ILLEGAL LOAN SHARK BUSINESS

This usury or loan shark (Woeker) agreement is voidable by a civil judge upon a lawsuit by the debtor. A reason that the debtor can state is the following:

That at the time the agreement was made, the debtors were in a fragile position and were pressured by the need for money. The debtor has no choice, so they obediently follow the creditor’s wants. The agreement is made with burdensome conditions to the debtor and pressures the debtor to accept it.

In approaching an agreement that is usury/woeker in nature, the Judge can revoke the powers of the agreement by interpreting that the process of making the agreement has a defect in the will (wilsgebreg) of one of the parties entering into the agreement. This wilsgebreg factor arises because the creditor has “taken advantage of someone’s problem” or “misbruik van omstandigheden.”

–> Supreme Court Decision No. 316 K/Pid/1983, dated 28 August 1989.

Source :

Compilation of Supreme Court Abstract Legal Decisions on the Law of Debts and Receivables, By: Ali Boediarto, S.H. Publisher: Indonesian Judges Association, Page 294.

Best regards,

Fredrik J. Pinakunary