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CRIMINAL PENALTY ON FIDUCIA SECURITY

If you or your family member purchases a movable asset while such asset is secured by way of fiducia security, you may need to be careful because you may be subject to imprisonment if you sell or transfer the secured asset. The provision on the imprisonment has been clearly regulated under Article 36 of Law No. 42 of 1999 regarding Fiducia Security (Fiducia Law).

Pursuant to the Fiducia Law, a person which is subject to fiducia security is prohibited from transferring, encumbering or renting the fiducia object without prior written consent from the fiducia grantee. A breach of such provision is subject to imprisonment at a  maximum of 2 (two) years and penalty at a maximum of Rp. 50,000,000 (fifty million Rupiah).

The imprisonment is a serious penalty since there have been cases decided by courts in Indonesia which punish the relevant parties to prison due to violation of Article 36 of Fiducia Law. You may do your own research by following the link: http://putusan.mahkamahagung.go.id and entering the key word: “criminal act of transferring fiducia security” and clicking “submit query”.

-MRT-