Legal Certainty in the Pawn Guarantee System in Indonesia in Anticipation of Opportunities and Challenges of Global Economic Competition

Abstract

The Credit system with guarantee pledge long has its roots in public life in Indonesia based on settings in the KUH Perdata article 1150. Advantages of the credit system with the pawn lies in a simple procedure and based on the principle of inbezet stelling who controlled goods are considered as owner. In the development system pawn shops especially with modern business, trends start in doubt because of suspicions about pawn shops as holding “barang tada” (stolen). This weakness appears due to legal certainty in the pawn guarantee system in Indonesia is related to the responsibility of PT Pegadaian Indonesia, against the pawn shops and the dispute resolution system. It became the focused of the problem in this research by using the methods of normative legal research found that interest in system pawn shops quite high in Indonesia. The fundamental weakness of the system has not been applied to pawn shops customer recognition system it must be addressed in improving public confidence towards the pawn shops to be able to compete with other financial institutions in globalization.

Keywords: pawn, guarantee, legal certainty