Implications of the Constitutional Court Decree regarding Fiduciary Guarantee on the Authority of Creditors of Financing Institutions in A Muslim country

Abstract

Financing is an important factor in helping economy people, including in Indonesia as one of the most democratic Muslim countries. Provision of financing facilities is followed by binding fiduciary objects to collateral objects. There is a Constitutional Court Decision No. 18/PUU-XVII/2019 has changed the meaning of the phrases "executive power" and "default of promise" which so far have led to multiple interpretations in Article 15 of the Law on Fiduciary Security, thus implicating the authority of Financing Institution creditors as fiduciary recipients of collateral. This article uses a juridical empirical approach with analytical descriptive research specifications, with secondary data analyzed qualitatively. With the Constitutional Court Decision, it has an impact on the creditor is authority not to be
able to withdraw fiduciary collateral from the debtor's hand if the debtor does not voluntarily recognize his negligence which has breached the promise and performs the delivery of the collateral object. If the debtor objects to surrender the collateral object to the creditor, the execution of the collateral object can be carried out by a court decision which has permanent legal force.