Legal Protection of Debtor’s Object Which is Auctioned by Bank in Pekanbaru City According to Indonesia Legal System

Abstract

Economic development is prioritized as part of national development, is one of the efforts to realize the welfare of the people that is just and prosperous based on Pancasila and the 1945 Constitution. In order to maintain the sustainability of the development, the actors include both the government and the community as individuals. and legal entities, there is also an increased need for the availability of funds, which are mostly obtained through credit activities. Credit is one of the important efforts for banks to provide benefits, but various problems with lending must be faced by banks. Credit is the granting of the use of a money or goods to another person at a certain time with a guarantee or without collateral, by providing services or interest or without interest. According to Law Number 10 of 1998, the term credit is a provision of money or bills that can be likened to it, based on a loan agreement between the bank and another party that requires the borrower to repay the debt after a certain period of time with interest. "The term credit comes from the Latin language that is credere which means trust, or credo which means I believe, meaning that the trust of the creditor (granting a loan) that the debtor (loan recipient) will return the loan along with the interest in accordance with the agreement of both parties. Lately, there has been a lot of criticism from the public about the performance of national banking by financial practitioners or government institutions. This is due to the existence of problem loans which are commonly called Non Performing Loans (NPL) with a significant amount in a number of these banks.