Debtor’s Legal Standing in the Possession of Fiduciary Collateral in Indonesia

Abstract

The forms of collateral in Burgerlijk Wetboek (pawn and mortgages) are apparently less able to facilitate the needs of Micro, Small, Medium Enterpreneurs (MSMEs) who need capital but also still need to utilize the collateral objects. Fiduciary was created to accommodate the needs of the community to be able to obtain additional funds while still controlling collateral objects. These objects are still used in managing business activities and increase the chances of success of debt repayment so that this method is considered to be equally beneficial for debtors and creditors. The research that applies the normative juridical method will examine in depth about how the legal standing of fiduciary debtors and their correlation with the status of property rights, property rights, material security rights and rights and obligations of both the debtor and creditor, their existence in The Fiduciary Act (TFA) and their compatibility with this era.