Can A Debt Go Unpaid?
By Mick Olaf Monintja SH., MH.
Recently, a statement came out from the Coordinating Minister for Political, Legal and Security Affairs of the Republic of Indonesia, explaining that debt from illegal online loans ("pinjol") does not need to be repaid. So how does Indonesian law view this statement?
On civil law
A loan with interest is regulated in Articles 1754 jo. 1765 of the Burgerlijk Wetboek (BW, Indonesian Civil Code), and the law requires the borrower to return it to the lender according to the agreement.
On bankruptcy law
Article 1 letter (c) of Law No. 37 of 2004 explains that debt is an obligation that must be repaid by the recipient of the loan.
On labor law
Article 95 of Law No. 13 of 2003 explains that wages and other labor rights that have not been paid by the employer become debts that must be paid first (preferred creditor).
Conclusion
In a civil manner, all debts must be repaid. Yet if in practice there are methods of collection that are contrary to the law, the collector can be subject to criminal penalties.
References
- Kompas: viral video of Mahfud MD on illegal online loan debts
- Indonesian Civil Code
- Indonesian Law No. 37 of 2004 on Bankruptcy and Suspension of Debt Payment Obligations
- Indonesian Law No. 13 of 2003 on Manpower
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