STRENGTHENING LEGAL CERTAINTY ON THE ELECTRONIC REGISTRATION SYSTEM OF FIDUCIARY DEED IN INDONESIA

Fiduciary guarantees constitute a type of guarantee commonly used by the business society to obtain loan from Banks or other financial institutions. As part of legal guarantee and for the sake of legal certainty, the document of fiduciary has to be registered. Administratively, since the government established an electronic fiduciary registration system, the system has in fact, not been fully supported by appropriate legal grounds. The prevailing law No 42/1999 silent on the registration system so that the registrar office conducts it manually up to year 2013. This research aims to explore and analyze regulations regarding the legal status of fiduciary agreements along with its electronic registration system and the role of Notary Public with the aim of providing recommendation to the ideal registration system supported by proper laws and regulations. Methodology of this study is based on normative legal research which carried out several approaches such as statutory approach, comparative approach and conceptual approach. In this paper, the normative legal research is also supported by empirical one. The results of the study essentially show potential problem on the legality of certificate of fiduciary notarial deed. In addition, legitimacy of registrar office is also questioned. Consequently, there is a need for amendment and harmonization of Law No. 45/1999 concerning Fiduciary Guarantee as well as its implementing regulations. Ultimately, the Indonesia fiduciary guarantee and its registration system will always be in harmony with the values of legal certainty, justice and usefulness.


INTRODUCTION
In the effort to support economic activities, particularly through the distribution of funds to the public, banks do this through their credit instruments, including through financing based on the principle of Sharia. 1 In essence, both activities are banking instruments functioned for provision of funds based on a loan agreement with a specified time period. Specifically, for credit lending, the basic elements considered for this bank credit are as follows: 2 (1) legal subject, (creditor and debtor); 3 (2) value of credit 4 (3) element of trust 5 (4) element of time, and (5) element of reward.
These five basic elements of credit lending cannot be ruled out except with an agreement. However, in its practice, credit lending requires the need for collateral. It is generally done by taking into consideration the business prospect, character, loyalty and reputation of the debtor for as long as the debtor is in business with the bank or other parties. 6 In short, many factors are always considered to determine the size of the credit loan and the calculated value of collateral 7 in order to protect the lending funds from proper and reasonable loss. 8 This is to anticipate risk for non-performing loans that may happen. 9 So far, efforts by banks to minimise risk of failing to pay eventually leads to financial institutions to oblige debtors to lend collateral which serves as a guarantee. In the case where the guarantee is in the form of collateral, then its value must be higher than the amount of credit agreed upon. Surely, the purpose of collateral is to protect credit from the threat of loss. In brief, the potential of loss must be anticipated with an instrument of guarantee. One form of this is collateral. 10 Juridically, fiduciary guarantee is regulated under Law 42 of 1999 on Fiduciary Collateral (Fiduciary Law). However, for as long as 20 years of its implementation, the Fiduciary Law has highlighted various flaws. Among others are lack of legal clarity and certainty regarding who shall register the deed of fiduciary; 11 and its collateral registration. 12 Also, the existence of issues relating to the legal basis and mechanism of electronic registration of fiduciary collateral at the Fiduciary Registration Office 13 and the legal certainty to creditors to execute the collateral. 14 In addition, the absence of a Central Fiducia Database on a national scale which records all fiduciary collateral, fiduciary objects as well as fiduciary collateral certificate; The flaws as such have led to the need for more study defined as the following research questions: Firstly, how are the laws define the legal status and position of fiduciary deeds in loan agreements as well as the obligation to register it electronically in Indonesia? Secondly, how is its implementation, particularly with respect to the recipient of the fiduciary to register the fiduciary deed electronically? Thirdly, what are the ideal laws needed to support electronic fiduciary collateral registration systems? 6 Kasmir, Dasar-Dasar Perbankan, Jakarta, PT. Raja Grafindo Persada, 2005, p.7. 7 Widjanarko, Hukum dan Ketentuan Perbankan di Indonesia, Jakarta, Pustaka Utama Grafiti,1994, p.26. 