Authors : Anis Mashdurohatun, Bambang Suprabowo and Eman Suparman
Abstract: The bank is a financial intermediary institution which functions to channel capital to the public through credit agreements with collateral assets that can be moved and cannot be transferred. Nationally, the loss of Bank Mandiri was caused by bad loans amounted to 3.5 trillion and in the Central Java Region, bad loans were at 430 billion. The purpose of this research is to examine and to analyze the legal protection for creditors in granting of business loans with objects of collateral based on the value of justice. The method used in this study was juridical empirical by using primary and secondary data. The data analysis method used qualitative descriptive. The findings in this study were legal protection for creditors in the provision of business loans with inventory objects assurance burdened by fiduciary were not based on the value of justice because many debtors were default. By basing on the credit agreement between creditors and debtors, if the debtor defaults, the guarantee inventory object of the debtor will be auctioned to pay off the debt. The reality is that the collateral object is corrupted. Nationally, Bank Mandiri’s losses amounted to 1.5 trillion while in Central Java, the amount was 150 billion due to the default debtors. Legal protections in preventive and repressive manners for creditors are needed. Preventively, the additional guarantees and preventive arrangements need to be made for strict criminal sanctions for debtors who do not replace objects for collateral inventory in accordance with their values and quality and risk transfer to the third parties.
Anis Mashdurohatun, Bambang Suprabowo and Eman Suparman, 2019. Legal Protection for Creditors in Providing Business Credit with Object of Inventory Warranties Based on Justice Values. Journal of Engineering and Applied Sciences, 14: 4176-4182.