Bankruptcy and Suspension of Debt Payment Obligations

The Indonesian system provides two primary legal avenues for dealing with distressed debt: Bankruptcy (Kepailitan) and Suspension of Debt Payment Obligations (Penundaan Kewajiban Pembayaran Utang or PKPU).

Currently Yuriutomo works at the SSEK law firm.

This publication is intended for informational purposes only and does not constitute legal advice. Any reliance on the material contained herein is at the user’s own risk.

One way a company can recover its receivables is by filing for bankruptcy. The company must prove that the debtor has two creditors. The steps for bankruptcy are as follows.