THE IMPLEMENTATION OF THE FREEDOM OF CONTRACT PRINCIPLES ON THE BANK STANDARD CONTRACT

In the common banking practice Indonesia, the commonly-used bank credit agreement is the standard contract, of which clauses have been prepared in advance by the banks. Thus the customers as potential debtors only have the option to accept the entire contents of the agreement or are not willing to accept the clauses either partially or wholly; resulting customers will not be eligible for the credits. It is expected that credit agreements made with specific clauses can provide the security for the banks because public funds saved on the bank needs to be protected, and it should also be able to protect the customers as the debtor and to some extents, they are often in a weak position when faced with banks as creditors.