Given that translations of English documents into Indonesian are frequently imprecise, foreign investors and bankers should ensure that their lawyers are bilingual in English and Bahasa Indonesia so that the English language documents and the Indonesian fiduciary securities actually say the same thing. A fiduciary security can be created over movable assets, whether tangible or intangible, and such immovable assets as cannot be secured by a mortgage. Previously fiduciary transfers were generally viewed as applying only to tangible movables. In order to benefit from the preferential right conferred under the new law, all fiduciary securities must be registered with the Fiduciary Registration Office, and this applies equally to existing fiduciary transfers. However the detailed registration procedures and forms have yet to be prescribed by the authorities.
Registration is the responsibility of the holder of the security.
Satisfying the Registrar that the fiduciary security is valid should not be an issue. The Law requires that all fiduciary securities be in the form of notarial deed, which means that they will be proven documents. Similarly almost all existing fiduciary transfers are also in notarial form. A fiduciary security, once registered, has an executorial power that is similar to that of a final court judgement. This means that a holder need not obtain a court order to exercise its power to sell the asset that is the subject of a registered fiduciary security.