INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Ulyarta Naibaho and Bilal Anwari, ABNR Counsellors at Law
The Administrator The administrator has the following roles, rights and responsibilities (in PKPU proceedings): • to manage the debtor’s estate and continue the debtor’s business, together with the director of the debtor; • to verify the claims of the creditors (and prepare a list of creditors, along with their rankings) against the debtor’s book; • to verify the assets of the debtor; and • to facilitate the composition plan discussions and lead the voting process. The receiver and administrator report their tasks to the supervisory judge and the commercial court. The commercial court may nominate a restructuring/ insolvency professional as administrator or receiver based on a proposal from the petitioner, or at its own discretion. The commercial court may reject the nomi - nated officers if they are not independent, have a con - flict of interest or are handling three or more cases at the same time. Alternatively, officers of the Inheritance Agency ( Balai Harta Peninggalan , or BHP – a state trustee) will be appointed. The commercial court may replace an appointed receiver/administrator based on: • the proposal of the supervisory judge; • the creditor’s application, approved by more than half of all the creditors present at the creditors’ meeting; • the receiver/administrator’s application; • another receiver/administrator’s application, if any; or • the bankrupt debtor’s application (for the receiver). The Supervisory Judge The supervisory judge has the following roles and responsibilities (in bankruptcy and PKPU proceed - ings): • to oversee the receiver or administrator in carrying out their duties;
• to authorise specific actions of the receiver as mandated by the IBL, such as the private sale of the bankrupt estate; and • to resolve disputes regarding claim verification for the purpose of voting on the composition plan. The supervisory judge is appointed by the commercial court in the bankruptcy decision or the PKPU deci - sion. The Liquidator In the context of D&L proceedings, the liquidator has the following roles, rights and responsibilities: • to record and gather the company’s assets and liabilities; • to make the announcement concerning the plan for the distribution of assets/proceeds resulting from the liquidation process in the daily newspaper and state gazette of the Republic of Indonesia; • to make payment to creditors; • to make payment of the remaining balance of the assets resulting from the liquidation process to the shareholders; and • to perform other actions required to implement the settlement of the company’s assets. The liquidator reports to either the General Meeting of Shareholders or the district court that appoints them. 2. Creditors 2.1 Types of Creditors Preferred Claims There are several types of preferred claims. Preferred claims that rank higher than secured claims Preferred claims that rank higher than secured claims will need to be paid from the bankruptcy estate, including but not limited to the assets of the debtor that have been encumbered by in rem security rights (in the form of mortgage, pledges, hypothec, fiduci - ary security) being held by the secured claims, ahead of the unsecured claims. These include the following.
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