Volume 6.
Number 2, 2025 https://ijble.
com/index.
php/journal/index Implementation of Teachers' Professional Allowance (TPG) Credit:
A Case Study of Non-Performing Loans at PT BPR Aruna Nirmaladuta Gianyar Masrianti Oktaviani.
MA.
I Gede Agus KurniawanA.
I Nyoman Budiana3.
Kadek Julia Mahadewi4 1234Universitas Pendidikan Nasional A Masriantioktaviani@gmail.
A Gedeaguskurniawan@undiknas.
id, 3budiana@undiknas.
4juliamahadewi@undiknas.
ABSTRACT
The development of IndonesiaAos economy cannot be separated from the role Keywords: TPG of financial institutions, particularly Rural Banks (Bank Perkreditan Credit.
BPR Aruna Rakyat/BPR), which focus on financing the lower-middle-income sectors.
Nirmaladuta.
NonOne of BPRAos featured products is the Teacher Professional Allowance performing Loans, (TPG) credit, which uses teachersAo certification allowances as collateral for Risk Management This study examines the implementation of TPG credit at PT BPR Aruna Nirmaladuta, analyzes the factors contributing to nonperforming loans, and explores the legal measures taken to resolve them.
The research employs an empirical legal method with statutory, conceptual, and field approaches through interviews and document studies.
The findings indicate that TPG credit defaults are influenced by internal factors, such as inadequate creditworthiness analysis, and external factors, such as delays in the governmentAos disbursement of the TPG funds.
Resolution efforts are conducted through restructuring, mediation, and litigation to ensure legal INTRODUCTION Indonesia's economic growth is inseparable from the role of financial institutions, both banking and non-banking.
As intermediary institutions, banks primarily function to collect funds from the public, redistribute them in the form of financing, and provide a variety of financial services.
One of the primary mechanisms through which banks distribute funds is credit provision.
Through lending activities, banks not only gain profits but also contribute to economic development by providing capital access to the Among financial institutions.
Rural Banks (BPR) play an essential role in credit BPRs are particularly significant as they can reach lower-middle-income communities that often face difficulties accessing commercial banking services.
This aligns with Law No.
10 of 1998 on Banking, which stipulates that the primary function of banks is to collect and redistribute public funds through credit.
Hence.
BPRs are not merely supplementary within the national financial system but also act as key drivers of grassroots economic development.
One of the emerging credit schemes aligned with government policies is the Teacher Professional Allowance (TPG)-based credit.
This type of credit is offered to teachersAiboth civil servants and non-civil servantsAiwho receive professional certification allowances as recognition of their professionalism.
The legal foundation for the teacher professional allowance is established in Law No.
14 of 2005 on Teachers and Lecturers and Government Regulation No.
74 of 2008 on Teachers, which guarantees teachersAo rights to receive professional allowances.
These allowances are then used as loan repayment guarantees through a deduction mechanism from the disbursed allowance.
Theoretically, this mechanism ensures greater security due to its clear payment source.
However, in practice, challenges Volume 6.
Number 2, 2025 https://ijble.
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php/journal/index remain, such as delays in allowance disbursement and misuse of credit funds, which can hinder timely loan repayments.
Banks play a strategic role in societyAos economic life.
Through their operations, the public can obtain loans .
redit distribution functio.
or deposit funds .
und collection functio.
In todayAos globalized context, banking services have become increasingly diverse and innovative (I Gede Agus K.
, 2.
Nonetheless, the distribution of TPG credit at BPR Aruna faces challenges, particularly non-performing loans (NPL.
, which occur when debtors fail to fulfill their repayment obligations on According to Financial Services Authority Regulation (POJK) No.
11/POJK.
03/2015 on BPR Asset Quality and Bank Indonesia Circular Letter No.
13/30/DPNP .
, credit collectibility is classified into five categories: current, special mention, substandard, doubtful, and loss.
Despite the direct deduction mechanism that should theoretically ensure payment certainty, problematic loans still occur, indicating that risks in TPG-based lending persist and must be managed prudently (Hermansyah, 2.
Both internal and external factors influence non-performing loans in the TPG credit scheme at BPR Aruna.
External factors include delays in the governmentAos disbursement of teacher allowances as stipulated in the Ministry of Education and Culture Regulation (Permendikbu.
No.
19 of 2019.
Internal factors involve the misallocation of credit funds for short-term consumptive needs, which hinders longterm repayment capability.
Additionally, there are weaknesses in the bankAos credit analysis, where applications are not always assessed under prudential principles as required by POJK No.
42/POJK.
03/2017 on BPR Risk Management.
These factors combined increase the likelihood of loan default and consequently deteriorate the bankAos asset quality (Harahap.
, 2.
Non-performing loans pose serious threats to BPR operations, including BPR Aruna.
