Author(s): Muhammad Ali Bahar
This study seeks to learn the engagement of financing with fiduciary guarantees at finance companies. Normative legal research is used in this study. The findings show that finance companies often made the engagement of the fiduciary guarantee objects after the fiduciary deed is issued with a notarial deed but yet to register the deed to the fiduciary registry office. The finance companies feel that they have not faced serious problems conducting business with fiduciary guarantees. They only register the fiduciary deed if debtors fail to keep their promises. On the other hand, during the execution, problems often arise, both during the seizure and the sale of the fiduciary object. Some default debtors make legal resistance during the seizure. Creditors often carried out forced executions without legal assistance and sold the fiduciary objects without public auctions or made under-table sales without the consent from the fiduciary grantor. This clearly violates the Fiduciary Guarantee Law. Violations in the financing agreement are not only done by the creditors, but also by the debtors. Debtors sometimes reduce the quality of the collateral objects and transfer the ownership of the collateral objects without the consent of the creditors.