<![CDATA[This study analyzes the implementation of the principle of good faith in credit agreements and examines effective contractual clauses and internal policies for operationalizing good faith in banking practices. An empirical juridical approach with qualitative methods was employed. Data were collected through literature review and field observations of credit-granting practices, subsequently analyzed descriptively to illustrate prevailing empirical conditions. Findings indicate that: (1) the principle of good faith plays a crucial role in establishing a balanced relationship between banks and debtors, with implementation through honesty, transparency, and responsibility preventing disputes and promoting legal certainty; and (2) clear, balanced contractual clauses and appropriate internal bank policies effectively support the operationalization of good faith. However, in practice, application remains largely administrative and has not been fully operationalized as an effective risk mitigation instrument. This study uniquely integrates normative analysis with empirical observation of credit practices, highlighting the gap between legal doctrine and operational implementation of good faith in Indonesian banking. Findings recommend that banks strengthen internal policies and formulate clear contractual clauses to operationalize good faith as a strategic risk mitigation tool. Grounded in Pacta Sunt Servanda theory, this research contributes empirical evidence that good faith implementation enhances legal certainty and fosters fair contractual relationships, offering actionable insights for banking practitioners and policymakers in credit agreement design.]]>
Copyrights © 2026
