Contractual Obligations in Financing with Fiduciary Security in Indonesia in the Context of Justice

Abstract

Financing with fiduciary security is a popular form of financing in Indonesia. However, in the context of justice, there are several aspects that need to be considered regarding this contractual arrangement. This research aims to discuss the study of contractual obligations in financing with fiduciary security in Indonesia within the context of justice, with a focus on relevant aspects both theories and practices. This research intends to analyze the contractual obligations in financing with fiduciary security within the context of justice in Indonesia. The research revealed that financing with fiduciary security in Indonesia presents several justice-related issues. Firstly, there is an imbalance of power between the fiduciary giver (creditor) and the fiduciary receiver (debtor). The fiduciary giver tends to hold a stronger position in executing fiduciary security, while the fiduciary receiver may face difficulties in protecting their rights. Secondly, consumer protection or debtor protection in financing with fiduciary security is still inadequate. Although there are regulations in place governing debtor rights, their implementation remains limited. This can lead to injustice for financially vulnerable debtors who are unable to fulfill their payment obligations. Thirdly, dispute resolution regarding financing with fiduciary security tends to favor the fiduciary giver. Lengthy legal proceedings and high costs can impede debtors from achieving justice. Moreover, the lack of understanding and awareness among the public regarding their rights in financing with fiduciary security can also be problematic.