| dc.description.abstract | The misuse of working capital credit funds by MSME entrepreneurs threatens the effectiveness of financing and the stability of the financial system. This research examines the role of BPR in MSME financing, the legal responsibilities of debtors, and the legal settlement mechanisms for credit fund misuse at BPR Nusantara Bona Pasogit 20. The research method uses a normative-empirical legal approach with primary data from observations and interviews at BPR NBP 20, as well as secondary data from laws and regulations and legal literature. Data analysis was conducted using descriptive-analytical qualitative methods.
The research results show that BPR functions strategically as an intermediary institution that provides micro-credit for MSMEs, with the obligation to distribute a minimum of 50% of paid-up capital for working capital credit based on Law No. 10/1998 and POJK No. 7 of 2024. The legal responsibility of debtors is based on the principle of good faith (Article 1338 paragraph 3 of the Civil Code) which includes the obligation to use credit according to its purpose, provide accurate information, and make timely payments. The misuse of funds (side streaming) constitutes a breach of contract with consequences including accelerated repayment, execution of collateral, and criminal sanctions (Article 378 of the Criminal Code and Article 49 paragraph 2 of the Banking Law). BPR NBP 20 implements a prevention system through strict monitoring and tiered warnings (SP-1 to SP-3). Legal settlement is pursued through non-litigation channels (deliberation, restructuring, OJK/LAPS mediation) which are prioritized, or litigation channels with breach of contract lawsuits and criminal sanctions.
The research concludes that the settlement of credit fund misuse requires a preventive approach through strengthening monitoring with an early warning system, interest rate evaluation, caution in accepting collateral, and improving financial literacy, as well as a repressive approach through prioritizing non-litigation settlement and information transparency to create a sustainable MSME financing ecosystem. Keywords: Credit Fund Misuse, Working Capital Credit, Rural Credit Bank, MSMEs, Legal Settlement, Breach of Contract | en_US |