8 12 Fiduciary registration is basically a registration of deed and not a registration of fiduciary objects or collateral items. Consequently, any data changes to the fiduciary collateral data as recorded in the fiduciary certificate should be done by a notarial deed because it is an addendum to the contents of the fiduciary deed. 13 In the event that the online registration system is on a national scale, the provisions requiring registration by a Notary in the legal jurisdiction of the Law and Human Rights Regional Office become irrelevant and cannot be implemented. Therefore, the development of the information technology and online registration administration system which is only regulated in this Ministerial Regulation needs to be improved. From a theoretical viewpoint, this legal research uses Gustav Radbruch's concept of the three fundamental pillars of law, which are justice, legal certainty and expedience. 15 More specifically, its applies the justice theory by John Rawls 16 , and the theory of responsive law by Philipe Nonet. 17 The ground to use Gustav Radbruch's theory is that culturally, the law cannot stand alone formally among society, instead it must be directed towards its purpose, which is to regulate life peacefully, by way of: 18 (1) creating an organized society; (2) creating public order; and (3) creating equality within society.

RESEARCH METHODS
As indicated above, the focus of this research is the legality and legitimacy of the application of fiduciary collateral registration online in Indonesia. This matter is importance as the Fiduciary Law does not mandate the use of electronic systems for registration, but it acknowledges registration through offline or manual means. Considering that context, methodology used in this research is normative legal research 19 with focus on reviewing the law and regulation supported by empirical legal research. It does apply historical approaches and comparative approaches 20 based on selected legal sources.

3.1.Regulations Regarding Fiduciary Collateral Online Registration
As an economic instrument, fiduciary collateral institutions have been known since the Ancient Roman times. However, different to the concept of modern fiduciary, the old one was a legal institution with a wide range of slave or variety of objects which can be transferred to a third party. 21 This collateral institution then died down and then appeared again during the modern civilization through a series of precedents or court decisions. Finally, this concept is obtaining a specific law in Indonesia called the Indonesian Fiduciary Law enacted in 1999. 22 So far, the existence of Indonesian Fiduciary Law can be considered to provide legal certainity to the public. Strengthening the aspect of legal certainty through the Fiduciary Law is not restricted in general fiduciary collateral institutions all this time. However, this has been further developed through the addition of new norms which impose a criminal sanction 23 for the violation as well as the administrative order which must be obeyed. Among others, the obligation to register fiduciary collateral so that the said collateral can officially serve as a legal foundation for fiduciary recipient to invoke their preferred right attached to fiduciary recipient towards other creditors. 24 In brief, the enactment of the Indonesian Fiduciary Law indirectly causes the transfer of authority to execute collateral from the deed of fiduciary issued by the state. Consequently, the fiduciary collateral certificate holds executorial power, similar to a court decision that holds legal force. 25 To support the implementation of the Fiduciary Law, the government has issued some regulations regarding the implementation in accordance with its delegation of authority as stipulated in its Article 5(2) and Article 13 26 . Among others, Government Regulation No. 21 of 2015 concerning Fiduciary Collateral Registration Procedure and Deed of Fiduciary Collateral Fee. This regulation was enforced to replace Government Regulation No. 86 of 2000 on the same subject. From a substantial standpoint, there is no significant difference between the two 27 . However, the drafting of Government Regulation No. 21 of 2015 was a step to harmonize some technical regulations relating the fiduciary collateral. Among these regulations were The Decree of Ministry of Law and Human Rights No. 9 of 2013 concerning The Enactment of Electronic Registration of Fiduciary Collateral; and No. 10 of 2013 concerning The Procedure of Electronic Registration of Fiduciary Collateral. 28 The efforts to harmonize these regulations must be done as Government Regulation No. 86 of 2000 did not accommodate electronic registration of fiduciary collateral. This meant there is an absence of law which underlies the practice of electronic registration for fiduciary collateral. The problem is, this deficiency was not followed by amending Fiduciary Law up until this point. As a legal consequence, there exists flaws in the legality of the electronic registration of fiduciary collateral 29 . Surely, there is exists weakness from the aspect of legal certainty. From a normative aspect, there is no harmony between of the Fiduciary Law and the provisions in Article 3 of the Decree of The Ministry of Law and Human Rights No. 9 of 2013 30 . In other words, there is an inconsistency in the Ministerial Decree towards the Fiduciary Law.

