TY  - JOUR
T1  - Legal Protection for Creditors in Providing Business Credit with Object of
Inventory Warranties Based on Justice Values
AU - Mashdurohatun, Anis AU - Suprabowo, Bambang AU - Suparman, Eman 
JO  - Journal of Engineering and Applied Sciences
VL  - 14
IS  - 12
SP  - 4176
EP  - 4182
PY  - 2019
DA  - 2001/08/19
SN  - 1816-949x
DO  - jeasci.2019.4176.4182
UR  - https://makhillpublications.co/view-article.php?doi=jeasci.2019.4176.4182
KW  - Creditors protection inventory guarantee
KW  -justice
KW  -legal protection
KW  -qualitative descriptive
KW  -CentralJava
KW  -strict criminal
AB  - The bank is a financial intermediary institution which functions to channel capital to the public
through credit agreements with collateral assets that can be moved and cannot be transferred. Nationally, the
loss of Bank Mandiri was caused by bad loans amounted to 3.5 trillion and in the Central Java Region, bad
loans were at 430 billion. The purpose of this research is to examine and to analyze the legal protection for
creditors in granting of business loans with objects of collateral based on the value of justice. The method used
in this study was juridical empirical by using primary and secondary data. The data analysis method used
qualitative descriptive. The findings in this study were legal protection for creditors in the provision of
business loans with inventory objects assurance burdened by fiduciary were not based on the value of justice
because many debtors were default. By basing on the credit agreement between creditors and debtors, if the
debtor defaults, the guarantee inventory object of the debtor will be auctioned to pay off the debt. The reality
is that the collateral object is corrupted. Nationally, Bank Mandiri’s losses amounted to 1.5 trillion while in
Central Java, the amount was 150 billion due to the default debtors. Legal protections in preventive and
repressive manners for creditors are needed. Preventively, the additional guarantees and preventive
arrangements need to be made for strict criminal sanctions for debtors who do not replace objects for collateral
inventory in accordance with their values and quality and risk transfer to the third parties.
ER  -