High NPL ratios can disrupt liquidity, reduce lending capacity, and even threaten business sustainability due to limited capital compared to commercial banks.
Furthermore, reputational damage may occur as public trust declines following frequent loan defaults.
This situation contradicts the consumer protection principles under Law No.
8 of 1999, which emphasizes legal certainty, comfort, and safety for Therefore, implementing robust risk management, continuous supervision, and a thorough evaluation of TPG credit mechanisms are essential to maintain banking soundness and protect customer interests (Wibowo.
, 2.
Previous studies have highlighted the interrelation between teacher certification, professional allowances, and credit risk.
Anggraini and Syaifullah .
found that teacher certification positively influences teachersAo competence, professionalism, and welfare, although its implementation still faces administrative barriers.
Fauziana and Apriani .
emphasized that BPRs offering educator certificate-based loans have not fully applied risk management principles, leading to potential credit defaults without clear Standard Operating Procedures (SOP) and risk committees.
Meanwhile.
Mustaqfirin .
concluded that teacher certification-based financing could enhance Islamic banksAo profitability, as reflected in the annual increase of ROA.
ROE, and NPM Based on the above, this study, entitled AuImplementation of TeachersAo Professional Allowance (TPG) Credit: A Case Study of Non-Performing Loans at PT BPR Aruna NirmaladutaAy, aims to examine the legal aspects of using TPG as collateral in credit agreements and analyze the legal actions taken by PT BPR Aruna Nirmaladuta to resolve non-performing loans arising from such schemes.
This Volume 6.
Number 2, 2025 https://ijble.
com/index.
php/journal/index approach is expected to contribute to the development of banking law practices, particularly within BPR institutions, and provide policy recommendations to improve TPG-based credit agreement mechanisms.
These improvements encompass legal certainty, protection for both creditors and debtors, and the effectiveness of nonperforming loan resolution.
METHOD
This study employs an empirical legal research method, which views law not only as a set of written norms but also as a manifestation of actual behavior within social practices.
The focus of the research is directed toward the legal framework governing banking and the TeachersAo Professional Allowance (TPG), as well as its implementation in the credit distribution practices at PT BPR Aruna Nirmaladuta, including the mechanisms for resolving non-performing loan cases.
The research utilizes several approaches: .
The statutory approach, which examines positive legal foundations relevant to banking and professional allowance regulations.
The conceptual approach, which explores the theories and doctrines concerning credit agreements, collateral, and default.
The factual approach, which investigates the real practices through interviews with bank employees and borrowers, as well as through a review of internal documents.
The data sources consist of primary data and secondary data.
Primary data were collected through interviews with bank officials and TPG credit recipients, while secondary data were obtained from literature studies, including statutory regulations, books, journals, scholarly articles, and expert opinions in the field of law.
Data collection techniques included document study and interviews, while data analysis employed an integrated qualitative and quantitative method.
The qualitative analysis was used to describe findings in relation to legal norms and field practices, whereas the quantitative analysis was used to process numerical data, such as credit distribution volume, collectibility levels, and non-performing loan ratios.
The integration of both analytical methods is expected to yield a comprehensive understanding of the regulatory framework, implementation process, and resolution mechanisms of TPG credit at PT BPR Aruna Nirmaladuta.
RESULTS AND DISCUSSION
Results Overview of PT BPR Aruna Nirmaladuta Gianyar Figure I: TPG-Based Credit Distribution Mechanism PT BPR Aruna Nirmaladuta, operating in Gianyar.
Bali, is a Rural Bank (BPR) that offers a flagship product, the Teacher Professional Allowance (TPG) Credit.
This Volume 6.
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php/journal/index credit scheme is aimed at teachers who receive government-issued educator certification and TPG.
The scheme applies a direct deduction system from the TPG account, initially considered secure due to its reliance on routine funds.
The credit distribution mechanism involves several stages, beginning with the submission of a debtorAos request via WhatsApp, preliminary review by the Non-Cash Teller, verification by the Operational Manager or Branch Office Head, and finally the issuance of an ATM guarantee card under a dual-custody principle together with the Non-Cash Teller or Customer Service (CS).
All transactions conducted via EDC machines or ATMs are strictly supervised and must be accompanied by supporting evidence such as initial balance checks, transfer proofs .
f applicabl.
, and posttransfer balance verification.
Each transaction is recorded in the TPG Credit Transaction Book, while ATM cards are jointly held by authorized personnel, and all administrative documents are archived to ensure the security, transparency, and accountability of the credit process.
Credit Collectibility Categories The study found that TPG credit collectibility refers to the Financial Services Authority Regulation (POJK) No.
11/POJK.
03/2015.
Table 1: Credit Collectibility Categories According to POJK No.
11/POJK.
03/2015
Category Criteria Current Installments are paid on time without arrears.
