The Indonesian Supreme Court has reinstated the right of secured creditors to file a bankruptcy and suspension of payment (Penundaan Kewajiban Pembayaran Utang or PKPU) process.
The Indonesian Supreme Court had in January 2020 issued guidance that a PKPU petition can only be initiated by the debtor or an unsecured creditor of the debtor, but notably not by a secured creditor of the debtor. The Indonesian Supreme Court on 29 April 2020 revoked the original guidance and issued revised guidance in respect of the resolution of bankruptcies and PKPU cases1. In a welcome change the revised guidance does not limit secured creditors initiating a PKPU petition.
1 Decree of Chairman of Supreme Court No. 109/KMA/SK/IV/2020 TAHUN 2020 dated 29 April 2020 on Guidance on Settlement of Case of Bankruptcy and Suspension of Payment.
Yoshivan Immanuel (White & Case, Associate, Jakarta) contributed to the development of this publication