LEGAL POSITION OF FIDUCIARY DEEDS IN A MURABAHA CONTRACT FOLLOWING THE INDONESIAN CONSTITUTIONAL COURT DECISION NUMBER 18/PUU-XVII/2019 ON DEFAULT AGREEMENT BY CREDITORS AND DEBTORS

Abstract

This normative research aims at analyzing the legal position of fiduciary deeds in murabaha contract following the decision of Indonesian Constitutional Court No. 18/PUU-XVII/2019 on default agreement between creditors and debtors. The study applied conceptual and statute approaches. The results reveal that the fiduciary deed position after the mentioned decision is about the existing agreement carried out as it should. While for the fiduciary deed implemented after the decision exists, there must be a default agreement as a form of the decision’s implementation and anticipation if in the future the debtor does not voluntarily turn in the fiduciary object. Efforts to draw up an agreement on the clause of default in a fiduciary deed with murabaha financing in Islamic banking is part of preventive legal protection. Legal protection is an effort made by law enforcement to protect the rights of legal subjects. Default may not be declared unilaterally by the creditor. Execution of court decisions that have legal force must still be carried out, if at the beginning, there is no agreement regarding a breach of contract and when there is a default but the debtor refused to voluntarily submit the collateral.