Legal Aspects of the Use of Bilyet Giro as a Means of Payment in Commercial Transactions

Abstract

The study entitled “Legal Aspects of the Use of Bilyet Giro as a Means of Payment in Commercial Transactions” was conducted with the aim of examining, among other things, the legal consequences of using a blank bilyet giro as a means of payment in banking transactions. Based on the research background and objectives, and to provide answers to the main research questions, this study employs a normative juridical approach, which examines law as written in positive legal norms within the national legislative system. The findings demonstrate that the regulation of bilyet giro instruments has, to date, been governed primarily by Bank Indonesia Circular Letter No. 4/670/UPPB/PGB dated January 24, 1972, which was subsequently refined through Bank Indonesia Board of Directors Decree No. 28/32/KEP DIR and Bank Indonesia Circular Letter No. 28/32/UPG. In line with the growing use of bilyet giro instruments, the problems arising from their use have also increased. This is understandable, as the regulation of bilyet giro transactions remains imperfect and is considered insufficient to guarantee legal certainty. One of the issues is that the drawer may cancel a bilyet giro before the offer period expires. Therefore, to maintain a balance between the rights and obligations of the issuer and the holder, Bank Indonesia needs to consider regulating recourse rights (the right to claim payment) for bilyet giro instruments, similar to the provisions applicable to bills of exchange and checks.