To leverage collateral value to influence negotiations and secure repayment.
When a company in Indonesia finds itself unable to meet its financial obligations, stakeholders often turn to the PKPU (Penundaan Kewajiban Pembayaran Utang) process as a last-ditch effort to avoid bankruptcy. While PKPU is designed to help businesses restructure and recover, for creditors especially those unfamiliar with Indonesia’s insolvency system it can feel like walking through a legal maze.
That’s why understanding Creditor Strategies in PKPU Proceedings is critical. Whether you’re a bank holding land as collateral or a supplier waiting on unpaid invoices, the way you approach the PKPU process can make all the difference between successful recovery and total loss.
PKPU, or Suspension of Debt Payment Obligations, is Indonesia’s version of a court-supervised debt restructuring process. Unlike bankruptcy, which usually results in asset liquidation, PKPU aims to keep the debtor’s business alive while allowing creditors to recover at least part of what they’re owed.
But let’s be clear: PKPU isn’t just about giving debtors a break. It’s a battlefield where creditor classes secured and unsecured must fight for influence, repayment, and legal protection. Your success depends on how well you understand the rules, timelines, and most importantly, your strategic positioning.
The foundation of any strategy in PKPU must start with the law. PKPU is governed primarily by:
The moment a PKPU application is accepted, everything moves fast. The court appoints Supervisors (Pengurus), and creditors are required to file their claims, vote, and assess a restructuring proposal within a limited timeframe, typically within 45 days (which can be extended).
Missing a deadline or misunderstanding your legal rights can have devastating consequences. That’s why proactive legal support from the beginning is essential for both secured and unsecured creditors.
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Understanding your classification is not just a formality, it directly shapes your power and priority during the proceedings.
Secured creditors are those who hold a legal security or collateral over specific assets, land mortgages, fiduciary guarantees, pledged shares, or machinery. Their main advantage? They get paid first from the proceeds of the secured asset.
But here’s the catch: once PKPU is declared, even secured creditors cannot immediately enforce their collateral. The execution is temporarily frozen to give breathing space to the restructuring process. So, while they have leverage, they must now negotiate within the structure of the PKPU and influence the process smartly.
Unsecured creditors, on the other hand, have no collateral to fall back on. These are typically trade creditors, suppliers, contractors, or professional service providers. Their claims are “general” and they rank lower in repayment priority.
But don’t underestimate their role. In numbers, unsecured creditors often make up the majority, giving them significant voting power. With the right coalition and legal strategy, unsecured creditors can protect their interests and even reject plans that are unfair or unviable.
The decision to initiate or respond to a PKPU petition requires careful thought. Is PKPU the right tool to resolve the debt? Could waiting for bankruptcy give better results? Should you propose your own restructuring plan?
For secured creditors, the risk is losing enforcement momentum. They may want to wait and monitor developments before engaging. But unsecured creditors often more vulnerable, may choose to act quickly, filing the petition to secure their seat at the negotiation table before the debtor’s situation worsens.
Each case is unique. What’s important is evaluating not just the legal pathway, but also the business context, debtor profile, and possible recovery scenarios.
Once the Commercial Court grants PKPU, the process formally begins, and creditors take center stage.
As a creditor, you must:
Don’t assume your rights are automatic. Failure to register on time means losing your right to vote. And in PKPU, your voice or silence shapes the outcome.
In PKPU, approval of the restructuring plan depends on a dual majority system. The plan must be approved by:
This means that even a small group of creditors can block the plan if they hold enough weight or collaborate strategically. So, whether you’re secured or unsecured, forming alliances is often a game-changing move.
Secured creditors, although often in a stronger position, you still need a smart approach:
Remember, it’s about maximizing value, not just winning the legal battle.
Unsecured creditors face an uphill battle but they’re far from powerless.
You might not hold collateral, but if you organize and negotiate well, your voice can shape the entire outcome.
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Too often, creditors make costly mistakes in PKPU because of inexperience or inaction:
Being passive in PKPU is risky. The process rewards those who stay alert and involved.
At Kusuma & Partners, we’ve handled complex PKPU cases, from banking consortiums to small vendors. What we’ve learned is this: PKPU is not a standard procedure. It’s a strategic battlefield.
Unsecured creditors often underestimate their power. Secured creditors, on the other hand, may over-rely on their collateral. In both cases, early legal strategy and active participation make the difference.
Our team provides tailored guidance, from filing claims, to building voting coalitions, to challenging improper proposals. We walk with you to ensure your claim doesn’t just get filed, it gets prioritized.
PKPU is more than just a legal procedure, it’s a turning point. Whether you recover or not often depends on how well you play your role as a creditor.
From understanding your classification to casting your vote, every step matters. You can’t afford to be passive. In a landscape filled with uncertainty, clear creditor strategies in PKPU proceedings offer the best path forward.
If you’re facing a PKPU situation, whether you’re a creditor or considering filing, don’t go in blind. Our experienced insolvency lawyers are ready to help you protect your interests, negotiate effectively, and secure the best possible outcome.
Fill in the form below to get our expert guidance.
“DISCLAIMER: This content is intended for general informational purposes only and should not be treated as legal advice. For professional advice, please consult with us.”
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