Juridical Review of Agreements Providing Banking Loans (Credit) to Individual Customers in the Form of General Rural Credit (KUPEDES)

Abstract

This article discusses the important role of the financial system,
especially the People's Business Credit (KUPEDES) program,
in supporting economic development in Indonesia, especially
for Micro, Small, and Medium Enterprises (MSMEs).
KUPEDES is designed to improve access to capital for rural
communities that often have difficulty in meeting formal credit
requirements. This program contributes to poverty alleviation
and encourages local economic growth. With a clear legal
framework, KUPEDES protects the rights and obligations of
banks as credit providers and customers as credit recipients.
The dispute resolution mechanism regulated by the OJK
provides legal certainty, increasing customer confidence in
applying for credit. However, challenges remain, especially in
ensuring customer understanding of credit terms and risks.
Therefore, it is important for financial institutions to provide
adequate education on the legal dimensions of credit
agreements. Implementation of training and counseling
programs can help customers manage their finances wisely.
Overall, KUPEDES is not only a tool to improve access to
capital, but also a driver of financial inclusion that strengthens
the rural economy and supports sustainable growth in
Indonesia. An in-depth analysis of the legal aspects of the
KUPEDES agreement is essential to ensure compliance and
sustainability of rural economic development through financial
inclusion.