The Role of “Mantri” in Reporting the Feasibility Data of the Prospective Debtor and Its Effect on the Number of Bad Loans

Abstract--People's Business Credit (KUR) is one of the government programs in increasing access to inancing for Micro and Small and Medium Enterprises. The role of Mantri is very important in the distribution of KUR at PT. Bank Rakyat Indonesia (Persero) Tbk, to the public. Mantri is one of the positions assigned to analyze, promote, and collect payment of debtors. However, KUR that has been distributed to the public was sometimes not as expected. Some KUR debtors experienced a decrease in their credit collectibility because they were unable to pay installments. This research is an empirical law study to determine the implementation of duties and responsibilities of Mantri in the distribution of BRI Micro KUR. The research result indicated that the implementation of the prudential principle by Mantri at the pre-contractual stage in the distribution of KUR Micro BRI greatly influenced the number of bad loans. Mistakes that were often made by Mantri at the pre- contractual stage were errors in checking the financial statements, length of business activity, and business prospects of the debtor so that the amount of credit given was not in accordance with the debtor's ability to pay.