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LAW OF THE REPUBLIC OF INDONESIA

NUMBER 42 OF 1999
ON
FIDUCIARY SECURITY

BY THE GRACE OF GOD ALMIGHTY

PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering:
a. that the huge and ever-increasing requirements of the business sector for the availability of funds, need to
be balanced with clear and complete provisions of the laws that govern security institutions;
b. that Fiduciary Security as a form of security institution up to now is still based on jurisprudence and has
yet to be regulated in laws and regulations completely and comprehensively;
c. that in order to fulfill legal needs that can further accelerate national developments and to guarantee legal
certainty as well as be able to provide legal protection for interested parties, it is necessary to establish
complete provisions on Fiduciary Security and said security needs to be registered to the Fiduciary
Registration Office;
d. that based on the considerations as referred to in letters a, b and c it has been deemed necessary to
enact a Law on Fiduciary Security.

Observing:
Article 5 paragraph (1), Article 20 paragraph (1) and Article 33 of the 1945 Constitution;

By the Mutual Consent of:

THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OF INDONESIA
and
THE PRESIDENT OF THE REPUBLIC OF INDONESIA

To enact:
LAW ON FIDUCIARY SECURITY

CHAPTER I
GENERAL PROVISIONS

Article 1

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 Under this Law, the following definitions are employed:
1. Fiduciary is the transfer of ownership right over an asset on the basis of trust, under the condition that the
asset of which the ownership right is transferred remains under the possession of the asset owner.
2. Fiduciary Security is the security right over movable assets both tangible and intangible and immovable
assets, especially buildings that cannot be encumbered by mortgage as referred to in Law Number 4 of
1996 on Mortgages that remain under the possession of Fiduciary Guarantor, as collateral for the
settlement of certain debts, which provides priority for Fiduciary Obligee over other creditors.
3. Receivables are the rights to receive payments.
4. Assets are anything that can be owned or transferred, either tangible or intangible, registered or
unregistered, movable or immovable, which cannot be encumbered by mortgage or hypothec.
5. Fiduciary Guarantor is an individual or corporation that owns Assets that become the Fiduciary Security
object.
6. Fiduciary Obligee is an individual or corporation which has receivables of which the payment is secured by
Fiduciary Security.
7. Debt is an obligation which is stated or may be stated in the amount of money either in Indonesian
currency or other currencies, either directly or contingently.
8. Creditor is a party that has receivables due to an agreement or law.
9. Debtor is a party that has debts due to an agreement or law.
10. Any Individual is a person or corporation

CHAPTER II
SCOPE

Article 2
This Law applies to any agreement that aims to encumber Assets with Fiduciary Security.

Article 3
This Law does not apply to:
a. Mortgage in relation to land and buildings, as long as the prevailing laws and regulations determine that
security for said assets must be registered;
b. Hypothec over registered ships with gross tonnage of 20 (twenty) M3 or more;
c. Hypothec over aircrafts; and
d. Pledge.

CHAPTER III
ENCUMBRANCE, REGISTRATION, TRANSFER AND REMOVAL OF FIDUCIARY SECURITY

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 Division One
Fiduciary Security Encumbrance

Article 4
Fiduciary Security is a follow-up agreement of a principal agreement that creates an obligation for the parties to
fulfill an obligation.

Article 5
(1) The encumbrance of Assets with Fiduciary Security shall be drawn up with a notarial deed in the
Indonesian language and constitutes a Fiduciary Security deed.
(2) The drawing up of the Fiduciary Security deed as referred to in paragraph (1) shall be subject to a fee of
which the amount shall be further regulated under a Regulation of the Government.

Article 6
The Fiduciary Security deed as referred to in Article 5 shall at least contain:
a. identities of Fiduciary Guarantors and Obligees;
b. data on principal agreements that are secured by fiduciary security;
c. description of Assets that become Fiduciary Security objects;
d. values of security; and
e. values of Assets that become Fiduciary Security objects.

Article 7
Debts of which the settlement is secured by fiduciary security may be in the form of:
a. existing debts;
b. debts that will arise in the future that have been agreed upon in a certain amount; and
c. debts of which the amounts may be determined at the time of execution based on principal agreements
that create the obligation to fulfill a performance.

