Constitutional Justice Daniel Yusmic P. Foekh reading out the Court’s considerations at the ruling hearing of the judicial review of Law No. 42 of 1999 on Fiduciary Security, Tuesday (8/31/2021) in the plenary courtroom. Photo by Humas MK/Ifa.

---

Tuesday, August 31, 2021 | 17:49 WIB

JAKARTA, Public Relations—The Constitutional Court (MK) passed a ruling to reject the entire judicial review petition of Law No. 42 of 1999 on Fiduciary Security, said Chief Justice Anwar Usman alongside the other constitutional justices at the pronouncement hearing of the Decision No. 2/PUU-XIX/2021 on Tuesday, August 31, 2021.

“[The Court in its] verdict adjudicated, rejects the Petitioner’s provisional petition; rejects the Petitioner’s petition in its entirety,” said Justice Anwar Usman reading out the verdict.

The petition was filed by Joshua Michael Djami who works at a financing company. He challenged Article 15 paragraph (2) of the Fiduciary Law and its elucidation.

The Court held that Article 15 paragraph (2) of the Fiduciary Law and its elucidation had been petitioned before by Apriliani Dewi and Sari Agung Prabowo and ruled in the Decision No. 18/PUU-XVII/2019, in which the Court granted the a quo petition. The seizure of goods purchased on credit but in arrears must not be carried out independently and forcibly, but must go through the courts. However, the Petitioner, who works as an internal debt collector, believed otherwise.

The Court maintained that the Petitioner had not understood the Decision No. 18/PUU-XVII/2019 in full, in relation to the executorial power of fiduciary security guarantee. The provision that prohibits unilateral execution, instead requiring a district court approval, has provided legal equality to debtors and creditors and prevented arbitrariness.

“The execution of fiduciary security through the district court is merely an alternative in case there is no agreement between the creditor and the debtor with regard to default and voluntary submission of fiduciary object by debtor to creditor. Meanwhile, toward debtors who admit to defaulting and has voluntarily submitted the fiduciary object, the execution of fiduciary security can be done by the creditor or even the debtor,” said Constitutional Justice Daniel Yusmic P. Foekh reading out the Court’s opinion.

The Court held that the legal considerations in the Decision No. 18/PUU-XVII/2019 had considered the juridical aspects and the constitutionality issue that the Petitioner challenged, especially in relation to the execution of fiduciary security.

Also read:

Execution of Fiduciary Security Certificate Challenged

Petition on Fiduciary Law Revised

Joshua Michael Djami challenges Article 15 paragraph (2) of the Fiduciary Law, which reads, “The Fiduciary Security Certificate as referred to in paragraph (1) has the same executorial power as that of a final and binding court decision.” He also challenges its elucidation, which reads, “In this provision, the term ‘executorial power’ means that it can be implemented directly without going through any court and it is final and binding to the parties in executing such decision.”

The Petitioner works as a certified internal debt collector at a financing company. He confessed of having faced difficulties due to the article, such as decline of income, which hindered the execution of fiduciary objects because debtors often refused it.

The judicial review of the a quo law is closely related to the settlement and regulation of fiduciary objects, which involves debt collectors, as well as the human resources, procedures, and management. The Petitioner’s job in financing and the execution of collateral means that he had the legal standing to file the a quo petition, he maintained.

Writer        : Nano Tresna Arfana
Editor        : Nur R.
PR            : Muhammad Halim
Translator  : Yuniar Widiastuti (NL)

Translation uploaded on 9/2/2021 07:59 WIB

Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian versions, the Indonesian version will prevail.

---