Work

Revolutionizing Credit Dispute Resolution: Balancing Creditors and Debtors Interests for Greater Efficiency

Year: 2024

Type: article

Abstract: Non-performing loans (NPLs) strain creditor-debtor relationships, jeopardizing economic stability. Traditional dispute resolution methods are costly, time-consuming, and often fail to meet the needs of both parties. This paper introduces a novel, efficiency-based approach to NPL dispute resolution, grounded in economic analysis of law. By optimizing resource allocation, it minimizes transaction costs and resolution time, benefiting both creditors and debtors. Using a qualitative and normative methodology, the study explores the application of efficiency principles in Indonesia. The findings highlight that an efficient dispute resolution paradigm can enhance outcomes, foster trust in the banking system, and provide economic benefits. The paper advocates for legal reforms to promote mediation and arbitration, ensuring faster, cost-effective, and sustainable solutions to NPL disputes .

Source: Nurani Hukum

DOI: 10.51825/nhk.v7i2.30921

Authors: Mario Ihutan Jeremia, Sukarmi Sukarmi, Sihabudin Sihabudin, Budi Santoso

Institution: University of Brawijaya

Language: English

Topic: Indonesian Legal and Regulatory Studies

Subfield: Political Science and International Relations

Field: Social Sciences

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: diamond

OpenAlex ID: W4408083845

FWCI: 1.675

Cites:

Cited by: 1

Related to: 10