Article 8
Fiduciary Security may be granted to more than one Fiduciary Obligee or to proxies or representatives of said
Fiduciary Obligees.

Article 9
(1) Fiduciary Security may be granted on one or more Asset units or types, including receivables that either
exist at the time the security is granted or will be obtained later.
(2) The encumbrance of security on Assets or receivables that will be obtained later as referred to in
paragraph (1) does not need to be conducted with a separate security agreement.

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 Article 10
Unless otherwise agreed upon:
a. Fiduciary Security shall include any proceeds which derive from Assets that become Fiduciary Security
objects.
b. Fiduciary Security shall include any insurance claims, in the event that Assets that become Fiduciary
Security objects are insured.

Division Two
Fiduciary Security Registration

Article 11
(1) Assets that are encumbered with Fiduciary Security must be registered.
(2) In the event that the Assets that are encumbered with Fiduciary Security are located outside the territory of
the Republic of Indonesia, the obligation as referred to in paragraph (1) remains valid.

Article 12
(1) The Fiduciary Security registration as referred to in Article 11 paragraph (1) shall be conducted at the
Fiduciary Registration Office.
(2) For the first time, the Fiduciary Registration Office was established in Jakarta with a working area that
encompasses the entire territory of the Republic of Indonesia.
(3) The Fiduciary Registration Office as referred to in paragraph (2) is included in the scope of duties of the
Department of Justice.
(4) Provisions on the establishment of Fiduciary Registration Offices for other regions and the stipulation of
their working areas shall be regulated under a Decree of the President.

Article 13
(1) Application for the Fiduciary Security registration shall be conducted by Fiduciary Obligees, their proxies
or representatives by enclosing the statement of Fiduciary Security registration.
(2) The registration statement as referred to in paragraph (1) shall contain:
a. identities of Fiduciary Guarantors and Obligees;
b. dates, Fiduciary Security deed numbers, name and domicile of the notary who draw up the
Fiduciary Security deed;
c. data on principal agreements which are secured by fiduciary security;
d. description of Assets that become Fiduciary Security objects;
e. values of security; and
f. values of Assets that become the Fiduciary Security objects.

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 (3) The Fiduciary Registration Office shall include Fiduciary Security in the Fiduciary Register on the same
date as the date of receipt of the registration application.
(4) Further provisions on procedures for the Fiduciary Security registration and registration fees shall be
regulated under a Regulation of the Government.

Article 14
(1) The Fiduciary Registration Office shall issue and deliver Fiduciary Security Certificates to Fiduciary
Obligees on the same date as the date of receipt of the registration application.
(2) The Fiduciary Security Certificate, which is a copy from the Fiduciary Register, shall contain notes on the
matters as referred to in Article 13 paragraph (2).
(3) Fiduciary Security shall be issued on the same date as the date of the Fiduciary Security registration in the
Fiduciary Register.

Article 15
(1) The Fiduciary Security Certificate as referred to in Article 14 paragraph (1) shall be affixed with the words
“DEMI KEADILAN BERDASARKAN KETUHANAN YANG MAHA ESA”.
(2) The Fiduciary Security Certificate as referred to in paragraph (1) has the equal executorial title to a court
decision that already has a permanent legal force.
(3) If debtors are in defaults, Fiduciary Obligees have the rights to sell Assets that become Fiduciary Security
objects on their own authority.

Article 16
(1) If there are any amendments to the matters that are contained in the Fiduciary Security Certificate as
referred to in Article 14 paragraph (2), Fiduciary Obligees must submit a registration application for the
said amendments to the Fiduciary Registration Office.
(2) The Fiduciary Registration Office, on the same date as the date of receipt of the amendment application,
shall register the said amendments in the Fiduciary Register and issue a Statement of Amendment which
is an integral part of the Fiduciary Security Certificate.

Article 17
Fiduciary Guarantors are prohibited to re-conduct fiduciary on Assets that become Fiduciary Security objects and
that have been registered.

Article 18
All information on Assets that become Fiduciary Security objects at the Fiduciary Registration Office is open to
the public.

