PT.

ABC
Parent company pay the NPL ?

PT. JKL PT.DEF PT. GHI Bank XYZ

Subsidiary Subsidiary Subsidiary
Company Company Company NPL
Non Performing Loan

PT. GHI obtained a loan of 5 billion rupiah from Bank XYZ for a period of 5 years. In
the first to third year, the loan and interest can be paid by PT. GHI. However, at the
beginning of the fourth year, due to financial difficulties, PT. GHI was unable to pay
its loan and interest to Bank XYZ. In connection with these conditions, Bank XYZ
asked PT. ABC as the parent company of PT. GHI to pay non performing loan owned
by PT. GHI.
QUESTION:
1. Is the action carried out by Bank XYZ legally correct? Give an explanation and
legal basis.
2. Is PT. ABC obliged to pay the non-performing loan? Give an explanation and
legal basis.