Special Mention Arrears O 90 days.
Substandard Arrears 91Ae120 days.
Doubtful Arrears 121Ae180 days.
Loss Arrears > 180 days.
Interviews with bank officials indicate that some TPG credits gradually moved from AucurrentAy to AusubstandardAy and eventually AulossAy.
Factors Causing Non-Performing Loans (NPL.
Field data identified two dominant factors contributing to NPLs:
Internal Factors:
Inadequate creditworthiness analysis of prospective debtors.
Full reliance on educational certificates and TPG guarantees without assessing additional financial capacity.
External Factors:
Delays in TPG deductions by the government.
Use of TPG funds by teachers for other urgent needs outside credit Table 2: Factors Causing Non-Performing Loans in TPG Credit at PT BPR Aruna Internal Factors External Factors Insufficient debtor credit analysis Delayed TPG transfer from the government Minimal post-disbursement monitoring Utilization of TPG for urgent family needs Volume 6.
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php/journal/index Credit Condition TABLE 3: BPR Credit Growth in Indonesia.
December 2020AeDecember 2024 No.
Year Credit Realization Indonesia Credit Realization Bali Credit Realization Aruna
1 2020 110,170
38,952
161,083,340
2 2021 116,580
43,097
163,925,825
3 2022 129,294
45,818
186,628,033
4 2023 140,788
50,097
200,196,091
5 2024 148,896
53,841
241,444,759,532
Table 3 shows a positive growth trend in BPR credit nationally, in Bali, and at BPR Aruna between December 2020 and December 2024, reflecting post-pandemic economic recovery, increased MSME access, and successful digital banking Nationally.
BPR credit grew by 35.
2%, in Bali by 38.
2%, driven by tourism recovery, while BPR Aruna recorded a substantial increase due to aggressive expansion, service digitalization, and rising customer confidence.
This trend highlights the important role of government and OJK policies in promoting productive credit and sustainable opportunities for BPRs.
Table 4: Non-Performing TPG Credit Condition at Aruna
No Year
Total OS (IDR) DSA
160,117,364 1
4 August 2025 1,630,824,731 11 Data in Table 4 indicate a significant shift from healthy credit without NPLs in 2022Ae 2023 to emerging NPLs in 2024 (IDR 160,117,364, 1 debto.
and a sharp increase by August 2025 (IDR 1,630,824,731, 11 debtor.
, signaling a decline in portfolio quality and serious institutional risk.
This upward trend requires strengthening credit assessment systems, strict debtor monitoring, and restructuring to prevent further Table 5: Non-Performing TPG Credit Distribution at Aruna No Days Past Due OS Amount (IDR) DSA 132,802,822.
24,496,921.
144,014,118.
164,588,116.
178,406,118.
183,150,964.
131,227,857.
159,348,112.
175,282,924.
177,389,414.
160,117,363.
Total 1,630,824,731.
The NPL situation at TPG Aruna is serious, with a total OS of IDR 1,630,824,731 and 11 debtors all classified as DSA = 1, indicating high risk due to significant repayment delays.
Days past due range from 93 to 606 days, reflecting weak credit management and monitoring.
The worst case, with 606 days overdue Volume 6.
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php/journal/index totaling IDR 160.
1 million, demonstrates collection failure, while overdue amounts above 300 days (IDR 175Ae177 millio.
and 90Ae200 days (IDR 132Ae164 millio.
could worsen the NPL ratio if not promptly addressed.
The distribution of OS across overdue categories indicates that the problem is systemic, requiring comprehensive evaluation of credit provision, post-credit monitoring, and more aggressive, targeted restructuring and recovery strategies.
Credit Collateral Mechanism The type of collateral used in TPG credit is relatively unique compared to conventional Table 6: TPG Credit Collateral Mechanism Collateral Type Description Diploma (S1/S.
Held by the bank as a moral binding.
Educator Certificate Indicates debtor eligibility for TPG.
TPG Savings Account Used for direct installment deductions.
ATM
Held by the bank to ensure fund control.
Discussion Analysis of Factors Causing Non-Performing Loans in TPG Credit NPLs in the TPG credit at PT BPR Aruna Nirmaladuta are influenced by a combination of internal and external factors.
Theoretically, credit is a fiduciary agreement whereby the debtor is obligated to repay the loan with interest within the agreed period (Subekti, 2020.
Hermansyah, 2.
In TPG-based credit, this trust relies on the assumption that professional allowances as installment guarantees ensure payment certainty (Putri et al.
, 2.
However, findings and interviews reveal that debtor creditworthiness assessments remain insufficient, particularly in evaluating financial capacity beyond TPG and certification collateral.
This is a major internal factor increasing NPL risk.
Additionally, post-disbursement monitoring is minimal, so potential payment delays are not detected promptly (Interview with Operational Manager, 2.
