Proceedings of International Conference of Social Science, ICOSS 2018, Denpasar, Indonesia

Research Article

Implementation of Credit Restructuring Provisions for Debtors of Non-Performing Loans in Bank Credits

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  • @INPROCEEDINGS{10.4108/eai.21-9-2018.2281136,
        author={I Dewa Gede Indra Eka Putra and I Nyoman Putu Budiartha and I Nyoman Sujana},
        title={Implementation of Credit Restructuring Provisions for Debtors of Non-Performing Loans in Bank Credits},
        proceedings={Proceedings of International Conference of Social Science, ICOSS 2018, Denpasar, Indonesia},
        publisher={EAI},
        proceedings_a={ICOSS},
        year={2019},
        month={1},
        keywords={credit bank credit restructuring non-performing loans},
        doi={10.4108/eai.21-9-2018.2281136}
    }
    
  • I Dewa Gede Indra Eka Putra
    I Nyoman Putu Budiartha
    I Nyoman Sujana
    Year: 2019
    Implementation of Credit Restructuring Provisions for Debtors of Non-Performing Loans in Bank Credits
    ICOSS
    EAI
    DOI: 10.4108/eai.21-9-2018.2281136
I Dewa Gede Indra Eka Putra1,*, I Nyoman Putu Budiartha1, I Nyoman Sujana1
  • 1: Universitas Warmadewa
*Contact email: Indra_putra@gmail.com

Abstract

Indonesia government’s effort made to overcome the high increase of non-performing loan is issuing policy in the form of Bank Indonesia Regulation No. 2/15/PBI/2000 concerning Credit Restructuring in the form of a reduction in loan interest rates, extension of credit period, reduction of interest credit arrears, reduction of loan principal arrears, addition of credit facilities, and conversion of credit to temporary capital participation. Empirically, barriers to implementing this strategy still occur: obstacles in the process, obstacles to implementation, and obstacles to legal factors. With an Indonesian legal perspective approach, the study examines the application of strategies to find alternative solutions by applying empirical legal research methods. The results show that deviations in applying credit restructuring provisions are the leading factors that hinder their success, aside from amendments to the provisions that occur. Amendments must be reduced and prospective debtors should gain an in-depth understanding of the system in credit