The Legal Framework of Negotiable Instruments (Check, Bilyet Giro, And Bill 0f Exchange) under Indonesian Corporate and Commercial Law

Abstract

With the rapid development of technology, significant changes have also occurred in various aspects of human life, including changes in the payment system in Indonesia. In the past, transactions relied solely on cash as the only legal means of payment. However, nowadays, everyone can easily make payments to anyone using non-cash payment methods. As we know, people tend to prefer payment systems that are fast, effective, and efficient. To facilitate transactions, the banking sector has established several types of payment instruments, such as cash, paper-based instruments, and electronic money (e-money). As a means of payment and debt collection, paper-based money functions equivalently to cash, with its authenticity guaranteed through negotiable instruments. In the world of trade, payment traffic is one of the most crucial aspects, and banks play a major role in it. Banks are one of the main drivers of the economy and have several objectives, including strengthening national development, promoting economic growth, ensuring equitable distribution of wealth, and maintaining national stability to achieve public welfare. Trade activities are carried out by individuals engaged in business enterprises. The bank’s responsibility regarding the use of checks arises from an agreement between both parties the bank and the debtor customer known as the basic contract . The use of checks provides benefits not only for customers but also for banks, as it helps facilitate payments between parties involved in business activities.