Division Three
Fiduciary Security Transfer

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 Article 19
(1) Transfer of rights over receivables which are secured by fiduciary security results in the transfer due to law
of all rights and obligations of Fiduciary Obligees to new creditors.
(2) The transfer of Fiduciary Security as referred to in paragraph (1) shall be registered by the new creditors
to the Fiduciary Registration Office.

Article 20
Fiduciary Security shall still encumber the Assets that become Fiduciary Security objects in the hands of
whoever the said Assets are, except for the transfer of inventory assets that become Fiduciary Security objects.

Article 21
(1) Fiduciary Guarantors may transfer the inventory assets that become Fiduciary Security objects through
methods and procedures which are commonly performed in trading business.
(2) The provision as referred to in paragraph (1) does not apply if there are defaults by debtors and to third
parties Fiduciary Guarantors.
(3) Assets that become Fiduciary Security objects that have been transferred as referred to in paragraph (1)
must be replaced by Fiduciary Guarantors with equivalent objects.
(4) In the event that Fiduciary Guarantors are in defaults, then proceeds of the transfer and/or invoices which
are incurred due to the transfer as referred to in paragraph (1) shall due to law become the substitute
Fiduciary Security objects of the transferred Fiduciary Security objects.

Article 22
Buyers of assets that become Fiduciary Security objects that are inventory assets shall be released from any
future claims whatsoever, even though the said buyers are aware of such Fiduciary Security, on condition that
the buyers have paid off the sale price of said Assets according to the market price.

Article 23
(1) Without prejudice to the provisions as referred to in Article 21, if Fiduciary Obligees approve that Fiduciary
Guarantors may use, merge, mix or transfer Assets or proceeds from Assets that become Fiduciary
Security objects, or approve to collect or compromise receivables, then said approvals do not mean that
Fiduciary Obligees waive Fiduciary Security.
(2) Fiduciary Guarantors are prohibited from transferring, pledging or renting to other parties Assets that
become Fiduciary Security objects that are not inventory assets, except preceded by a written approval
from Fiduciary Obligees.

Article 24
Fiduciary Obligees do not bear any responsibility for the consequences of acts or negligence of Fiduciary
Security that are resulted from either contractual relationships or unlawful acts in relation to the use and transfer
of Assets that become Fiduciary Security objects.

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 Division Four
Fiduciary Security Removal

Article 25
(1) Fiduciary shall be removed due to the following matters:
a. removal of debts which are secured by fiduciary security;
b. waiver of Fiduciary Security rights by Fiduciary Obligees; or
c. destruction of Assets that become Fiduciary Security objects.
(2) The destruction of Assets that become Fiduciary Security objects does not remove the insurance claim as
referred to in Article 10 letter b.
(3) Fiduciary Obligees shall notify the Fiduciary Registration Office regarding the removal of Fiduciary
Security as referred to in paragraph (1) by enclosing a statement on the removal of debts, waiver of rights
or destruction of Assets that become the Fiduciary Security objects.

Article 26
(1) By the Fiduciary Security removal as referred to in article 25, the Fiduciary Registration Office shall
exclude the Fiduciary Security registration from the Fiduciary Register.
(2) The Fiduciary Registration Office shall issue a certificate which declares that the relevant Fiduciary
Security Certificate is no longer valid.

CHAPTER IV
PRIORITY RIGHTS

Article 27
(1) Fiduciary Obligees have priority rights over other creditors.
(2) The priority rights as referred to in paragraph (1) are the rights of Fiduciary Obligees to take the settlement
of their receivables upon the execution proceeds of Assets that become Fiduciary Security objects.
(3) The priority rights of Fiduciary Obligees shall not be removed due to bankruptcy and/or liquidation of
Fiduciary Guarantors.

Article 28
If the same Assets become the Fiduciary Security objects for more than 1 (one) Fiduciary Security agreement,
then the priority rights as referred to in Article 27, shall be granted to the party who first register them at the
Fiduciary Registration Office.

