JAKARTA. Law (UU) Number 37 of 2004 concerning Bankruptcy and Postponement of Debt Payment Obligations (PKPU) is considered to need to be revised and strengthened to increase the attractiveness of investors in Indonesia.

According to Rizky Dwinanto, Managing Partner of DSLC (Dwinanto Strategic Legal Consultant), the law has shifted from its main objective, namely as a means of resolving debts fairly, quickly, transparently and effectively. Dwinanto added, this law is more often a legal tool for creditors in collecting debts from debtors. This means that the majority of Bankruptcy and PKPU applications in Indonesia come from creditors.

Dwinanto emphasized that with the current regulations, debtors' debts that have not been paid for up to 2 months have already been requested by PKPU. Then debts with a minimum value of IDR 100 million that have not been paid can also be submitted directly to PKPU.

“This ultimately becomes a moral hazard. We should first look at the condition of the debtor company and its current economic conditions. Therefore, not every single thing goes to PKPU or bankruptcy," said Dwinanto, in a written statement to idnfinancials.com.

Meanwhile Geoffrey D. Simms, President Director of AJ Capital, stated that currently the economic system has grown more complex and transcends national borders. This development, said Simms, should also be responded to by the regulator.

“This is not just about protecting the economic interests of the company, the debtor. But it also protects the legal rights of creditors," said Simms.

For the record, the number of bankruptcy and PKPU applications in 2022 was recorded at 625 cases. Meanwhile, as of October 14 2023, the number of applications was recorded at 563 cases. (KR/LM)