Implementation of Provision on Electronic Registration of Fiduciary Collateral
Deed The enactment of an instrument to regulate electronic registration of fiduciary collateral is based on Government Regulation No 21 of 2015 31 , this essentially is a policy which cannot wholly resolve the issue relating to the deviations towards the hierarchy of law 32 and the principles of good governance. The Fiduciary Law yet to be revised is clearly the main weakness in the implementation of online registration of fiduciary collateral. Mean time, the Fiduciary Law alone has different issues which must be resolved through clear regulations. Some problems include: a. The growth of privately made fiduciary collateral deeds; b. Many notaries still include a clause concerning the transfer of ownership from the owner of the fiduciary collateral to the recipient of the fiduciary collateral; 33 and c. There exists a guarantee for legal certainty, specifically the authority for the registration of fiduciary collateral deeds. In an ideal legal perspective, the application of the fiduciary collateral online registration system should be done based off of the Fiducary Law. This means, the registration of fiduciary collateral deeds should be done by still requiring the fiduciary recipient to visit to the Fiduciary Registration Office 34 which is located at the residence of the fiduciary giver 35 . However, in practice, since the implementation of online registration, then the registration of the deed can be made without restriction to the territory or region. This legal reality has become reason for the emergence in disharmony between the Fiduciary Law and the Decree of The Ministry of Law and Human Rights No. 9 of 2013 concerning The Enactment of Electronic Registration of Fiduciary Collateral. However, this matter does not lessen the meaning and benefit of the aforementioned registration system which has successfully optimized the benefits of the fiduciary collateral systems for the business of banking in Indonesia. 36 It needs to be noted that data on objects as fiduciary collateral that has been recorded in the Ministry of Law and Human Rights of 2017 37 , shows the urgent need to provide a strong and clear legal basis to enact an online registration system for fiduciary collateral. To strengthen the said legal basis, it must start by revising the Fiduciary Law which is to be followed up with an improvement towards government regulations and other regulations below it. By amending the said law then inconsistent norms in other regulations relating to the enactment of electronic registration of fiduciary collateral in Indonsia can be removed. These various legal steps require complete and clear mapping so the legislative agenda can be done completely and properly. This legal research certainly shows that the Fiduciary Law naturally has its weaknesses, especially in regard to 38 the legal substance on: a. The position and level of priority of fiduciary collateral in comparison to other objects of guarantee; b. The possible online registration system for fiduciary collateral; and c. The time period for registration. 39 The whole problems identification can be approached from a normative aspect and evaluation from an empirical perspective at once, in the sense of by doing a comparative study. 33 Normatively, this raises problems regarding the ownership status of objects that are the object of collateral. Therefore, the fiduciary recipient is not the real owner. Fiduciary recipients are only holders of material security guarantees as well as other material guarantees such as mortgages, mortgages and mortgage rights. 34 39 Compare it with the provision in Bill of Sale Act (Chapter 24) Singapore which stated that the registration will only be valid for a period of one calendar year and can be extended.
Comparison between the registration system of fiduciary collateral with other countries cannot always done apple to apple. Apart from the difference between civil law and common law, the background and ratio legis of forming the law also differs. The same applies to the legal culture which exist in each individual country. The following results of the comparative study regarding fiduciary collateral is important to be considered.
(1) In the Phillipines, the concept of fiduciary collateral is known as the term 'chattel mortgage'. However, since the enactment of the Republic Act No. 11057, the term 'chattel mortgage' has been replaced with 'security interest' which covers a wider scope as it refers to all types of moveable property. In relation to the registration of fiduciary collateral, the Republic Act No. 11057 has developed an online registration system. However, the position of a fiduciary collateral certificate is not intended as legal product which holds execution power similar to a court decision which holds legal power. The certificate serves as evidence to signify that the fiduciary collateral has been registered 40 .
(2) In New Zealand, the provision concerning fiduciary collateral is found in the Personal Property Securities Act 1999 which regulates moveable property. However, unlike Indonesia's Fiduciary Law which does not regulate the online registration system for fiduciary collateral, Section 139 Part 10 of the Personal Property Securities Act 1999 states that an online registration system is the system which applies in New Zealand. Even so, the urgency to register fiduciary collateral deeds does not aim to obtain a fiduciary collateral certificate. This means, the executorial authority over collateral is still attached to the fiduciary collateral deed as the registration is only intended as a notice to the state in order to guarantee legal certainty and protection towards the parties involved.
(3) In Singapore, fiduciary collateral is regulated in the Bill of Sale Act (Chapter 24).
Juridically, the Bill of Sale Act is a document which underlies the collateral guarantee between the giver and recipient of the collateral. The concept of fiduciary collateral in the Bill of Sale (Chapter 24) is also acknowledges an online registration system for fiduciary collateral deeds. However, unlike the Indonesian legal system which requires the registration to be done by a notary public within a time period of 30 days since the making of the fiduciary collateral deed 41 , Article 4 (1) of the Bill of Sale Act (Chapter 24) requires the deed to be registered within the time span of three days since the making of the deed. 42 The mechanism and system of registration used is not specifically regulated. In other words, it is not emphasized which system applies for online registration of fiduciary collateral. Law, the Korean Act on Security also requires registration of collateral. Article 7 and Article 35 of the Korean Act on Security states that the obligation is a condition in order for the collateral to be legally effective, so the creditor has the right of preference towards the collateral concerned 45 . Moreover, based on Article 39, administrative authority to arrange registration of the fiduciary collateral rests on the Supreme Court. Interestingly, the registration system in South Korea is evidence that registration systems of fiduciary collateral can exist in both a manual form and electronic system.

3.3.The Development of an Ideal Fiduciary Collateral Deed Registration System for Indonesia (1) Evaluation of Current Registration System
Basically, the obligation to register fiduciary collateral online is not regulated under Indonesian Fiduciary Law. This causes the problem of legality of the registration procedures and legitimacy of the fiduciary collateral certificate issued. 46 The problem being, since the beginning, the government did not have a legal basis to carry out electronic systems to register fiduciary collateral. Moreover, the change in laws concerning the system and procedure of fiduciary collateral registration has gone beyond the authority of the House of Representatives in the process of legislation. 47 Constitutionally, the government along with the House of Representatives must amend the Fiduciary Law first to serve as a legal foundation for fiduciary collateral registration online. 48 It must be acknowledged that changing the fiduciary collateral registration to an online system does have its benefits as its implementation is really more effective and efficient. However, as it is not regulated under the Indonesian Fiduciary Law, therefore procedures like issuing certificates can potentially have its legality questioned. This means that its legal certainty is not guaranteed. If this policy is contested for a judicial review at the Supreme Court, then there may be a possibility that government regulations and ministerial decrees which have been the foundation for the online registration of fiduciary collateral to be null and void. Therefore, the normative solution must still be thought out thoroughly in order for the online 44   registration system which has been carried out all this time can obtain a clear and legitimate legal foundation as well as guarantee of legal certainty.

(2) Strengthening the Juridical Function of Fiduciary Collateral
The emphasis of the position of fiduciary collateral deeds requires the consideration of other consequences from the nature of an accesoir fiduciary collateral deed. This occurs when the principal debt which is guaranteed by fiduciary collateral is transferred to another party by way of cessie or subrogation. 49 When the principal/basic debt is transferred, then the status of the recipient of fiduciary collateral is also transferred. For that, a regulation concerning the position of the fiduciary collateral deeds as a mandatory agreement is required to guarantee more safety in credit transactions. That matter is not only important for parties of the bank to guarantee the credit given but also to guarantee a complete economic order, keeping in mind Indonesian Banking's functions is to push for economic growth and for social welfare. 50 It must be noted that the application of the online registration of fiduciary collateral deeds in Indonesia is behind in comparison to countries such as Phillipines, South Korea and New Zealand. 51 The three countries has clear legal instruments, which are: a. Republic Act No. 11057 in the Phillipines Legal System; 52 b. Act on Security Over Movable Property, Claims, etc in the South Korean legal system; 53 and c. Personal Property Securities Act 1999 in the New Zealand legal system. The set of rules mentioned above explicitly states that the system of registration for collateral is a system that is acknowledged and officially used. In this regard, the Republic Act No. 11057 as well as Personal Property Securities Act 1999 states that an online registration sytem is one the systems applied for collateral registration in its respective country. On the other hand, Act on Security Over Movable Property, Claims, etc still applies a dualist system of registration, both offline and online. Therefore, in a juridically normative view, the South Korean government did not confront any obstacles concerning the legality and legal certainty aspect of the registered deeds.
From the aspect of purposiveness, efficiency and effectivity, the government have responded properly to the global changes and needs of society by implementing an electronic registration system. 54 The seriousness of the Indonesian Government can also be seen through various advancements and developments in online deed registration systems since its enactment in 2013. Many changes have been made from only handling the registration of deeds to handling changes for fiduciary collateral certificates as well as removal of fiduciary collateral from the recordation book. Moreover, there is a plan to strengthen the system by integrating data with the Police institution as the issuing document of property ownership. Even so, the prevailing laws clearly does not explain the problem of the legal foundation of the registration system. Harmonisation between the Fiducary Law and the laws beneath it is still needed, especially in order to emphasize the legality and legitimacy of the existing system of online registration.
On the other hand, in regard to credit loans with banks, there are provisions which must be fulfilled relating to collateral in the form of money or property 55 , which must be stipulated in a fiduciary collateral deed. In accordance with Article 13 of the Fiduciary Law, fiduciary collateral deeds must be registered by the recipient of fiduciary collateral, or someone authorized by a power of attorney or a competent representative. This shows that the registering subject is of optional nature which means that it does not strictly apply only to the fiduciary recipient, such as a bank or a creditor, but also someone appointed. This signifies that the Fiduciary Law does not explicitly state a notary public as one of the parties that may apply for registration of a fiduciary collateral deed. For the purpose of administrative order and for data accuracy, the deed is done by a notary. The reason being notaries are considered to be more knowledgeable and understanding towards what has to be properly done. All are right in accordance with the fiduciary law and law on the notary public.

(3) An Ideal System for Fiduciary Collateral Registration a. The Developments System of Information Technology for Registration of Fiduciary Collateral Deeds
Up until this point, the legal basis concerning the online registration of fiduciary collateral deeds have not been legitimized adequately. Due to the fiduciary law, being a legal reference, was not prepared for an online registration model. From a regulatory standpoint, there is an inconsistency between Article 3 of the Ministerial Decree No. 9 of 2013 concerning The Enactment of Electronic Registration of Fiduciary Collateral and the elucidation of Article 11 of the Fiduciary Law. The Fiduciary Law does not delegate authority to the Minister to formulate regulations concerning the administrative procedures of fiduciary collateral deed registration electronically. The policy makes fiduciary collateral certificates issued by the Fiduciary Registration Office becomes weak in its legality. It also poses a serious problem it relates to the binding force of the deed towards the third party. Although, so far in its practice it has not been questioned. However, a critical academic study has found legal flaws that must be fixed and strengthened.
In general, the regulations regarding the online registration system of fiduciary collateral deeds have changed in terms of format and mechanism of deed registration as regulated under the Fiduciary Law. From the form of the regulation itself, the change can be seen as a step to simplify the procedure and increase effectivity and efficiency to the public.
Such policy is reflected in laws regulating fiduciary collateral registration procedure, including provisions of the fiduciary collateral deed fees. In relation to this, principles of this law is not very different to the provisions of the Fiduciary Law, except for the online registration system of fiduciary collateral deeds, which is only based on Government Regulation No. 21 of 2015. From the perspective of purposiveness, the concept of fiduciary collateral deed online registration clearly helps the society provide ease in registering their deeds. However, for its legal certainty, the online system still needs the support of a strong legal foundation.
Furthermore, taking into account that the scale and coverage of the regulations on fiduciary collateral registration deeds covers all of Indonesia, then there are steps to be taken to strengthen the reliability and accuracy of information techonology systems. It means that from a technical angle, it must be formulated with a system that is modern and supported with advanced technology. Moreover, also taking into account the online registration system of deeds requires accuracy and reliability, therefore this system must be designed and developed in order to avoid the system broken or experiencing any unnecessary technical difficulties. Besides that, notaries should also be educated to fully understand and to carry out the online system properly. This means the Fiduciary Registration Office as the online system operator as well as the fiduciary recipient, including the person authorized by a power of attorney, specifically a notary should all posses expertise and ability to make use of the system.

b. The Development of the National Record of Fiduciary Collateral
Pursuant to the publicity principle which means to disseminate information to a wide society, the implementation of the publicity principle in deed registration 56 , revision of fiduciary collateral certificate 57 , change in certificate, and removal of fiduciary collateral are essentially actualization of the principle of transparency in a credit agreement. This statement is not without basis. Transparency and accountability are principles of every administrative system. In fact, without these principles, the administrative system cannot be reliable. In many cases, the society needs access to information quickly and accurately. Therefore, the state's initiative to formulate a database of fiduciary collateral deeds on a national scale became important and urgent. The implementation of the publicity principle shows the role of the state in guaranteeing the validity of a deed as well as acknowledging the rights of the creditor towards the debtor. Apart from that, the principle of publicity also gives ease to accessibility to data and information of credit loans to third parties concerned. Surely, such information is important if the third party decided to make a credit agreement with the debtor. Easily accessed data and information will ensure that the future debtor is bound to the credit agreement with the creditor and using his property as a collateral. Furthermore, the legible data about the size of credit and time span for the obligation to repay. Valid and complete information and data will be a consideration for the third party to decide plans for business with the future creditor concerned. 56 The application appears in the obligation to register for fiduciary guarantee in order to contain several things such as: indentity of the fiduciary giver and recipient; as well as date, fiduciary collateral number, name and domicile of the notary who made the fiduciary collateral certificate. 57 The application appears in the obligation to repair the certificate to contain at least several things such as: (1) number and date of the fiduciary guarantee certificate to be repaired; (2) improvement data; and (3) remedial information.
From the perspective of administration, the Fiduciary Law should has avoided the practice of fraud by minimizing the potential of multiple registrations. The Fiduciary Law also has to clearly regulate the norms to avoid practices that may threaten the interests of the creditor, especially in order to guarantee the repayment of credit given. It must be noted that the position of a fiduciary collateral deed which is considered to be a formal requirement to obtain a fiduciary collateral certificate 58 , has made it possible for multiple registrations. Moreover, according to the Fiduciary Law 59 , the Fiduciary Registration Office is not obliged to carry out an assessment towards the correctness of the information included in the deed of fiduciary collateral. The Fiducary Registration Office only checks the data 60 . This means that the Fiduciary Collateral Office only carries out the function of registration, but it cannot prevent the occurrence of multiple registrations of property as previous fiduciary collateral. In this issue, the phrase "not doing an evaluation towards the validity" is not continued with an explanation about the meaning of "validity" (of data) indicates that the Fiduciary Registration Office can easily not carry out complete and thorough validity checking.
The Fiduciary Registration Office can easily record a plea without evaluating the possibility of the collateral being fluidized to previous creditor. The Fiduciary Registration Office can make records as a part of its administrative job, considering the recording process solely as a requirement for the fiduciary recipient to obtain a fiduciary collateral certificate. Such circumstances clearly do not align with the publicity principle in Fiduciary Law, which is expected to be able to guarantee legal certainty in the fiduciary collateral registration system. One of the steps that needs to be taken by the government is to develop a national database, which contains, in particular, information relating to fiduciary collateral from all fiduciary registration offices which operates online and in real time. This is not a difficult to do due to the support of advanced information technology. Learning from experiences of building a database in the field of trademark and patents, which can even be connected to a database abroad, presumably the design and development of such data should not be difficult to be realized. Data base on Patent and Trademark could be used as a benchmark.

CONCLUSION
Considering the above discourse analysis, it can be drawn some conclusions as follows: 4.1.Substantially, there is legal disharmony and inconsistency between the Decree of Ministry of Law and Human Rights No. 9 of 2013 concerning The Enactment of Electronic Registration of Fiduciary Collateral as that regulation does not have a basis neither is it mandated under the Fiduciary Law to establish online registration system. 4.2.There is a vagueness regarding who, by law, is obliged to register the fiduciary collateral deed. Article 13 (1) of the Fiduciary Law states that the obligation to register fiduciary collateral is attached to the fiduciary recipient. In its implementation, the registration can be authorized to a third party. As there exists no obligation for a notary public to create a fiduciary deed, the provision has potential to cause legal uncertainty, especially if such registration is done by a third party, besides the notary who made the 58 Read Explanation Article 13 paragraph (3) Fiduciary Law. 59 Explanation Article 13 paragraph (3) Fiduciary Law. 60 Checking Data is regulated in Article 13 paragraph (2) Fiduciary Law.
deed. In such a case, such provisions will increasingly open up more potential problem due to weak of legal certainty. 4.3.Revision of Fiduciary Law is an urgent necessity that must done. Because, although there is no judicial review of the Fiduciary Law or its regulations on implementation, the Fiduciary Law has several weaknesses and shortcomings. Among them, is the absence of a legal basis for the implementation of an online registration system for fiduciary collateral deeds. Similarly, there is a weakness in the legal aspect of issuing fiduciary collateral certificates. Along with that, revisions are also needed to eliminate potential problems such as the registration of multiple fiduciary deeds, and the negligence of a fiduciary recipient's obligation to register a fiduciary deed.
In connection to the aforementioned conclusion, it is advisable to do as follows: 4.4.Prepare a draft bill of amending Fiduciary Law, in accordance to global needs and needs of the business world. The main points of substance that need to be refined, among others are: (1) to establish that registration of a fiduciary collateral deed is mandatory and carried out with a nationally integrated online system (electronic); (2) to emphasize the provisions regarding role of Notary to register the fiduciary collateral deed at the Fiduciary Registration Office.
(3) to affirm the legal status of a fiduciary collateral deed certificate as a document which hold full executorial power. 4.5.Strengthen and develop a national fiduciary collateral deed database administered by the Fiduciary Registration Office, Ministry of Law and Human Rights, and to integrate the database system with the police force, as it often requires proof of ownership of property used as collateral. 4.6.Conducting socialization and educating the society after the amendment of the Fiduciary Law to business actors, banks and notaries as parties who play an important role in the implementation of Indonesian Fiduciary Law, particularly in making deeds and processing online registration of fiduciary collateral deeds to the Fiduciary Registration Office.