CHAPTER V

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 FIDUCIARY SECURITY EXECUTION

Article 29
(1) If debtors or Fiduciary Guarantors are in defaults, the execution of Assets that become Fiduciary Security
objects may be carried out by way of:
a. implementation of executorial title as referred to in Article 15 paragraph (2) by Fiduciary Obligees.
b. sales of Assets that become the Fiduciary Security objects on the authority of Fiduciary Obligees
themselves through public auctions as well as the settlement of their receivables from the proceeds
of the sales;
c. private sales which are conducted based on agreements between Fiduciary Guarantors and
Obligees if through this way the highest price which is profitable for the parties can be obtained.
(2) The implementation of the sales as referred to in paragraph (1) letter c shall be conducted after exceeding
1 (one) month from the written notifications by Fiduciary Guarantors and/or Obligees to interested parties
and the announcement in at least 2 (two) newspapers which are circulated in the relevant regions.

Article 30
Fiduciary Guarantors are required to hand over Assets that become the Fiduciary Security objects in order to
implement the Fiduciary Security execution.

Article 31
In the event that Assets that become the Fiduciary Security objects consist of trading goods or security which
may be sold in markets or on the exchange, the sales may be conducted in the said places in accordance with
the prevailing laws and regulations.

Article 32
Any promises to conduct the execution of Assets that become the Fiduciary Security objects in a way that is
contrary to the provisions as referred to in article 29 and Article 31, are null and void by law.

Article 33
Any promises that provide authority to Fiduciary Guarantors to own Assets that become the Fiduciary Security
objects if debtors are in default, are null and void by law.

Article 34
(1) In the event that execution proceeds exceed the value of security, Fiduciary Obligees are required to
return the excess to Fiduciary Guarantors.
(2) If execution proceeds are insufficient for the settlement of debts, debtors shall be still responsible for the
outstanding debts.

CHAPTER VI

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 CRIMINAL PROVISIONS

Article 35
Any individual that intentionally falsifies, changes, removes or by any means provides misleading information,
that if said matters are discovered by one of the parties do not create a Fiduciary Security agreement, shall be
subject to imprisonment for a minimum of 1 (one) year and a maximum of 5 (five) years and a minimum fine of
IDR10,000,000 (ten million rupiahs) and a maximum fine of IDR100,000,000 (one hundred million rupiahs).

Article 36
Fiduciary Guarantors that transfer, pledge or rent Assets that become the Fiduciary Security objects as referred
to in Article 23 paragraph (2) which are conducted without being preceded by written approvals from Fiduciary
Obligees shall be subject to imprisonment for a maximum of 2 (two) years and a maximum fine of
IDR50,000,000 (fifty million rupiahs).

CHAPTER VII
TRANSITIONAL PROVISIONS

Article 37
(1) Existing encumbrance of Assets that become the Fiduciary Security objects prior to the enforcement of
this Law shall remain valid as long as they do not conflict with this Law.
(2) Within a maximum period of 60 (sixty) days from the establishment of the Fiduciary Registration Office, all
Fiduciary Security agreements shall be in accordance with the provisions of this Law, except for the
provision on the obligation to draw up a Fiduciary deed as referred to in Article 5 paragraph (1).
(3) If during the period as referred to in paragraph (2) no adjustment is made, then the Fiduciary Security
agreements are not collateral rights over property as referred to in this Law.

Article 38
As long as they do not conflict with the provisions of this Law, all laws and regulations regarding fiduciary shall
remain valid until they are repealed, replaced or renewed.

CHAPTER VIII
CLOSING PROVISIONS

Article 39
The Fiduciary Registration Office as referred to in Article 12 paragraph (2) shall be established within a
maximum period of 1 (one) year after the promulgation of this Law.

Article 40
This Law is called the Fiduciary Law.

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 Article 41
This Law comes into force from the date of its promulgation.
For public cognizance, it is hereby ordered that this Law be promulgated in the State Gazette of the Republic of
Indonesia.

