The views expressed in this presentation are the views

of the author and do not necessarily reflect the views or

policies of the Asian Development Bank Institute
(ADBI), the Asian Development Bank (ADB), its Board
of Directors, or the governments they represent. ADBI
does not guarantee the accuracy of the data included in
this paper and accepts no responsibility for any
consequences of their use. Terminology used may not
necessarily be consistent with ADB official terms.

OPTIMIZING ACCESS TO FINANCE IN

INDONESIA THROUGH IMPROVEMENT OF
THE MOVABLE COLLATERAL FRAMEWORK &
REGISTRATION SYSTEM

Presented in:
Financing SMEs: Sharing Ideas for Effective Policies Capacity Building and Training
Workshop, Jakarta, 15 October 2014

About this Presentation

Modernization of the Movable Collateral

(Fiducia) Framework and Registry in
Indonesia
Reform Results
What Lies Ahead
1

The Need to Improve MSMEs Access to

Finance
DEMAND SUPPLY GAP
(IDR TRILLION)

Source: IFCs Market Study on Movable Asset-based Financing to SMEs in Indonesia, January 2014

Legal Framework Supporting Movable

Collateral Registration in Indonesia
Law 42 of 1999 on
Fiducia Security

Encumbrance must be set forth in a notarial deed

Only one security may be registered over a particular item at any
time.
Registration grants the fiduciary recipient priority rights
Registration certificate is issued on the day of receipt of application

Government
Regulation
Number 86/2000

Regulates fiducia registration procedure and cost of deed

Registry reviews completeness of the application
Sets maximum cost for deed of fiducia security
Registration fee stipulated by ministry

Presidential
Decree Number
139/2000

Establish Regional Registry nationwide

Delegates authority to issue registration
certificate to Regional Registry

Objects of Fiducia Registration

Law No. 42 of 1999 on Fiducia Security:
movable assets, whether tangible or intangible
immovable goods that are not subject to
- Security Rights (Hak Tanggungan)
- hypothecs on ships with gross tonnage of 20 M3 or more
- hypothecs on aircraft
- pledges
Accounts receivable
Inventory
Equipment and machinery
Crops and fertilizers
Commodities
Livestock
Negotiable instruments, etc.

Pre-Reform: Manual Process for

Registration (Standard Practice)
In operation since year
2000
Manual and decentralized
process through 30 Fiducia
registration Office (regional
level) & 157 Satellite Offices
nationwide
No centralized database &
difficult to access
Cost relatively high
Not attractive to businesses
contributing to low level of
compliance

Evolution of the Fiducia Registry

2001-2011
Business as usual operationalization of Fiducia
Registry low compliance level
International Best Practice (Chengdu, Beijing)

2000
Enactment of
the Fiducia
Law (Law No.
42/1999)
Establishment
of the first
Fiducia
Registry at the
Ministry level

1999

Enactment of the
Government
Regulation 86/2000
Enactment of
Presidential
Regulation139/2000
Establishment of the
Provincial Fiducia
Registry

2013
Minister of
Finance Decree
130/2012
(mandatory
registration for
multi finances)
Ministrys
Working Group
for Fiducia
Reform

2012

Intl Best Practice

(Australia, Canada,
New Zealand)
Fiducia Online v. 1
Launched
Supporting
Ministerial Regs
Some digitization
initiatives at Regional
Registries

Fiducia Online v.
2 Launched
Plan for
Database
Digitization
Drafting of the
amendment to
Government
Regulation
86/2000

2014

Fiducia Online: Paperless Registration

Fiducia Online: Paperless Registration

Registration Certificate: 7 Minutes

Scan barcode for

authentication
purpose
9

Centralized Database Search Function

10

Results So Far
Registration is consistently high
Fiducia Registration
March 2013-September 2014
average 655,826 /month | max 966,883 application/month
1,000,000

750,000

500,000

250,000

Clear and transparent data available on real time basis

11

Results So Far
Wide Range of Objects

Farms
Equipment
0.00%
Vehicle Others
0.63%

Stock
0.00%
Heavy
Equipments
0.02%

Cattle
0.00%

Other Assets
0.04%

Obligation
0.00%

Company Assets
0.13%
Others
0.18%

Vehicle 4W
19.94%

Vehicle 2W
Vehicle 4W
Vehicle Others
Farms Equipment
Heavy Equipments
Stock
Obligation
Other Assets
Cattle
Company Assets
Others

4.901.852
1.236.643
39.109
80
1.464
10
32
2.552
59
7.960
11.145

Vehicle 2W
79.05%

12

Improved Performance & Value Add

Significantly improved Service Quality

(awarded as one of Top 9 National Public Service Innovation 2014)
Potential to provide better Access to finance by
Enable Creditor to have better information about priorities prior
making decision
Improve Legal Certainty in creditors priorities
13

Reform Continues..

Public
Outreach
Payment Gateway
Mechanism

Enhancement
to Fiducia
Online &
Finalize
Transition

Legal
Framework
Improvement

14

THANK YOU
http://ditjenahu.kemenkumham.go.id