The Process of Transferring Fiduciary Rights to Inventory as Working Capital Credit Guarantee

Abstract

Indonesia’s economic growth, driven by population expansion, increasing societal needs, and technological advancement, has encouraged greater distribution of bank credit, particularly working capital loans secured by collateral to ensure legal certainty for creditors, including fiduciary security over inventory. However, the dynamic and movable nature of inventory creates legal challenges, especially in cases of default when the collateral cannot be located or its value has declined at the time of execution, raising questions about the effectiveness of regulations governing the transfer of fiduciary rights and the availability of legal remedies that protect creditors without undermining debtors’ rights. This study analyzes the process of transferring fiduciary rights over inventory as working capital loan collateral at PT Bank Central Asia Tbk, Main Branch Office of Metro, as well as the legal measures taken when inventory collateral is unavailable at execution. Using a normative and empirical juridical approach supported by primary and secondary data from literature review, observation, and interviews, the study finds that the fiduciary transfer process complies with the prudential principle, internal credit procedures, the Banking Law, and the Fiduciary Security Law. The absence of inventory as fiduciary collateral at execution constitutes a civil law violation and may also give rise to criminal liability, highlighting the importance of strengthened inventory supervision through systematic reporting, physical inspections, and digital monitoring systems.