Enacted in Jakarta,
On 30 September 1999
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,
Signed.
BACHARUDDIN JUSUF HABIBIE

Promulgated In Jakarta,
On 30 September 1999
MINISTER OF STATE SECRETARY OF THE REPUBLIC OF INDONESIA,
Signed.
MULADI

STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 1999 NUMBER 168

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 ELUCIDATION TO LAW OF THE REPUBLIC OF INDONESIA
NUMBER 42 OF 1999
ON
FIDUCIARY SECURITY

I. GENERAL
1. Economic development, as part of national developments, is one of the efforts to achieve a just and
prosperous society based on Pancasila and the 1945 Constitution. In order to maintain and
continue sustainable developments, development actors, both the government and the community,
individuals and legal entities, require large amounts of funds. As development activities increase, so
does the need for funding, of which the majority is obtained through lending.
2. So far, lending activities by using mortgages or security rights have been regulated under Law
Number 4 of 1996 on Mortgages that constitutes the implementation of Article 51 of Law Number 5
of 1960 on the Basic Agrarian Law, and simultaneously as the replacement of Hypothec institutions
for land and credietverband. In addition, other security rights that are recently used are Pledge,
Hypothec for other than land and Fiduciary Security. The Law that relates to Fiduciary Security is
Article 15 of Law Number 4 of 1992 on Housing and Settlements, which specifies that houses built
on land which is owned by other parties may be encumbered with Fiduciary Security. In addition,
Law Number 16 of 1985 on Multi-Story Housings regulates the strata title which can be used as
debt collateral which is encumbered with the fiduciary security, if the land is in the form of right-to-
use land on state-owned land.
Fiduciary Security has been used in Indonesia since the Dutch colonial era as a form of security
which was born out of jurisprudence. This form of security is widely used in lending transactions
because the encumbrance process is considered simple, easy and quick, but it does not guarantee
the legal certainty.
The Fiduciary Security Institution allows Fiduciary Guarantors to possess Assets which are
guaranteed, to conduct business activities which are funded from loans by using Fiduciary Security.
Initially, Assets that became the fiduciary objects were limited to movable assets that are tangible in
the form of equipment. However, in subsequent developments, Assets that become the fiduciary
objects include movable assets that are intangible as well as immovable assets.
3. This Law is intended to accommodate the requirements of the community regarding the
arrangement of Fiduciary Security as a means to assist business activities and to provide legal
certainty to the interested parties.
As already explained, Fiduciary Security provides facilities for the parties that utilize it, especially for
Fiduciary Guarantors. However, on the contrary, because the Fiduciary Security is not registered, it
is not enough to guarantee the interests of parties that receive the fiduciary. Fiduciary Guarantors
may guarantee assets that have been encumbered with fiduciary to other parties without the
awareness of Fiduciary Obligees.
Prior to the establishment of this Law, in general, Assets that became the Fiduciary Security objects
are movable assets that include inventory assets, trading goods, receivables, machinery tools and
motor-vehicles. Therefore, in order to fulfill the ever-increasing requirements of the community,
according to this Law, Fiduciary Security objects are broadly defined as movable assets, both
tangible and intangible, and immovable assets that cannot be encumbered with mortgages as
referred to in the provisions under Law Number 4 of 1996 on Mortgages.
Under this Law, the registration of Fiduciary Security is regulated in order to provide legal certainty

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 to interested parties and the registration of Fiduciary Security provides priority rights to Fiduciary
Obligees over other creditors. Since Fiduciary Security provides the rights to Fiduciary Guarantors
to possess Assets that become the Fiduciary Security objects on the basis of trust, it is hoped that
the registration system which is regulated under this Law can provide security to Fiduciary Obligees
and parties that have interests in the said Assets.

II. ARTICLE BY ARTICLE

Article 1
Self-explanatory.

Article 2
Self-explanatory.

Article 3
Letter a
Based on this provision, buildings on land which is owned by other people that cannot be encumbered
with mortgages based on Law Number 4 of 1996 on Mortgages may be used as the Fiduciary Security
object.
Letter b
Self-explanatory.
Letter c
Self-explanatory.
Letter d
Self-explanatory.

Article 4
“Performance” in this provision is defined as providing something, doing something or not doing something, that
can be assessed with money.

Article 5
Paragraph (1)
In addition to the day and date of the Fiduciary Security deed, the time (hour) of the drawing up of the
deed shall also be included.
Paragraph (2)
Self-explanatory.

