Reform of Plan Termination in Suspension of Debt Payment Obligations (PKPU) in Indonesia

Abstract

The bankruptcy law exists to ensure justice for both creditors and debtors. This research aims at identifying matters needed to be reformed in bankruptcy law in Indonesia to create justice for creditors and debtors. Specifically, this research focused on the provisions of the termination of a plan achieved from the suspension of debt payment obligations (“PKPU”). This research was conducted using a normative juridical research method with a conceptual and comparative approach. The author examined the bankruptcy laws in Indonesia, evaluated several cases of plan termination in PKPU occurring in Indonesia, and later compared the rules in the bankruptcy laws applied in the United States of America, Netherlands, and Singapore Results of this study indicated that the provisions for plan termination in the bankruptcy law do not protect the debtors’ interests. From the termination plan cases in Indonesia, it was also found that there were confusions in the bankruptcy law in Indonesia in which it did not provide legal certainty for both debtors and creditors. The comparison between the bankruptcy laws in Indonesia to the bankruptcy laws in the United States of America, Netherlands, and Singapore also shows that the reform of bankruptcy law in Indonesia needs to be carried out to create flexibility for the implementation of the plan. These findings are discussed further in this article.