The Role of Bank Indonesia in Protecting Debtors Credits of House Ownership After the Establishment of Financial Services Authority Institution

Abstract

House is a basic need that plays a strategic role in the formation of character and personality of the nation. Therefore, in order to accommodate the needs of society to own a house, the banks offer housing ownership credit (KPR). The inclusion of a standard clause granting the bank the right to set interest unilaterally without notice to the customer indicates an imbalance of the parties' position in the KPR agreement. Meanwhile, regarding the interest rate, Bank Indonesia is devolved fully to the policy of each bank. This is the basis for the banks to determine the amount of interest expenses unilaterally. Yet theoretically, when interest rates fall, the interest rates on deposits and credit book rates should also decrease. This study aims to determine and analyze the role of Bank Indonesia in protecting costumer debtors of KPR.

Keywords: protection, debtor, credit of house ownership.