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

T. Muhammad Ali Bahar (Faculty of Law, Universitas Sumatera Utara)
Tan Kamello (Faculty of Law, Universitas Sumatera Utara)
Suhaidi Suhadi (Faculty of Law, Universitas Sumatera Utara)
Saidin Saidin (Faculty of Law, Universitas Sumatera Utara)
Rio Hilmawan Bagas Trihasworo (Department of Business Administration, Coburg University of Applied Science)

Lex Scientia Law Review
Vol 7 No 1 (2023): Law, Justice, and Development: Theories and Practices in Indonesia and Global Con

Financing with fiduciary security in Indonesia raises justice-related concerns. This study focuses on analyzing contractual obligations in this type of financing within the context of justice. It reveals several key issues. Firstly, an imbalance of power exists between creditors and debtors, with creditors holding a stronger position in executing fiduciary security. Secondly, consumer protection and debtor rights remain inadequate, leading to injustice for financially vulnerable debtors who struggle to fulfill their payment obligations. Thirdly, dispute resolution tends to favor creditors, resulting in lengthy legal proceedings and high costs that hinder debtors from achieving justice. Additionally, the lack of public understanding and awareness about their rights in financing with fiduciary security further exacerbates the problem. These factors collectively contribute to injustice in financing with fiduciary security and call for improvements in the system to ensure fair treatment for all parties involved.