Research Article
Juridical Review on the Limitation of Banking Credit in the National Mining Sector
@INPROCEEDINGS{10.4108/eai.4-11-2022.2328994, author={Sebastian Hendris Pratama and Siti Mahmudah and Muhyidin Muhyidin}, title={Juridical Review on the Limitation of Banking Credit in the National Mining Sector}, proceedings={Proceedings of the International Conference on Sustainability in Technological, Environmental, Law, Management, Social and Economic Matters, ICOSTELM 2022, 4-5 November 2022, Bandar Lampung, Indonesia}, publisher={EAI}, proceedings_a={ICOSTELM}, year={2023}, month={9}, keywords={credit limitation banking credit national mining}, doi={10.4108/eai.4-11-2022.2328994} }- Sebastian Hendris Pratama
Siti Mahmudah
Muhyidin Muhyidin
Year: 2023
Juridical Review on the Limitation of Banking Credit in the National Mining Sector
ICOSTELM
EAI
DOI: 10.4108/eai.4-11-2022.2328994
Abstract
National development requires banking support as a source of financing for national economic development or as a channel of funds in the form of credit funds. Especially in the mining sector, the required capital is obtained from credit applications submitted to banks. Banking in this case has restrictions on lending, especially in the mining sector because it is assessed that the risks faced by banks will be high. The research methodology is normative legal research with a descriptive research focus. The data collection technique is library research which emphasizes sources of information from legal books, journals, papers and opinions related to the problem under study. Provision of credit by banks must first be analyzed for its feasibility by the bank using the 5C, 5P and 3R analysis. The application of restrictions on lending to investors in the mining sector that has been implemented by the Indonesian government is considered quite effective because it can still increase investment in the mining sector from foreign parties and make a very positive contribution to the state treasury. Foreign investors or foreign investment is indeed very profitable for Indonesia, apart from absorbing local workers and transferring technology.