Usually a combination: fiduciary security (fidusia) over the business’s equipment, stock and receivables; a pledge over the shares of the operating company; and, where the business or its owners hold land, a registered mortgage (Hak Tanggungan) over it. An operator that leases its premises cannot mortgage the land, so the strength of the business, the length of the lease and any other property the owners can offer matter more. Not legal advice.
What can be secured, and under which law?
| Security | Over what | Legal basis |
|---|---|---|
| Fiduciary security (fidusia) | Equipment, furniture, vehicles, stock, receivables | Law 42/1999 |
| Share pledge | The shares of the operating company | Company Law 40/2007, Art. 60 |
| Mortgage (Hak Tanggungan) | Registered land rights — Hak Milik, HGB, HGU, registrable Hak Pakai — and buildings on them | Law 4/1996 |
Fiduciary security must be registered to bind third parties, and a share pledge is recorded in the company’s shareholder register; the articles of association must not prohibit it. Not legal advice.
Why does the lease matter so much?
Because for a leasing operator the lease is the business: the fit-out, the location and the customers all depend on it. A capital provider checks how long the lease has left (it should run well beyond the facility), whether rent is prepaid, whether the landlord can end it early, and whether the lease allows a change of control of the tenant company. Whether a lease can be assigned depends on its terms and the landlord’s consent, so this is worth settling with counsel before signing a new lease.
Can other property strengthen the package?
Yes. Where the owners hold a villa, a plot of land or another business, offering security over it can make an expansion possible that the venue alone could not support. Ascendure looks at the whole package, not only the site being funded. See security over HGB land and a PT PMA.
Does the same apply to hotels?
A hotel that owns its land or holds HGB over it offers the strongest package: a mortgage over the land and buildings, the share pledge, and fiduciary security over furniture, equipment and income. A hotel operated under a lease or a management contract sits closer to a restaurant or gym, and is judged more on its trading.
What happens to the security when the facility is repaid?
It is released. The mortgage and fiduciary registrations are removed and the share pledge is cancelled, so the business is free to use its assets again. No equity is taken at any point — you keep control. See how Ascendure works.
Last reviewed October 2026. General information about the Indonesian market, not legal, tax or financial advice. Take advice from an Indonesian notary and legal counsel on any specific structure.
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