Dominant external factors include delays in TPG disbursement by the government, hindering installment payments, and the use of TPG funds by teachers for other consumptive needs, disrupting repayment priority.
Despite TPG theoretically being a strong guarantee due to routine funding, external factors beyond the bankAos control remain a significant obstacle to repayment (POJK No.
11/POJK.
03/2015.
Interview, 2.
Overall, the causes of NPLs in TPG credit reflect an imbalance between prudential credit analysis and the debtorAos economic reality.
This aligns with the legal protection theory, which requires balancing the interests of creditors and debtors to achieve justice and legal certainty in credit relationships (Rahardjo, 2020.
Hermansyah, 2.
Legal Efforts in Resolving Non-Performing TPG Credit at PT BPR Aruna Nirmaladuta To address NPLs in TPG credit.
PT BPR Aruna Nirmaladuta implements structured legal measures in stages, consistent with theories of problematic credit dispute resolution, including non-litigation and litigation processes (Harahap, 2021.
Anwar, 2.
The first stage is credit restructuring, involving rescheduling installments and reducing interest rates according to the debtorAos capacity.
According to bank management interviews, restructuring considers the debtorAos payment history and Volume 6.
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php/journal/index future repayment potential, aiming to improve credit performance without resorting to formal legal action.
This approach aligns with the principle of good faith in agreements, encouraging amicable and proportional dispute resolution (Interview, 2025.
Civil Code Article 1.
If restructuring fails, the bank conducts mediation, inviting debtors to negotiate a settlement to ease repayment burdens.
This process involves direct, persuasive communication to minimize conflict and maintain positive bank-debtor relations (Wibowo, 2021.
Huala, 2.
Mediation serves as an alternative non-litigation resolution emphasizing time and cost efficiency.
If both measures fail and the debtor remains uncooperative, the bank pursues litigation, filing civil claims to enforce its rights and recover losses.
Litigation is the final recourse under civil law provisions regarding default (Civil Code Article 1.
, ensuring legal certainty for the creditor (Interview, 2025.
Rahardjo, 2.
This staged approach reflects the progressive dispute resolution theory, moving from non-litigation to litigation while respecting legal protection principles for both parties (Wibowo, 2021.
Huala, 2.
It aims to balance the bankAos interests as creditor and the debtorAos rights to prevent excessive loss from TPG-based NPLs.
CONCLUSION
Based on the results of the study on Teacher Professional Allowance (TPG)-based credit at PT BPR Aruna Nirmaladuta Gianyar, several conclusions can be drawn as TPG Credit as a Flagship Product: TPG credit is a flagship banking product with a mechanism of direct installment deductions from teachers' professional allowance accounts, theoretically providing a strong guarantee.
However, in practice, the risk of non-performing loans has increased year by year.
Credit Collectibility Categories: Credit collectibility follows the provisions of POJK No.
11/POJK.
03/2015, ranging from AuCurrentAy to AuLoss.
Ay Some credits have already shifted status toward substandard and loss categories.
Factors Causing Non-Performing Loans: The causes of non-performing TPG credit arise from two main aspects:
Internal factors: inadequate comprehensive creditworthiness analysis of prospective debtors and minimal post-disbursement monitoring.
External factors: delays in TPG disbursement by the government and the utilization of TPG funds for other consumptive needs by teachers.
Credit Collateral Mechanism: The collateral mechanism for TPG credit is unique, involving the use of diplomas, educator certificates, savings accounts for direct installment deductions, and ATM cards as the bankAos fund control Resolution of Non-Performing Loans: Efforts to resolve NPLs are implemented progressively through credit restructuring, non-litigation mediation, and, if unsuccessful, civil litigation as the final step.
This approach demonstrates the bankAos effort to balance the protection of both creditor and debtor interests.
Acknowledgements With sincere gratitude, the author would like to express profound appreciation to Prof.
Dr.
Ir.
Nyoman Sri Subawa.
Sos.
IPM.
ASEAN.
Eng.
Rector of Universitas Pendidikan Nasional Denpasar.
Dr.
Putu Eva Ditayani Antari.
CCD.
Dean of the Faculty of Law.
Kadek Julia Mahadewi.
Head of the Volume 6.
Number 2, 2025 https://ijble.
com/index.
php/journal/index Law Study Program.
and Dr.
I Gede Agus Kurniawan.
CCD.
Research Proposal Supervisor, for their guidance and direction.
Gratitude is also extended to the examining lecturers I and II for their valuable suggestions, all faculty members and staff of the Faculty of Law at Universitas Pendidikan Nasional Denpasar for their support, as well as the authorAos beloved parents, family, and siblings for their continuous prayers and encouragement.
The author also thanks friends and colleagues who provided motivation and support, enabling the successful completion of this research proposal.
References