Corporate Restructuring & Insolvency in Indonesia 2020

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  • Reporters: Indri Pramitaswari “Mita” Guritno, Kadir, Andi Y, Timur Sukirno and Agung Wijaya
  • Index:
    • Introduction
    • Private Restructuring and Court-Supervised Proceedings
    • Roles of the Commercial Court and State Agencies
    • Management of Distressed Entities
    • Conversion from PKPU to Bankruptcy
    • Employment Issues
    • Clawback Procedures
    • Rescue Plans
    • Costs of Proceedings
    • International and Cross-Border Insolvency Law
    • Appendix of Legislation Referred To
      *Click to to see full Index

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Index

A. INTRODUCTION

i. Indonesia's bankruptcy law reform

ii. Current bankruptcy regulations overview

iii. Asset security and recording

a. Hak tanggungan
b. Hypothec over vessels
c. Pledge
d. Fiducia security

B. PRIVATE RESTRUCTURING AND COURT-SUPERVISED PROCEEDINGS

i. Private restructuring

ii. Court-supervised proceedings

a. PKPU proceedings
b. Bankruptcy proceedings

iii. Effects of a PKPU or bankruptcy declaration

a. Effects on stay and enforcement
b. Effects on contracts
c. Specific contract issues

iv. Filing and priority of creditors' claims

a. Filing of creditors' claims
b. Priority of creditors' claims

v. Creditors' meetings and creditors' committee

a. Creditors' meetings
b. Creditors' committee

C. ROLES OF THE COMMERCIAL COURT AND STATE AGENCIES

D. MANAGEMENT OF DISTRESSED ENTITIES

i. Administrators in PKPU proceedings

ii. Curators in bankruptcy proceedings

iii. Obligations for directors of distressed entities

iv. Residual powers

E. CONVERSION FROM PKPU TO BANKRUPTCY

F. EMPLOYMENT ISSUES

G. CLAWBACK PROCEDURES

H. RESCUE PLANS

i. Out-of-court rescue plan

ii. Court-sanctioned rescue plan

I. COSTS OF PROCEEDINGS

J. INTERNATIONAL AND CROSS-BORDER INSOLVENCY LAW

APPENDIX OF LEGISLATION AND REGULATIONS REFERRED TO

 

Sources:

Legislation

  • Faillissements-verorde-ning.

  • Hak Tanggungan Law (Law No 4 of 1996), Arts 1(1), 13, 20.

  • Indonesian Civil Code (effective January 1848), Arts 1131, 1132, 1139, 1140, 1141, 1142, 1143, 1144, 1145, 1146, 1147, 1148, 1149, 1150, 1152, 1153, 1155, 1178, and 1340.

  • Indonesian Penal Code (effective 15 October 1915), Art 398.

  • Law No 2 of 2004 on Settlement of Industrial Relations Disputes.

  • Law No 4 of 1998 on Bankruptcy.

  • Law No 8 of 1995 on the Capital Market, Art 1(1).

  • Law No 13 of 2003 on Labour, Art 151(3), 154, and 165.

  • Law No 13 of 1985 on Stamp Duty, Art 2(3).

  • Law No 17 of 2008 on Shipping, Arts 60(1) and 60(4).

  • Law No 21 of 2011 on the Financial Services Authority.

  • Law No 24 of 2009 on Flag, Language, Country Symbol and National Song, Art 31(1).

  • Law No 37 of 2004 on Bankruptcy and Suspension of Payment, Arts 1.6, 1.11, 2(1), 2(2), 2(4), 2(5), 3(4), 6(5), 6(6), 6(7), 8(2), 8(4), 8(5), 10(1), 11(1), 11(3), 12, 13(3), 14, 15(1), 15(2), 15(3), 15(4), 16(1), 17(2), 24(1), 24(2), 25, 26(1), 36(1), 36(2), 36(3), 37(1), 38, 39(1), 41(1), 41(2), 42(a), 42(b), 42(c), 47(1), 56(1), 57(2), 57(3), 57(5), 70(1), 70(2), 79(1), 80, 84(1), 85(1), 86(1), 87(1), 96, 104, 105, 111, 113(1)(a), 115(1), 116(1)(a), 116(1)(b), 116(2), 127, 133(1), 144, 151, 159(2), 166, 189(1), 189(2), 193(1), 194(1), 199, 200, 201, 202, 222(1), 222(2), 222(3), 223, 225(2), 225(3), 225(4), 226(1), 228(6), 229(3), 229(4), 230(1), 231(1), 231(2), 234(1), 234(3), 236(3), 240(1), 240(3), 242(1), 242(2), 249, 251, 252(1), 260, 269(3), 272, 281(1), 284, 285(2), 285(3), 285(4), 286, 281(2), and 289.

  • Law No 40 of 2007 on Limited Liability Companies Arts 89, 97(3), 97(5), and 97(6).

  • Law No 42 of 1999 on Fiducia Security, Art 1(1), 1(2), 21, and 29(1).

  • Reglement op de Burgerlijke rechtvordering, Art 436.

Regulations

  • Bank Indonesia Regulation No 14/15/PBI/2012 of 2012 on Assessment of Commercial Bank Asset Quality, Arts 10, 12(3), 41, and 42.

  • Bank Indonesia Circular Letter No 15/28/DPNP dated 31 July 2013 on Assessment of Commercial Bank Asset Quality.

  • Financial Services Authority Regulation No 26/POJK.04/2017.

  • Government Regulation in Lieu of Law No 1998 on the Amendment of The Bankruptcy Law.

  • Government Regulation No 21 of 2015 on Registration of Fiducia Security Procedure and Fees to Process Fiducia Security Deed, Art 4.

  • Minister of Law and Human Rights (MOLHR) Regulation No 11 of 2016 as amended by MOLHR Regulation No 2 of 2017 on Guidelines for Remuneration for Curator and Administrator, Arts 2 and 5.

  • Presidential Regulation No 15 of 2004 on the Termination of Duties and Dissolution of the Indonesian Banking Restructuring Agency.

  • Presidential Regulation No 27 of 1998 on the Establishment of the Indonesian Banking Restructuring Agency.

  • Presidential Regulation No 34 of 1998 on the Duties and Authorities of the Indonesian Banking Restructuring Agency.

Regulatory Decisions

  • Head of Jakarta Stock Exchange Decision Number Kep-306/BEJ/07-2004 on Regulation Number I-E on the Obligation on Announcement of Information (pdf).

Cases

  • Supreme Court decision No 704 K/Pdt.Sus/2012.
  • Constitutional Court Decision No 67/PUU-XI/2013.

Commentary

  • Jusuf Anwar, Indonesia’s Corporate Debt (Seng Lee Press Pte Ltd, 2001) ch 19, at pp 187–188.
  • Jerry Hoff, Undang-undang Kepailitan di Indonesia (Tatanusa, 2000) at p 85 (translated).
Corporate Restructuring and Insolvency Indonesia 2020