PUBLIC ACCOUNTABILITY IN THE MANAGEMENT OF NON-PERFORMING LOANS IN INDONESIA
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https://orcid.org/0000-0002-4061-319X
Dr. Nurjannah Nonci, M.Si.
https://orcid.org/0000-0003-0915-9475
Dr. Andi Nilwana, SE., M.Si.
Muhammad Alif Adimulia Putra
Abstract
The purpose of this study is to examine administrative and legal obstacles in the management of non-performing loans (NPLs) in Indonesian public financial institutions, especially People’s Credit Bank (BPR). Applying a case study method to 30 court decisions related to NPLs, this study identifies key obstacles such as slow collateral verification, complex litigation procedures, and a lack of coordination between institutions. The results show that these obstacles significantly slow down the recovery of NPLs and reduce the efficiency of financial institutions. Regulations such as PERMA No. 2/2015 and PERMA No. 4/2019 have not been fully effective in overcoming this problem. Therefore, it is necessary to simplify litigation procedures, increase collateral verification, and integrate information systems between institutions. The novelty of this research lies in its in-depth analysis of administrative and legal obstacles in the management of NPLs, as well as its provision of concrete policy reform proposals to improve the stability of the public financial sector.
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