Regulation on Executing a Fidusia Collateral Security

Thirteen years ago, Law No.42 of 1999 on Fidusia Collateral (“Fidusia Law”), was enacted to establish a legal framework for parties to an agreement to secure movable property as collateral. This was followed by the establishment of the Fidusia Collateral Registration Office through the issuance of Presidential Regulation No.139 of 2000 and Government Regulation No.86 of 2000 on the Procedure for Registering Fidusia Collateral and the Costs of making a Fidusia Collateral Deed. After over a decade, the Chief of National Police has finally opted in, by issuing Regulation No.8 of 2011 on Executing a Fidusia Collateral Security (“Regulation”)

The Regulation regulates the procedure for a non-defaulting party (Lender) of an agreement who has a Fidusia Collateral claim on movable property’s (tangible/intangible), to execute/acquire the collateral from the controller/defaulting party.