Rethinking Fiduciary Security Execution in Debtor Default Disputes

Case Study of Decision No. 297/Pdt.G/2023/PN BPP

Abstract

Fiduciary security constitutes a legal mechanism that enables creditors to execute collateral without prior court proceedings, provided that the fiduciary object has been duly registered and a Fiduciary Security Certificate has been issued. Despite its practical significance, the execution of fiduciary security in debtor default disputes continues to raise legal and normative concerns, particularly in balancing legal certainty and substantive justice. This study employs normative legal research by analyzing statutory regulations, legal doctrines, and judicial reasoning related to fiduciary security execution. The analysis focuses on Decision No. 297/Pdt.G/2023/PN BPP as a case study to examine how courts interpret and apply Law Number 42 of 1999 on Fiduciary Security in resolving default disputes. The findings demonstrate that the court granted execution rights to the creditor without litigation on the basis of formal compliance, while rejecting claims for material damages, collateral seizure, and compulsory monetary payments due to insufficient legal grounds. This ruling reflects a judicial effort to uphold legal certainty while preventing excessive enforcement measures. However, the study argues that fiduciary security execution should not be understood merely as a procedural entitlement of creditors, but as a legal mechanism that must be exercised proportionally and in good faith. Accordingly, this article rethinks fiduciary security execution by emphasizing the need to harmonize enforcement practices with the principles of fairness, proportionality, and substantive justice in debtor–creditor relations.