Dillemas of Bad Loan Settlement of Village Credit Institution (Lembaga Perkreditan Desa) in The Covid-19 Pandemic Situation

I Nyoman Sujana, Leonito Ribeiro

Abstract


This paper analyzes the dilemma of resolving bad loans of the Village Credit Institution (LPD) in the Covid19 Pandemic Era. The focus of the study is the problems faced by the Village Credit Institution (LPD) in resolving bad loans in Bali Province during the COVID-19 pandemic era. This study was conducted because LPDs in Bali experienced difficulties in securing credit even though the collaterals or guarantees were imposed with a mortgage as well as a Fiduciary during the Covid 19 period. As an analytical device on the legal issues studied, the author applied the theory of the welfare state with a statutory approach, a conceptual approach, a sociological approach, and a case approach. Based on the results of the study, it is found that the settlement of bad loans at the LPD is in a dilemma. “Internally“ the LPD noticed that the debtors, members of the traditional village, are taking refuge behind the Covid-19 pandemic situation, and denied their obligations. In the collateral cases, even though Mortgage Rights have been imposed with a fiduciary, settlement is about to be carried out, it turns out to be controlled by a third party who is a member of the Customary Village to execute loan settlement through the expropriation of the collateral by execution parate. This type of action is not allowed based on the principles of Balinese customary law paras, parosegilikseguluk, sarpanayasabayantaka. In this case, the LPD should go back to court. Meanwhile, “externally” the economic atmosphere affected by the Covid-19 pandemic has not yet recovered. Therefore, LPD faces a difficult choice between settling bad loans to recover the cash flow of a company, and taking measures to save credit by rescheduling, restructuring, and reconditioning. This rescue measure has become a heavy burden for LPDs to fulfill their obligations to credit customers.


Keywords


Dilemma; Settlement; Bad Loan; LPD;

Full Text:

PDF

References


Books

Anton Suyatno, HRM, (2016), Legal Certainty in the Settlement of Bad Loans Through the Execution of Mortgage Guarantees Without Court Lawsuit Process,Prenadamedia Group,Jakarta

Andi Nursyahriana, Michael Hadjat, Irsan Tricahyadinata, Analisis Faktor Penyebab Terjadinya Kredit Macet, FORUM EKONOMI , Volume 19, No. 1 2017

Chidir Ali, (1987), Legal Entity, Alumni, BandungH. Zainal Asikin, (2016), Introduction to Indonesian Banking Law, PT. Raja Grafindo Persada, Jakarta;

H.Moch.Isnaeni, (2016), Law of Material Guarantee, Existence, Function and Regulation, Laksbang Pressindo, Yogyakarta;

Herowati Poesoko, (2007), Parate Executie to the Object of Mortgage (Inconsistency, Conflict of Norms and Misguided Reasoning in UUHT), LaksbangPressindo, Yogyakarata;

Irwansyah, (2021), Choice of Legal Research Methods & Practice of Article Writing, Revised Edition, 4th Edition, Mirra Buana Media, Yogyakarta;

Jimmy Yoses Sembiring,2011, How to Settle Disputes Out of Court, Trans Media Pustaka, Jakarta;

M. Aqim Adlan, Penyelesaian Kredit Macet Perbankan dalam Pandangan Islam Tinjauan Regulasi Kasus Kredit Macet Akibat Bencana Alam, AN-NISBAH, Vol. 02, No. 02, April 2016

Muhammad Djumhana, 2012, Banking laws in Indonesia. Citra Aditya, Bandung;

Nurjaya, I Nyoman, 2022, “Criminalization of LPD in Bali for Corruption Crimes?”, General Lecture Material for Law Study Program Postgraduate Doctoral Program of Warmadewa University, Tuesday May 24, 2022;

Sudikno Mertokusumo, 2017, Indonesian Civil Procedural Law, Cahaya Atma Pustaka, Revised Edition 5th Edition,Yogyakarta;

Sukandia, I Nyoman, 2019, Balinese Traditional Law Community-Based Village Credit Institutions, CV. Nuswantara, Malang, East Java, First Edition;

Susilawatty, Hj., 2013, Arbitration and Alternative Dispute Resolution Seen from the Perspective of Laws and Regulations, Grama Publishing, Bekasi;

Regulation

Law Number 10 of 1998 concerning amendments to Law Number 7 of 1992 concerning Banking;

Law Number 4 of 1996 concerning Mortgage Rights on Land and Objects Related to Land; State Gazette of the Republic of Indonesia of 1996 Number 42

Law Number 42 of 1999 concerning Fiduciary Guarantees; State Gazette of the Republic of Indonesia of 1999 Number 168

Regional Regulation Number 4 of 2019 concerning Traditional Villages in Bali; Regional Gazette of the Province of Bali Year 2019 Number 4.

Indonesian Code of Civil Law




DOI: http://dx.doi.org/10.29303/ius.v10i2.1104

Refbacks

  • There are currently no refbacks.




Copyright (c) 2022 I Nyoman Sujana, Leonito Ribeiro

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Web
Analytics Jurnal IUS statcounter

https://ix0.org/toc/2477-815X

View full indexing services.