INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Ulyarta Naibaho and Bilal Anwari, ABNR Counsellors at Law
• suspension of payments ( Penundaan Kewajiban Pembayaran Utang , or PKPU), whereby an admin - istrator will be appointed. The bankruptcy and PKPU processes are intertwined because restructuring can emerge from a bankruptcy proceeding, since the IBL gives a bankrupt debtor the opportunity to offer a composition plan, while liquida - tion can result from a PKPU proceeding, especially if such proceeding fails to produce a composition plan that is acceptable to the creditors. Bankruptcy Proceedings If the commercial court approves a bankruptcy peti - tion, the IBL states that it is required to render a bank - ruptcy declaration and appoint one or more receiver(s) and a supervisory judge. After the bankruptcy declaration is rendered by the commercial court, the affairs of the bankrupt debtor are handled and managed by one or more court-appointed receivers. The directors of the debtor, if it is a legal enti - ty, lose their authority to manage the bankrupt debtor’s affairs and estate, as these authorities are transferred to the receiver. The receiver is subject to the supervision of a court-appointed supervisory judge. PKPU Proceedings If the commercial court approves a PKPU petition, the debtor will be given a provisional PKPU for up to 45 days, and one or more administrator(s) and a supervisory judge will be appointed. The 45-day pro - visional PKPU may be extended up to a maximum of 270 days, whereupon it becomes a permanent PKPU. After the PKPU declaration is rendered by the com - mercial court, the affairs and the estate of a debtor in PKPU proceedings are handled and managed jointly by the director(s) of the company and one or more court-appointed administrators. The administrator is subject to the supervision of a court-appointed super - visory judge. The debtor is still entitled to manage and dispose of its assets, but only jointly with the admin - istrator. The debtor cannot conduct any management or ownership actions relating to all or part of its assets without the approval of the administrator.
Any violation of this provision will entitle the admin - istrator to take whatever action is required to ensure that the debtor’s assets are not jeopardised by the debtor’s action. The debtor’s performance of its obli - gations arising after the commencement of the PKPU proceedings, without the administrator’s consent, may only be imposed on the debtor’s assets to the extent that such assets gain advantage/benefit from this performance. Dissolution and Liquidation Proceedings The ICL provides for another type of out-of-court insolvency proceeding, known as a dissolution and liquidation proceeding (“D&L proceeding”), whereby a liquidator is appointed. Under this procedure, no restructuring can be done as it is aimed at liquida - tion, and the end result will be the termination of the company’s legal entity status. 1.3 Statutory Officers A receiver is appointed in bankruptcy proceedings, while an administrator is appointed in PKPU proceed - ings. The person appointed as a receiver or adminis - trator is either a licensed lawyer or a licensed public accountant who has taken a special course, passed the examination and been registered with the Ministry of Law (a restructuring/insolvency professional). The Receiver The receiver has the following roles, rights and respon - sibilities (in bankruptcy proceedings): • to manage and maximise the bankruptcy estate (eg, collecting claims); • to continue the debtor’s business; • to verify the claims of the creditors (and prepare the list of creditors with their rankings) against the debtor’s book; • to verify the assets of the bankrupt debtor; • to facilitate composition plan discussions and lead the voting process; • to liquidate and settle the bankruptcy estate, if such estate is already in a state of insolvency (eg, through a public auction or private sale); and • to distribute the liquidation proceeds to the credi - tors, in accordance with their rankings under the prevailing laws and regulations.
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