In the complex world of finance and business, unexpected challenges can arise, putting even the most stable enterprises at risk. At Kusuma & Partners Law Firm, we specialize in helping you navigate these turbulent times with our expert services in Restructuring, Suspension of Debt Payment Obligation (known as PKPU), and Bankruptcy and Insolvency matters in Indonesia. Our lawyers are licensed of Indonesian Advocate and having a special license acting for Administrator and Receiver for bankruptcy matter. We have assisted and represented our clients both as the Debtor or Creditor in Suspension of Debt Payment Obligation, Bankruptcy, insolvency and debt restructuring matters. With our deep understanding of Indonesian Suspension of Debt Payment Obligation and Bankruptcy laws and a commitment to finding practical solutions, we are here to guide you through every step of the process.
Among the most common ways we provide the following services to our clients:
Engaging with our specialized legal services for debt restructuring, PKPU, and bankruptcy can make a significant difference in navigating financial difficulties effectively. Whether you need help restructuring debts, postponing obligations, or managing bankruptcy, we are here to provide the expertise and support necessary to achieve the best possible outcomes for your business. Contact us today to learn how we can assist you in safeguarding your business.
A legal process in Indonesia that allows debtors to propose a restructuring plan to its creditors to avoid 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.
Indonesian Law Number 37 of 2004, and related regulations.
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.
Both debtor and creditor are eligible to file the petition to Indonesian Commercial Court.
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.
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.
Yes, PKPU allows for negotiation with creditors, and it is possible to settle debts for a reduced amount if an agreement is reached.
The court may declare debtor bankrupts, and debtor’s assets could be liquidated to pay off debts.
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.
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.
A Receiver will manage and liquidate your business assets to pay off creditors.
Yes, within a certain timeframe and if a bankruptcy status comes directly from a petition of bankruptcy.
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.
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.
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.
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.
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.
