Legal Certainty for Village Credit Institutions and Indigenous Village Communities on the Management of Village Credit Institutions

DOI

10.2991/978-2-494069-93-0_48How to use a DOI?

Keywords

Village Credit Institution (LPD); debtors; creditor losses

Abstract

Village Credit Institution (referred to as LPD) is one component that plays an important role in efforts to empower Indigenous Village so that the welfare, prosperity, and happiness of all members of the community can be achieved in Indigenous Village. LPD in its development is strongly supported by the layout and mindset of the community. The dense population will provide space for the development and improvement of the LPD, on the other hand, the growth and development of the LPD require Human Resources with sufficient quality education, but the reality is that in the management of the LPD there are still many workers who do not understand governance as a good financial institution., which has an impact on the existence of the Institution and losses for the people who use its services in the financial sector. This study examines legal certainty empirically normative for LPDs as creditors and indigenous peoples as debtors in providing business loans and how to overcome problems that occur due to LPD management which has an impact on losses for LPDs and the community as creditors and debtors. In granting business loans, it often relies on the principle of trust and does not always apply the six principles in lending, namely Character, Capacity, Capital, Collateral, Condition of Economic, and Constraints, which can lead to bad loans, which have the potential to lack legal certainty. For this reason, LPD must consistently and in an orderly manner always apply the six lending principles.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - I Nyoman Sukandia
AU  - Anak Agung Istri Agung
PY  - 2023
DA  - 2023/01/25
TI  - Legal Certainty for Village Credit Institutions and Indigenous Village Communities on the Management of Village Credit Institutions
BT  - Proceedings of the 3rd International Conference on Business Law and Local Wisdom in Tourism (ICBLT 2022)
PB  - Atlantis Press
SP  - 396
EP  - 404
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-93-0_48
DO  - 10.2991/978-2-494069-93-0_48
ID  - Sukandia2023
ER  -