Legal Consequence of Fiduciary Object’s Right Transfer Conducted Unofficially

The regulations concerning the transfer of fiduciary guarantee objects are delineated in Law Number 42 of 1999 on Fiduciary Guarantees, Article 21, paragraph (1). The Fiduciary Provider may transfer inventory items subject to the Fiduciary Guarantee according to the customary trade practices outlined in Article 23, paragraph (2). The Fiduciary Provider is forbidden from transferring, pledging, or leasing fiduciary collateral that is not inventory unless prior written consent is obtained from the fiduciary recipient. Nonetheless, the actual circumstances frequently diverge from the established regulations. The study employs the normative juridical research technique. This research aims to analyze and elucidate the legal effects of the agreement about the transfer of rights over fiduciary items executed privately. The research findings indicate that the unauthorized transfer of rights over fiduciary objects by the debtor, without the creditor's consent, constitutes a breach of contract following the Constitutional Court ruling number 18/PUU-XVII/2-2019, affecting the execution of the executorial title.