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Original Research

LEGAL REFORM IN INDONESIAN PAWNSHOP

ARIS MACHMUD 1, SUPARJI 2, SARDJANA ORBA MANULLANG 3, and CITA CITRAWINDA NURHADI 4.

Vol 17, No 10 ( 2022 )   |  DOI: 10.5281/zenodo.7157031   |   Author Affiliation: Krisnadwipayana University 1,3,4.   |   Licensing: CC 4.0   |   Pg no: 211-227   |   To cite: ARIS MACHMUD, et al., (2022). LEGAL REFORM IN INDONESIAN PAWNSHOP. 17(10), 211–227. https://doi.org/10.5281/zenodo.7157031   |   Published on: 07-10-2022

Abstract

This study aims to examine regulations related to the development of pawning in Indonesia from time to time. Basic Rules of Pawnshops (Pandhuis Reglement) in 1928. Pawning has been known to the Indonesian people since the colonial era and its existence until now. The absence of new regulations related to pawning will harm consumers because many private pawnshops operate under their own rules. In this study the author presents the formulation of the problem: How to Arrange Pawns and Pawning Institutions in the Future? The formulation of the problem above is the Ius Constitituendum – the expected regulation – related to the mortgage guarantee institution. This type of normative legal research is descriptive quantitatively with an analytical approach, a statutory approach, a historical approach. Analysis and construction are carried out in a quantitatively manner, emphasizing legal aspects (rechtbeginselen), especially law relating to pawning. The author applies an interdisciplinary method that combines law and economics. The results of this study showed that Indonesia does not yet have a pawn regulation at the level of the law. The urgency of the pawn regulation, in this case the Bill of Moving Materials, can fulfill the sociological basis of the community for the rule to ensure legal certainty. regulation and consumer protection. so there is a need for legal reform related to pawning.


Keywords

Guarantee Institution; Pawnshop; Position