Settlement of Default in revolving fund loan Agreements to Cooperatives by the Revolving fund Management Institution for Micro, small and Medium enterprise cooperatives (Lpdb-Kumkm) in Indonesia

The Micro, Small, and Medium Enterprises Cooperative (LPDB-KUMKM) in Indonesia is a business entity that provides loan services to its members through savings and loan units. In practice, loans are based on a written agreement addressed to the debtor to fulfill their obligations as stated in the agreement. However, in practice, many debtors still do not fulfill their obligations to repay the loan according to the terms and time limits that have been determined. This study aims to identify and describe the resolution of cases of defaulting debtors as well as obstacles and efforts in implementing credit agreements. The research method used is a normative legal research method that uses a normative juridical approach. This research was conducted in several libraries in Jakarta. The data sources used are secondary data in the form of regulations and library documents related to the problem studied. The results of the study obtained are that credit agreements are made with an initial agreement and are required to become members of the cooperative. If the debtor does not comply with the agreement, it can be said that the debtor is in default. Meanwhile, efforts to resolve default cases include firstly, restructuring, which includes rescheduling, reconditioning, and restructuring. If this is unsuccessful, a second approach, namely amicable settlement, is pursued.