The virtual property as collateral for a loan: A comparison between Indonesia and United States

Ulani Yunus, Abdul Salam, Raissa Richka Jonah

Research output: Contribution to journalArticlepeer-review


The Virtual property meets a set of criteria for it to be considered an object of property under property law which are rivalrousness, persistence, interconnectivity, valuable, available, and defendable from interference by the other parties. As the meaning of property is extended to include the virtual property, it should be treated with the same legal status as real-world property. Therefore, it is reasonable that the virtual property as an object of property can be used as collateral for a loan because it does not only give the rights to peaceful enjoyment but also provides security interest. Under Article 9 Uniform Commercial Code, eSnowshoes, a United States-based company, uses its domain name and storefront in a virtual world called Second Life to secure financing. By comparing Indonesian legal framework to the United States legal framework for the virtual property and security law, this article discusses the possibility for the virtual property to be used as collateral for a loan in Indonesian legal system. In this digital era, granting users property rights on the virtual property will promote economic growth. However, some developers are still enforcing Terms of Service and End-User License Agreement that restrict users from owning virtual property they have made in the virtual world. The clarity of the ownership of the virtual property is needed as only eligible subjects capable to use their property as collateral for a loan. Also, it must be clear what type of property that the virtual property belongs to. While the United States enacts Article 9 Uniform Commercial Code for personal property and fixture, the Indonesian legal system recognizes pledge and fiduciary as a security interest for the movable property. Acknowledging the virtual property as the movable intangible property is the most practical way to do for it to be able to be used as collateral for a loan under Law No. 42 of 1999 on Fiduciary because the perfection for it does not need to meet inbezitstelling principle. However, the usage of the virtual property as collateral for a loan is needed to be discussed further by the economic and financing experts on how to assess its value. The method used in this research is descriptive analysis, carried out through expert interviews, regulation, literature studies and normative juridical.

Original languageEnglish
Pages (from-to)1981-1992
Number of pages12
JournalJournal of Theoretical and Applied Information Technology
Issue number12
Publication statusPublished - 30 Jun 2020


  • Collateral for a Loan
  • Indonesia
  • United States
  • Virtual Property


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