About us

What is the typical settlement of debt collection?

Typically, the debtor will pay the debt fully; or enter into a debt agreement that contains the installment of payment by giving an asset guarantee.

How can I enforce a debt agreement?

If the debtor fails to comply with an agreed settlement, legal enforcement measures such as executing the debtor’s asset and court proceedings are conducted.

How does the debt collection process work in Indonesia?

The process is started with legal advice and case analysis by our lawyers, sending demand letters, followed by negotiation and settlement. If the debtor remains unresponsive or refuses to pay, further legal actions like filing a lawsuit through the Indonesian court may be considered if necessary.

How many demand letters shall be sent to the debtor?

In Indonesia, the best legal practice is to send 2x (twice), or a maximum of 3x (three times) demand letters.

What happens if the debtor ignores the first demand letter?

The next steps could include sending the second demand letter and further negotiations. Persistent non-compliance may lead to further legal action or court proceedings.

How long does the debt collection process take?

Depending on the complexity of the case and the debtor’s response.

What are the benefits of out-of-court debt collection?

Typically, faster, less expensive, and less adversarial than going to court. It helps maintain business relationships and avoids lengthy legal battles in court.

Are there any time limits for claiming an unpaid debt in Indonesia?

Yes, there is a statute of limitations, which is the period from the due date of the debt in which you must initiate recovery actions for the debtor.

Can debt collection affect my business relationship?

Handled professionally, debt collection can maintain or even strengthen business relationships by demonstrating a commitment to fair and timely financial practices. Open communication and a fair approach are key.

What if the debtor disputes the debt?

If the debtor disputes the debt, you may need to provide evidence supporting your claim. This could involve negotiations, mediation, or legal action to resolve the dispute.

Can I include interest on overdue debts?

Yes. The interest rate should comply with Indonesian laws.

What should I do if I receive a counterclaim from the debtor?

It is important to consult with our lawyer to assess the validity and implications of the counterclaim. Our lawyer can help you respond appropriately and protect your interests.

What is Suspension of Debt Payment (PKPU)?

A legal process in Indonesia that allows debtors to propose a restructuring plan to its creditors to avoid bankruptcy.

What is Bankruptcy?

It is a legal status declared by the commercial court for a debtor who is unable to pay its debt when they fall due and whose financial condition is deemed irreparable. This process involves liquidating the debtor’s asset to pay off creditors.

What is the prevailing law of Suspension of Debt Payment (PKPU) and Indonesian Bankruptcy matters?

Indonesian Law Number 37 of 2004, and related regulations.

What are the criteria of Debtor to be declared under Suspension of Debt Payment (PKPU) or Bankruptcy status?

Debtor shall have at least 2 (two) creditors and have failed to pay at least one debt that is due and payable, and the debt criteria can be proven simply.

Who may file a Suspension of Debt Payment (PKPU and Bankruptcy petition?

Both debtor and creditor are eligible to file the petition to Indonesian Commercial Court.

What is the role of Administrator and Receiver?

The Administrator is appointed by commercial court to carry its duty and supervised by a Supervisory Judge during Suspension of Debt Payment (PKPU) process. While the Receiver runs its duty and supervised by a Supervisory Judge during Bankruptcy process.

What happens during PKPU process?

Creditors cannot take enforcement actions against debtor; an Administrator is appointed to oversee the process and a restructuring plan is proposed and voted on by creditors.

Can I settle debts for less than what I owe through PKPU?

Yes, PKPU allows for negotiation with creditors, and it is possible to settle debts for a reduced amount if an agreement is reached.

What if a PKPU plan is rejected by creditors?

The court may declare debtor bankrupts, and debtor’s assets could be liquidated to pay off debts.

How long does the PKPU process take?

The Temporary PKPU period is 45 days, which can be extended to a maximum of 270 days (Permanent PKPU) upon approval if a feasible restructuring plan is in progress. This provides ample time to negotiate and implement a debt repayment strategy.

What happens if Restructuring Plan (Proposal) during PKPU process is approved?

The Restructuring Plan (Proposal) becomes legally binding, and creditors must adhere to the agreed-upon terms. The Debtor will follow the new repayment schedule as proposed in Restructuring Plan, which provides relief and helps stabilize its financial situation.

What happens to my business during bankruptcy?

A Receiver will manage and liquidate your business assets to pay off creditors.

Can I appeal a bankruptcy decision?

Yes, within a certain timeframe and if a bankruptcy status comes directly from a petition of bankruptcy.

How can I prevent my business from going bankrupt?

Timely debt restructuring, effective financial management, and utilizing legal protections like PKPU can help prevent bankruptcy. Engaging our legal services early can provide the guidance needed to avoid financial insolvency.

How does bankruptcy impact my personal assets as a business owner?

For incorporated entities, bankruptcy generally affects the company’s assets only. However, for sole proprietorships or personal guarantees, your personal assets may be at risk. We can advise on the best course of action to protect your interests.

Can I recover from bankruptcy and start a new business?

Yes, once your bankruptcy proceedings are completed, you can start anew. Bankruptcy laws aim to give individuals and businesses a fresh start, though there may be restrictions and considerations to address.

How can I ensure a successful PKPU process?

Success depends on presenting a feasible Restructuring Plan, effective negotiations, and legal compliance. Engaging our experienced lawyers increases your chances of a favorable outcome, providing strategic advice and representation.

How do I start the process of debt restructuring or bankruptcy?

Contact us for a consultation. We will assess your situation, provide legal advice, and guide you through the necessary steps to initiate debt restructuring, PKPU, or bankruptcy proceedings.

Failure to register a foreign marriage in Indonesia may lead to not having a legal standing and complications in legal matters such as property ownership and inheritance matters. It is important to ensure proper registration to secure legal recognition and rights in Indonesia.

Minimum wages are set by the government and vary by region. Employers must ensure that wages paid to employees are at least equal to the regionally established minimum wage. Failure to comply can result in sanctions and penalties.

How long does it take to process a tax refund?

The processing time for a tax refund can vary. Generally, it may take few months, depending on the complexity of your claim and the completeness of your documentation.

Can I apply for a tax refund if I have unpaid taxes from previous years?

You may still be eligible for a tax refund even if you have unpaid taxes from previous years. However, the DJP may offset your refund against any outstanding tax liabilities. It’s important to address any unpaid taxes with the DJP to ensure a smooth refund process.

Is it possible to receive a tax refund in foreign currency?

Typically, tax refunds are issued in Indonesian Rupiah (IDR).

What is the deadline for applying for a tax refund?

There is generally a statute of limitations for filing a tax refund claim, typically within a few years from the end of the fiscal year in which the overpayment occurred. It’s important to file your claim promptly to avoid missing the deadline.