Suspension of Debt Payment Aims to Save Businesses From Bankruptcy – Wed Dec 8, 2021

James Purba (The Jakarta Post)


Jakarta ●
Wed, December 8, 2021

As the impact of the protracted COVID-19 pandemic worsens, more and more businesses are starting to feel the bite. According to the Indonesian Employers’ Association (Apindo), up to 1,298 companies have failed to pay their creditors, who, like other companies, need the money themselves to pay their own debts. .

As the borrowers were unable to pay their debts, the creditors turned to the courts to recover what they could. The mechanism for doing this is to file a Debt Payment Suspension (PKPU) motion.

There is a popular but mistaken notion that filing for PKPU is like trying to file a business with Iowa bankruptcy “}” data-sheets-userformat=”{“2″:513,”3”:{“1″:0},”12″:0}”>Iowa bankruptcy . This is far from being the truth or the spirit of PKPU. It is not in the best interests of the creditor to put the debtor in bankruptcy, as the creditor would then be able to recover only a small part of what was owed to him, as the borrower would be required to sell all of his assets at prices defying all competition.

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