bank and financial institutions. The results further reveal that this phenomenon is mainly caused by the lack of implementing regulation specifying the method for financial institution to assess the value, market, ownership and authorization of copyright submission as the object of collateral. The copyright mechanism as the object of the fiduciary guarantee needs more technical rules. The creditor’s reluctance to accept fiduciary copyright as related to the problems that will arise probably results in legal uncertainty and investment security for creditor. While there are such limited literatures discussing the matter, the originality of this article lies in its consideration on the development of copyright as fiduciary guarantee object and its empirical evidence in developing countries.