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 Article 6
Letter a
“Identities” in this article shall include full name, religion, place of residence or place of domicile, place and
date of birth, sex, marital status and occupation.
Letter b
“Data on principal agreements” is the various types of agreements and debts that are secured by the
fiduciary security.
Letter c
The description of Assets that become the Fiduciary Security objects is sufficient by identifying the Assets
and the ownership certificates shall be explained.
In the event that Assets that become the Fiduciary Security objects are the inventory assets that are
always changing and/or not fixed, such as stocks of raw materials, finished goods or portfolios of security
companies, then the Fiduciary Security deed shall include a description of the types, brands, quality of the
relevant Assets.
Letter d
Self-explanatory.
Letter e
Self-explanatory.

Article 7
Letter a
Self-explanatory.
Letter b
Debts that will arise in the future are known as “contingents”, for example, debts that exist from payments
which are conducted by creditors for the interest of debtors in order to implement bank guarantees.
Letter c
Debts as referred to in this provision are the debt of interests on the principal loan and other costs of
which the amount may be determined later.

Article 8
This provision aims at the granting of fiduciary security to more than one Fiduciary Obligee in the context of
funding consortium credits.
“Proxies” are persons who have obtained special authorization from Fiduciary Obligees to represent their
interests in receiving Fiduciary Security from Fiduciary Guarantors.
“Representatives” are persons who are legally considered to represent Fiduciary Obligees in receiving Fiduciary
Security, for example, Trustees in representing the interest of bond holders.

Article 9

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 The provision under this article is important from a commercial perspective. This provision explicitly allows
Fiduciary Security to include any Assets which will be acquired in the future. This shows that this Law
guarantees flexibility in relation to the matter of Assets that may be encumbered with Fiduciary Security for the
settlement of debts.

Article 10
Letter a
“Any proceeds which derive from Assets that become Fiduciary Security objects” are all things that are
obtained from Assets that are encumbered with Fiduciary Security.
Letter b
The provision under letter b aims at the confirmation that if Assets are insured, then the insurance claim
constitutes the rights of Fiduciary Obligees.

Article 11
The registration of Assets that are encumbered with Fiduciary Security shall be carried out at the domiciles of
Fiduciary Guarantors, and the registration includes assets, both within and outside the territory of the Republic of
Indonesia to fulfill the principle of publicity, as well as a guarantee of certainty to other creditors regarding the
Assets that have been encumbered with Fiduciary Security.

Article 12
The Fiduciary Registration Office is part of the Department of Justice and is not an independent agency or
technical implementing unit.
Fiduciary Registration Offices shall be established for the first time in Jakarta and gradually, in accordance with
the requirements, in capitals of provinces throughout the territory of the Republic of Indonesia.
In the event that the Fiduciary Registration Office has not been established in each Level II Region, the working
area of the Fiduciary Registration Office in capitals of provinces shall encompass all Level II regions within their
regions.
The establishment of Fiduciary Registration Offices in Level II regions may be adjusted to Law Number 22 of
1999 on Regional Governments.

Article 13
Paragraph (1)
Self-explanatory.
Paragraph (2)
Self-explanatory.
Paragraph (3)
This provision is intended so that the Fiduciary Registration Office does not conduct an assessment of the
correctness which is included in the statement of Fiduciary security Registration, but only checks the data
as referred to in Article 13 paragraph (2).
Paragraph (4)

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 Self-explanatory.

Article 14
Paragraph (1)
Self-explanatory.
Paragraph (2)
Self-explanatory.
Paragraph (3)
This provision does not diminish the enforcement of Article 613 of the Indonesian Civil Code for the
transfer of registered receivables (piutang atas nama) and other intangible assets.

Article 15
Paragraph (1)
Self-explanatory.
Paragraph (2)
Under this provision, “executorial title” means that it can be directly exercised without going through a
court and is final and binding on the parties in order to implement the said decision.
Paragraph (3)
One of the characteristics of Fiduciary Security is the ease of its execution in the event that Fiduciary
Guarantors are in defaults. Therefore, under this Law, it is deemed necessary to specifically regulate the
execution of Fiduciary Security through the parate executie institution.

