Can someone be imprisoned (Fraud) for being unable to pay debt?
Answers:
The principle, being unable to pay debt is categorized as civil case (breach of contract) so that it shall not be be criminalized.
It is governed under Article 19 paragraph 2 Law No. 39 Year 1999 regarding Human Rights, says:
“No person found guilty by a tribunal shall be imprisoned or incarcerated for being unable to fulfill the obligations of a loan agreement.”
Besides that, there are several court decision (Jurisprudence) that confirm the same, the following:
- Indonesia Supreme Court’s Decision No. 93K/Kr/1969 dated 11 March 1970 states: “debt case is the civil case”
- Indonesia Supreme Court’s Decision No. 325K/Pid/1985 dated 8 October 1970 states: “civil case shall not be criminalized”
Based on the explanation above, you can understand that someone who could not pay his/her debt could not be criminalized.
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Boris Tampubolon, S.H. is an Advocate and Legal Consultant. He is also the Founder of Law Firm Dalimunthe & Tampubolon Lawyers. He made this website with the aim to provide all information related of law, help and defend you in order to solve your legal problem.