<![CDATA[This study aims to analyze the mechanism of additional payments in debt agreements, examine the basis for determining such additional payments, and assess their conformity with the principles of civil law at the Activity Management Unit (UPK) of Sidodadi Village, Sekampung District, East Lampung Regency. This research employed a qualitative approach with a field research design. Data were collected through observation, interviews, and documentation, and were analyzed using a descriptive qualitative method with an inductive approach. The findings indicate that the debt agreement mechanism is implemented through a group-based lending system accompanied by an additional payment of 20% of the principal loan amount. This additional payment consists of 13% managed by the UPK to support the sustainability of the revolving fund and 7% allocated for group operational expenses based on inter-village deliberations. From a civil law perspective, the practice has a legal basis because it fulfills the validity requirements of an agreement as stipulated in Article 1320 of the Indonesian Civil Code and is consistent with Article 1765, which permits the inclusion of additional payments in loan agreements. Nevertheless, several issues remain, particularly concerning the transparency of fund management, the clarity of contractual provisions, and the protection of the parties’ interests. Therefore, strengthening transparency and legal certainty is necessary to establish a more equitable and balanced contractual relationship.]]>
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