"Usually new problems arise if the debtor fails to return the loan money at the agreed
time." (Widjaja & Yani, 2001).
The granting of credit is carried out based on an agreement and there is also a guarantee,
the granting of credit provided by the Bank is also based on trust, thus the granting of credit
is a grant of trust to the Debtor, the agreement between the Creditor and the Debtor can be
made into a written Credit Agreement.
The activities of economic actors are those who can finance their business activities with
their funds, while some do not have sufficient funds to finance their business activities so they
require sources of funds from other parties. In business practice, every investment effort
carried out somewhere requires funds. The funds in question can come from within or from
abroad, which are usually channeled through banking institutions or financial institutions
(Fuady et al., 2003).
These institutions are financial intermediaries, namely intermediaries between the
owner of the funds and the borrower. Because the money is lent to fund lenders, to ensure the
smooth return of the funds, it is bound by a security interest. Without credit financing from
these institutions for entrepreneurs' business movements, the economy could not run as it
does today. To be able to make Creditors willing to provide financing funds to Debtors,
regulations are needed that can guarantee fair treatment between Creditors if the Debtor is
unable to pay all of its debts. One of them is the Fiduciary Guarantee regulations
(Badrulzaman, 1991).
Fiduciary Guarantee is a guarantee that is based on trust between the Debtor/Fiduciary
Giver and the Creditor/Fiduciary Recipient). A fiduciary can accommodate the emptiness of
collateral rights and becomes a unique guarantee because the basis of collateral is trust. To
increase economic and trade progress in the field of credit and credit facilities, Fiduciary
Guarantee institutions are often used in business practices (Sibarani, 2001).
The enactment of Law No. 42 of 1999 concerning Fiduciary Guarantees, provides clear
and complete provisions regarding fiduciaries and also creates legal certainty. Regarding
Fiduciary Guarantees which have been widely used in lending and borrowing transactions or
business practices, they will also be affected if a monetary crisis occurs. The basis of the
Fiduciary Guarantee is trust, not a transfer of property or a pledge for a mortgage or
encumbrance (Sofwan, 1980).
"The basic thing that happens in this Fiduciary Guarantee is indeed related to the
relationship between creditors and debtors in resolving the main problem of debts and
receivables where monetary turmoil often occurs in Indonesia which affects national
economic life and creates difficulties in the business world in continuing its business,
including fulfilling obligations to creditors (Asikin, 2001).
If an execution occurs on the object of the Fiduciary Guarantee, the Fiduciary Giver is
obliged to hand over the object that is the object of the Fiduciary Guarantee, if the object that
is the object of the Fiduciary Guarantee consists of trading objects or securities that can be sold
on the market or stock exchange, the sale can be carried out in these places by the regulations
applicable legislation.
Apart from that, Fiduciary Guarantees can be removed due to matters as stipulated in
Article 25 of Law Number 42 of 1999 concerning Fiduciary Guarantees, namely: