Government Harmonizes Rules on Movable Property Guarantees and Fiduciary

The government is finalizing Draft Bill on Movable Property Guarantees (“Draft Bill"). Deputy Director of Civil Law Services at the Directorate-General of General Legal Administration (Directorate-General) of the Ministry of Law Endah Widyaningsih explained that the drafting of this policy is based on the inconsistency of regulatory instruments for guarantee institutions such as pawnshops, fiduciary, and warehouse receipts, which are still regulated separately in different laws.

“So, once this law is enacted, everyone and the international community will find it easier to deal with guarantees in Indonesia as there will be a single point of contact,” Endah told Hukumonline.

Furthermore, the draft amendment will compile Law No. 42 of 1999 on Fiduciary Security ("Law 42/1999") and Law No. 9 of 2006 on the Warehouse Receipt System, as amended by Law No. 9 of 2011 (collectively referred to as "Law 9/2006"). This legal instrument will also further regulate intellectual property products such as copyrights, trademarks, and patents that can be used as guarantee in the form of fiduciary security.

“The progress of the Draft Bill is currently undergoing harmonization at the Directorate-General at Ministry of Law, and it is hoped that it can be submitted to the House of Representatives (DPR) soon,” he concluded.