The Faculty of Law at Diponegoro University once again held the Undip Global Classroom (UGC) with Prof. Dr. Hasani Mohd Ali from The National University of Malaysia as the keynote speaker. The event, held on Friday, April 24, 2026, raised the theme “The Evolution of Collateral Law: Balancing Creditor Rights and Corporate Sustainability (SDGs 8 & 9),” with Bunga Jasmine Puji Hapsari, S.H., M.Kn. as the discussant.
In her presentation, Prof. Hasani highlighted that collateral law developed as an instrument to protect creditors’ interests, particularly by ensuring the certainty of debt repayment through collateralized assets. This function makes collateral a crucial element in the modern financing system, particularly in supporting access to credit and economic stability.
However, developments in business practices and increasing attention to sustainability principles require a shift in perspectives on collateral law. No longer solely focused on creditor protection, collateral law is increasingly considered in a broader context, including its impact on corporate sustainability and inclusive economic development.
In this context, there is a need to balance legal certainty for creditors with the latitude debtors need to maintain business continuity. Overly rigid collateral mechanisms can hinder business restructuring, while overly lenient approaches can increase credit risk and transaction uncertainty.
This discussion demonstrates that the evolution of collateral law is inextricably linked to global economic dynamics and the Sustainable Development Goals (SDGs) 8 and 9, which emphasize inclusive economic growth and sustainable industrial development. This session encouraged participants to understand that collateral law no longer functions solely as a financial risk-protection tool but also as an instrument that can support—or hinder—the corporate sustainability agenda. Therefore, a more adaptive approach is needed in designing a collateral legal framework that balances both interests.