JAKARTA. Regulations regarding bankruptcy and suspension of debt payment obligation (lit. Penundaan Kewajiban Pembayaran Utang/PKPU) are said to be perfected in order to be able to meet global competition and maintain favourable business climate.

Rabin Indrajad Hattari, Secretary of Ministry of SOE, expressed said opinion during Restructuring Insolvency & Governance Conference 2023 held last week. In its main speech, Hattari said that the Ministry of SOEs is committed to turn SOE’s business ecosystem into a sustainable one.

Hattari believed that PKPU could be an alternative solution for restructuring process, as long as it matches the company’s needs and capability and is manage carefully. “PKPU process must be carried out with neat preparation by mitigating risks and prioritizing good governance,” he added.

Meanwhile, Darius Tay, Director of BlackOak LLC, one of the speakers in said conference, cite the continuous improvement of implementation of Singaporean bankruptcy law as an example. “Singapore continues to improve legal framework in handling bankruptcy and insolvency issues,” he explained.

Not only that, Tay said that the insolvency professional industry in Singapore consistently contributes fresh ideas and innovations for ecosystem of restructuring. “It allows them [insolvency professionals in Singapore] to handle new issues effectively, both in legal and practice,” he added.

For the record, regulations of insolvency and PKPU in Indonesia have been passed for over 20 years through Act No.37/2004. This act, indeed, has been deemed functional and reaching its purpose. However, the dynamic of economy and credit market in Indonesia has changed tremendously. The discussion forum at Restructuring Insolvency & Governance Conference 2023 was held in order to delve deep into this regulation, as well as becoming the first phase in perfecting points included in it. (KR/ZH)