Yes, individuals can also file under certain conditions.
In the complex world of business, one wrong financial turn can push even the most promising companies to the edge. If you’re in Indonesia, you’ve probably heard the terms PKPU and Bankruptcy tossed around when a company can’t meet its obligations. But what do they really mean? And more importantly — which one could save your business, and which one means it’s game over? In this guide, we break down for you, based on Indonesia’s legal framework, best practices, expert strategies, and crafted it to help you make the smartest strategic choices.
No one plans to fail, but when debts pile up and cash runs dry, knowing your legal options can mean the difference between survival and collapse.
That’s why understanding PKPU and Bankruptcy is so crucial. These aren’t just legal processes — they are life-saving (or life-ending) mechanisms for companies in distress. If you’re a business owner, creditor, investor, or even an employee, understanding these tools can protect your interests and help you navigate turbulent times.
PKPU, short for Penundaan Kewajiban Pembayaran Utang, translates to “Postponement of Debt Payment Obligations.” At its heart, PKPU is designed to give debtors breathing space — a temporary pause that allows them to propose a repayment plan, restructure debts, and avoid the full force of bankruptcy.
Key facts:
In short, PKPU is about restructuring — not liquidating.
To file for PKPU, certain legal conditions must be met:
Once the court accepts the petition, a temporary PKPU is granted (usually 45 days), during which the debtor prepares a repayment proposal.
The beauty of PKPU? It buys time to negotiate and restructure, keeping the company alive.
Bankruptcy, or Kepailitan, is the legal process where a court declares a debtor insolvent, triggering the liquidation of its assets. Unlike PKPU, Bankruptcy isn’t about recovery — it’s about settlement.
The goal is to sell off the debtor’s assets and distribute the proceeds fairly among creditors.
Key facts:
In Bankruptcy, the focus is on asset liquidation and creditor settlement, not on saving the business.
To file for Bankruptcy, certain legal conditions must be met:
Once declared, the debtor loses control over its assets, which pass into the hands of a Curator (Trustee / Kurator).
Both processes fall under:
This law ensures fair treatment of creditors while offering a chance for debtor recovery where possible.
Interestingly, both debtors and creditors can initiate PKPU and Bankruptcy proceedings. Additionally, certain government bodies or regulatory agencies can sometimes petition the court, especially when public interest or financial stability is at stake.
| Aspect | PKPU | Bankruptcy |
| Objective | Debt restructuring | Liquidation and settlement |
| Initiators | Debtor or creditor | Debtor or creditor |
| Legal Oversight | Commercial Court, Supervisory Judge, Administrator (Pengurus) | Commercial Court, Curator (Kurator) |
| Control Over Business | Debtor retains control under supervision | Curator takes full control |
| Impact on Operations | Business can continue | Business typically ceases |
| Duration | Up to 270 days | Until all assets liquidated |
| Outcome | Composition plan or bankruptcy if failed | Asset liquidation and debt settlement |
| Creditor Involvement | Active in negotiation and voting | Passive, waiting for distribution |
PKPU is more than just a legal maneuver — it’s a strategic lifeline:
But be warned: PKPU only works if the debtor has a viable business recovery plan and a poorly planned PKPU can quickly spiral into bankruptcy.
Sometimes, no matter how creative or determined your business are, bankruptcy is inevitable:
In such cases, bankruptcy allows for an orderly, legal settlement, protecting creditor rights especially for setting debts, and minimizing chaos.
READ MORE:
Businesses need to consider:
If yes, PKPU is worth pursuing. But if the business is sinking with no life raft, Bankruptcy may be the safer legal route.
These mistakes can derail both PKPU and Bankruptcy processes — which is why expert legal guidance is critical.
At Kusuma & Partners, we have handled many of PKPU and Bankruptcy cases, helping clients navigate:
Our advice? Move quickly, work with legal experts, and maximize your legal leverage.
Understanding PKPU and Bankruptcy is not just a legal decision — it’s about business survival, protecting livelihoods, and navigating one of the most critical moments a company can face.
With the right legal partner, you can turn crisis into opportunity.
Facing financial distress or facing unpaid account receivable? Fill in the form below to get legal expert guidance on PKPU and Bankruptcy strategies that protect your future.
“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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