JURIDICAL REVIEW OF JOINT LIABILITY AGREEMENTS IN OVERCOMING NON-PERFORMING LOANS AT PERMODALAN NASIONAL MADANI

This study examines the juridical review of the joint liability system in addressing non-performing loans at PNM Mekaar Kita in Soppeng Regency. The objective of this research is to understand the implementation of the joint liability system by PNM Mekaar Kita and to analyze the juridical aspects of non-performing loan resolution. This research employs a qualitative method with a normative-empirical approach through literature study, observation, interviews, and documentation. The findings indicate that the joint liability system emphasizes shared responsibility in repaying group-based microloans. However, in practice, non-performing loans still occur, as seen in cases from 2020 due to customers' inability to meet financial obligations. The primary cause is unfavorable economic conditions, despite the agreement including a commitment to debt repayment. Therefore, more effective policies are needed to prevent non-performing loans within the joint liability system.