Restructuring And Insolvency Guide - Indonesia

1. Overview of Statutory Regimes Governing Restructurings, Reorganizations, Insolvencies and Liquidations

Response:

Restructurings and Reorganizations In Indonesia, any restructuring or reorganization that relates to bankruptcy is regulated under Law No. 37 of 2004 concerning Bankruptcy and Suspension of Payment ("Bankruptcy Law"). The law defines two methods of restructuring or reorganization:

1. Bankruptcy is defined as the general confiscation of all assets of the Debtor that will be managed and settled by the administrator ("Administrator") under the supervision of a Supervisory Judge (Article 1 paragraph 1 of Bankruptcy Law).
2. Suspension of Payment or Penundaan Kewajiban Pembayaran Utang (PKPU) is recognized as the court-supervised debt restructuring process, in which the Debtor is permitted to submit a settlement plan known as the "Composition Plan" to their Creditor(s) upon the Debtor's or Creditor's application (Article 222 of Bankruptcy Law).