CONCEPT OF SYNDICATED LOAN AGREEMENT BASED ON ECONOMIC DEMOCRACY FOR MICRO,SMALL AND MEDIUM ENTERPRISES （MSMES） IN INDONESIA

The banking institutions play an important role in providing development funds through one of their efforts such as syndicate loan. Syndicated loan is given only for large companies, because the loan value which is given from some banks to one debtor, higher than Legal Lending Limit. Economic democracy will give the priority to public welfare not to individual prosperity. Society value in economic life is justice. Article 2 of Law No. 10 of 1998 for banking which gives the clear explanation that Indonesian banking do their business based on economic democracy by using prudential principle. The definition of economic democracy is giving the greatest opportunities to all people to enjoy an increase in prosperity from bank functions, collector and distributor of public funds. As well as in syndicated loans, economic democracy principles should apply to all public, micro, small, medium and large enterprises to enjoy the loan syndication in order to improve all public welfare.