Article 16
Paragraph (1)
Any amendment to the matters which are contained in the Fiduciary Security Certificate must be notified to
the parties. These amendments are not required to be made with a notarial deed in the context of the
efficiency to fulfill the requirement of the business sector.
Paragraph (2)
Self-explanatory.

Article 17
Re-conduct of fiduciary by Fiduciary Guarantors, both debtors and third-party guarantors, is not possible for
Assets that become the Fiduciary Security objects because the ownership rights over the said Assets have been
transferred to Fiduciary Obligees.

Article 18
Self-explanatory.

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 Article 19
"Transfer of rights over receivables" in this provision is known as “cessie”, namely the transfer of receivables that
is carried out with an authentic deed or private deed. With this cessie, all rights and obligations of the previous
Fiduciary Obligees shall be transferred to the new Fiduciary Obligees and the transfer of rights over the said
receivable shall be notified to Fiduciary Guarantors.

Article 20
This provision encompasses the "droit de suite" principle that has become a part of Indonesian laws and
regulations in relation to absolute rights over property (in rem).

Article 21
This provision reaffirms that Fiduciary Guarantors may transfer inventory assets that become the Fiduciary
Security objects. However, in order to maintain the interests of Fiduciary Obligees, the Assets which are
transferred must be replaced with equivalent objects.
“Transfer” is, among other things, selling or leasing in relation to business activities.
“Equivalent” is not only the value but also the type.
“Default” is the non-fulfillment of performance, whether based on the principal agreement, Fiduciary Security
agreement or other security agreements.

Article 22
“Market price” is a reasonable price which is prevailing in the market at the time of sales of said Assets, so as not
to suggest any fraud from Fiduciary Guarantors in conducting the sales of said Assets.

Article 23
Paragraph (1)
“Merge” is the unification of the parts of the said Assets.
“Mix” is the unification of equivalent Assets with Assets that become the Fiduciary Security objects.
Paragraph (2)
“Assets that are not inventory assets” are, for example, production machines, private cars or private
houses that become the Fiduciary Security objects.

Article 24
Self-explanatory.

Article 25
Paragraph (1)

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 In accordance with the follow-up of Fiduciary Security, then Fiduciary Security shall depend on receivables
of which settlement is secured. If the receivables are removed due to the debt removal or due to waiver,
then the relevant Fiduciary Security will automatically be removed.
“Removal of debts” is, among other things, due to settlements and proofs of the debt removal in the form
of information which is prepared by creditors.
Paragraph (2)
In the event that Assets that become the Fiduciary Security objects are destructed and the Assets are
insured, then the insurance claim will become the replacement for the said Fiduciary Security objects.
Paragraph (3)
Self-explanatory.

Article 26
Self-explanatory.

Article 27
Paragraph (1)
The priority rights shall be calculated from the date of registration of Assets that become the Fiduciary
Security objects at the Fiduciary Registration Office.
Paragraph (2)
Self-explanatory.
Paragraph (3)
The provision under this paragraph relates to the provision that Fiduciary Security is a collateral right over
property for the settlement of debts. In addition, the provisions under the Law on Bankruptcy determine
that Assets that become the Fiduciary Security objects shall be outside bankruptcy and/or liquidation.

Article 28
Self-explanatory.

Article 29
Self-explanatory.

Article 30
In the event that Fiduciary Guarantors do not hand over Assets that become the Fiduciary Security objects at the
time of execution, Fiduciary Obligees are entitled to take the Assets that become the Fiduciary Security objects
and, if necessary, may request assistance from authorized parties.

Article 31

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 Self-explanatory.

Article 32
Self-explanatory.

Article 33
Self-explanatory.

Article 34
Self-explanatory.

Article 35
Self-explanatory.

Article 36
Self-explanatory.

Article 37
Paragraph (1)
Self-explanatory.
Paragraph (2)
Self-explanatory.
Paragraph (3)
Based on the provision under this paragraph, any Fiduciary Security agreements that are not registered
will not have any priority rights (preference) either in or outside bankruptcy and/or liquidation.

Article 38
Self-explanatory.

Article 39
Self-explanatory.

Article 40
Self-explanatory.

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ATAMA 01 | DIUNDUH PADA 17 MARET 2024