Cessie: Legal Perspectives on Receivables Assignment in Indonesia

The assignment of receivables, or "cessie," plays a significant role in financial and legal transactions in Indonesia. However, for a cessie to be legally binding, it must meet certain formalities, including proper notification to the debtor.

What is Cessie?
Cessie is a legal process where the original creditor (cedent) transfers their right to collect a receivable to a new creditor (cessionary). For this transfer to have legal force over the debtor (cessus), it must be made in writing—either through an authentic deed or a private agreement—and formally notified to the debtor.

Key Parties in a Cessie Transaction
1. Cedent: The original creditor who transfers the receivable.
2. Cessionary: The new creditor who receives the receivable.
3. Cessus: The debtor, who must be informed about the transfer.

According to Article 613 Paragraph (2) of the Indonesian Civil Code (KUHPerdata):
"The transfer of a named receivable has no effect on the debtor unless the transfer has been notified to them or is acknowledged and agreed to in writing."

Validity Requirements for Cessie
To ensure legal validity, a cessie must meet the following criteria:
1. Executed in writing, either as an authentic deed or private agreement.
2. Notified to the debtor, or the debtor must acknowledge and agree in writing.
3. Verbal cessie is invalid and holds no legal force.
4. If no notification is made, the debtor may legally continue to pay the original creditor.

Case Study: Legal Rulings on Cessie Without Notification
Case Overview
 Creditor: PT. Bank Danamon Indonesia Tbk (Branch: Kuningan)
 Cessionary: Henry Kosasi
 Debtor: PT. Yamika Arbis

The bank assigned its receivables to Henry Kosasi without notifying PT. Yamika Arbis.

Court Decisions
A. District Court (No. 370/Pdt.G/2014/PN.Mdn)
 The court found no evidence of notification to the debtor.
 The cessie was declared non-binding and invalid.
 The transfer was considered an unlawful act (Perbuatan Melawan Hukum/PMH).

B. Appeals Court (No. 54/Pdt/2017/PT.Mdn)
 The judge overturned the first-level court decision and accepted the defendant’s objection.

C. Supreme Court (No. 2152 K/Pdt/2018)
 The cassation by PT. Yamika Arbis was rejected.
 However, the Supreme Court reaffirmed that a cessie without debtor notification has no legal force.

Key Legal Takeaways
 Debtor notification is mandatory for a valid cessie.
 Receivable assignments without notification are legally ineffective.
 In the absence of notice, the debtor may continue paying the original creditor.

Legal Protections for Debtors in Cessie Transactions
Debtor Rights:
1. The debtor has the right to be formally notified of any receivable assignment.
2. Without such notification, the debtor can:
a) Continue paying the original creditor.
b) Challenge the validity of the assignment in court.
c) Request official proof of the cessie from the new creditor.

Ensuring a Valid and Enforceable Cessie
1. The receivable transfer must be documented through a written agreement.
2. The new creditor must notify the debtor in writing.
3. For assignments involving security interests, registration is required.
4. Authentic evidence must be available in case of dispute.

Conclusion: Legal Implications of Cessie
A cessie is only valid under Indonesian law if:
 It is made in writing.
 It is formally notified to the debtor.

Failure to meet these requirements means:
 The debtor may legally ignore the new creditor.
 The debtor may continue payments to the original creditor.
 The debtor may file a PMH (unlawful act) lawsuit against both the original and new creditors.

Final Note on Debtor Protection
Debtors hold strong legal protections in cessie cases. Without official notification:
 They are not obligated to acknowledge the new creditor.
 They may demand documentation to validate any claims.
 They have the right to resist payment until proper legal steps are followed.