Legal Domicile For Ensuring The Execution Of Aircraft Fiduciary Security Case Study Of Decision Number 142/Pdt.P/2019/Pn.Tim

Abstract

The acquisition of aircraft as a component of national transportation infrastructure requires substantial investment and typically involves financing from banking and non-bank financial institutions. This condition necessitates legal certainty regarding security interests that may be imposed on aircraft. Although Law Number 1 of 2009 on Aviation does not explicitly stipulate the type of security right applicable to aircraft, Article 71 recognizes the possibility of creating an international interest arising from security agreements, title reservation arrangements, or leasing agreements governed by the Cape Town Convention. This study employs a normative juridical method to examine the legal framework governing aircraft as objects of security and to assess the effectiveness of the Irrevocable Deregistration and Export Request Authorization (IDERA) in safeguarding creditors’ interests. The findings show that aircraft fulfill the characteristics of immovable property for security purposes and are therefore most appropriately encumbered through a hypothec. Moreover, IDERA provides protection to creditors by granting authority to deregister and export the aircraft in the event of debtor default. However, implementation challenges arise when contracting parties choose foreign governing law or international arbitration tribunals, limiting the jurisdiction of Indonesian courts to grant interim measures, as reflected in several court decisions. Accordingly, the choice of law and forum in international aircraft financing contracts plays a decisive role in ensuring the enforceability of security interests and the effectiveness of aircraft repossession within Indonesian territory.