| dc.description.abstract | The function of banks according to Law No. 10 of 1998 concerning amendments
to the Act No. 7 of 1992 in article 3 is determined that the primary function
of banks is as a collector and distributor of public funds. This means that
the presence of banking as a business entity is not solely aimed at mere business,
but there are other missions and one of them is increasing the welfare of society in
common. Therefore, a bank that would extend credit to debtors, both debtors in
the form of an incorporated company and not incorporated company, the
bank is in addition to observing the principles of bank soundness, it also needs to
consider the impact of giving credit toward environmental sustainability.
Banks as financial institutions that manage public funds are required to
optimally manage their business both to manage public funds and to channel
them back to the community in the form of loans to debtors of
incorporated or not incorporated company. Thus, credit can be accomplished in
accordance with its objectives, namely to improve the welfare of society and not
to harm the community.
Precautionary principle should be adhered to, whereas the provisions on banking
activities need to be improved, especially pertaining to distribution of
funds, including increasing the role of environmental impact assessment.
The relationship between banks and debtors in contract law means that the
parties in this case the bank as an enterprise and its customers, either individuals
or businesses that have the same rights and obligations in the conduct of its
business is sensible considering the environmental aspect because the
current environment is an integral part of the global business world and
highly vulnerable to environmental damage.
Bank as a business entity that has the primary function
of collecting funds from society and channel them back to the community in
the form of credit has been duly to include aspects of environmental management
in the credit agreement signed by the customers as in the Law Number 10 of
1998 no single article that strictly regulates the obligation for
banks to include provisions for environmental management. | en_US |
