Overlapping fiduciary guarantees and mortgage rights in indonesian digital credit: a comparative legal analysis of integrated collateral registration for legal certainty

Abstract

The digitalisation of the financing sector has transformed lending into electronic systems that prioritise speed, efficiency, and accessibility, while creating new challenges in collateral governance. This study examines the fragmentation of registration systems for fiduciary guarantees and mortgage rights, which may lead to overlapping security interests, limited cross-system verification, and uncertainty about creditors’ positions and priorities. The study aims to analyse the causes of overlapping security interests in digital credit, examine their implications for creditors’ legal certainty, and formulate a model for integrating collateral registration. This normative and prescriptive legal research employs statutory, conceptual, and comparative approaches, with a qualitative analysis comparing Indonesia’s registration system with Australia’s Personal Property Securities Register (PPSR). The findings indicate that separating the AHU and BPN registration systems limits the effectiveness of publicity and priority principles in Grant Gilmore’s framework because of inadequate cross-system verification. This condition also undermines the values of Rechtssicherheit, Gerechtigkeit, and Zweckmäßigkeit identified by Gustav Radbruch. The study proposes an integrated national collateral registration model featuring cross-registration search, data standardisation, debtor and collateral identification, verification protocols, and audit trails. The model adapts PPSR principles while preserving the distinct legal characteristics of Indonesian security rights.