Implementation of Indonesian Banking Legal Policy in Consumer and Creditor Protection

This article examines the implementation of Indonesian banking legal policy in the protection of consumers and creditors. The study employs a normative juridical approach to evaluate existing banking regulations and their effectiveness in practice. The primary focus is on the legal protections provided to banking consumers and creditors in cases of loan defaults and dispute resolution. The findings reveal that although Indonesia’s banking regulations have undergone several updates to enhance consumer and creditor protection, there remains a significant gap between the policies and their practical application. The article identifies several factors contributing to this gap, including insufficient regulatory oversight, the complexity of legal procedures, and a lack of consumer awareness regarding their rights. To improve protection, the article recommends strengthening the regulatory framework, enhancing the capacity of supervisory institutions, and intensifying public education on consumer and creditor rights in the banking sector.