Insolvency 2025

INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Ulyarta Naibaho and Bilal Anwari, ABNR Counsellors at Law

ABNR Counsellors at Law Graha CIMB Niaga 24th Floor Jl Jenderal Sudirman Kav 58 Jakarta 12190 Indonesia

Tel: +62 21 250 5125 Fax: +62 21 250 5001 Email: info@abnrlaw.com Web: www.abnrlaw.com

1. Overview of Legal and Regulatory System for Insolvency/Restructuring/ Liquidation 1.1 Legal Framework The financial restructuring, reorganisation, liquidation and insolvency of business entities and partnerships in Indonesia can be dealt with through court-super - vised proceedings or out-of-court processes. Court-supervised proceedings are primarily governed by Law No 37 of 2004 on Bankruptcy and Suspension of Payments, as partly amended by Law No 4 of 2023 on Financial Sector Development and Reinforcement (the “Omnibus Financial Law”) (the “Indonesian Bank - ruptcy Law”, or IBL), together with civil procedure law, which includes Supreme Court Decree No 109/MA/ SK/IV/2020 on the Guide Book for Resolving Bank - ruptcy and Suspension of Payments Cases, dated 29 April 2020 (the “Supreme Court Manual”). Out-of-court processes are governed by contract law, as set out in the Indonesian Civil Code (ICC), and by other relevant laws and regulations, depending upon the nature of the organisation, as follows. • Sole traders, partnerships and limited partnerships: the ICC. • Limited liability companies: Law No 40 of 2007 on Limited Liability Companies, as amended by Law No 6 of 2023 on the Ratification of Government Regulation No 2 of 2022 (a substitute for Law No 11 of 2020 on Job Creation) (the “Indonesian Com - pany Law”, or ICL).

• Co-operatives: Law No 25 of 1992 on Co-opera - tives (reinstated following the annulment of Law No 17 of 2012 by Constitutional Court Decision No 28/ PUU-XI/2013), as amended by Law No 6 of 2023 on the Ratification of Government Regulation No 2 of 2022 (a substitute for Law No 11 of 2020 on Job Creation), as further amended by the Omnibus Financial Law. • Charities and charitable foundations – Law No 16 of 2001, as amended by Law No 28 of 2004 on the Amendment of Law No 16 of 2001 on Foundations. • State-owned companies: Law No 19 of 2003 on State-Owned Enterprises (SOEs), as amended by Law No 6 of 2023 on the Ratification of Govern - ment Regulation No 2 of 2022 (a substitute for Law No 11 of 2020 on Job Creation), as further amend - ed by Law No 1 of 2025 and subsequently by Law No 16 of 2025 on the Amendment of Law No 19 of 2003 and Government Regulation No 45 of 2005 on the Establishment, Management, Supervision and Dissolution of SOEs (further amended by Gov - ernment Regulation No 23 of 2022 on the Amend - ment of Government Regulation No 45 of 2005 on the Establishment, Management, Supervision and Dissolution of SOEs). • Securities issuers that have conducted public offerings and public companies: (a) Financial Services Authority ( Otoritas Jasa Keuanga ; OJK) Regulation No 31/ Peraturan Otoritas Jasa Keuangan (POJK).04/2015 on the Disclosure of Material Information or Facts by Issuers or Public Companies, partially revoked by POJK No 45 of 2024 on the Development and Strengthening of Publicly Listed Compa - nies;

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