RECONSTRUCTION OF EQUITABLE FIDUCIARY SECURITY

Abstract This research is motivated by the condition that in Various cases that have occurred show that fiduciary execution is often carried out in inhumane ways and is contrary to the principles of justice. This study aims to answer questions regarding the nature of Fiduciary guarantees, the implementation of Fiduciary guarantees before and after the Constitutional Court decision No. 18/PUU-XVII/2019, and the reconstruction of fair Fiduciary guarantee law.This research is a normative-empirical legal research using a statutory approach, normative approach, conceptual approach, historical approach, comparative approach, sociological approach and philosophical approach. The results of the study indicate that, The essence of fiduciary guarantees in the Indonesian legal system is a form of material guarantee based on the principle of trust, where the fiduciary giver remains in physical control of the collateral object, while the ownership rights are legally transferred to the fiduciary recipient. The implementation of the execution of fiduciary guarantees before the Constitutional Court Decision No. 18 / PUU-XVII / 2019 took place unilaterally by the creditor through the parate execution mechanism based on Article 15 of Law No. 42 of 1999, the Constitutional Court Decision corrected this practice and required an agreement on default and voluntary surrender, or an application to the court, as a valid condition for the execution. A just model of reconstruction of fiduciary guarantee law must be built by balancing legal protection for debtors and creditors. The recommendations include: The government and law-making bodies need to strengthen the conceptual understanding that fiduciary guarantees are trust-based material guarantees. The government needs to formally revise Law No. 42 of 1999 to align with the Constitutional Court's ruling. Academics, practitioners, and policymakers need to use Constitutional Court Decision No. 18/PUU-XVII/2019 as a starting point for building a guarantee system that is more humane, just, and aligned with constitutional values.