Homologation of Debt Payment Suspension from the Perspective of Pancasila Legal Theory of Justice

DOI

10.2991/978-2-38476-529-4_10How to use a DOI?

Keywords

Homologation of PKPU; Pancasila Legal Theory; Justice

Abstract

The Suspension of Debt Payment Obligations (Penundaan Kewajiban Pembayaran Utang or “PKPU”) under Indonesian law is a legal instrument designed to prevent bankruptcy through court-supervised settlement between debtors and creditors. In practice, PKPU provides space for debtors to formulate a plan for gradual or partial debt repayment, including debt restructuring, in order to maintain business continuity. This study employs a normative juridical method, with a primary emphasis on secondary data, encompassing primary, secondary, and tertiary legal materials. The findings indicate that the success of settlement agreements within PKPU has not only economic implications, such as preserving employment and contributing to national development, but also significant social value. Conversely, failure in executing the settlement agreement may result in a declaration of bankruptcy and liquidation of the assets of the debtor. Through a progressive legal approach grounded in the values of Pancasila as the ultimate source of Indonesian national law, PKPU reflects a legal effort oriented toward justice and humanity. A successful PKPU will be closed with homologation of the settlement agreement, which is the legal ratification of a debt settlement plan agreed upon by the debtor and creditors during the PKPU process. Homologation is the legal ratification of a debt settlement plan agreed upon by the debtor and creditors during the PKPU process. This research highlights the dynamics of PKPU homologation, including the homologation process, legal consequences of settlement cancellation, and the role of shareholders in facing the impacts of restructuring and bankruptcy. As the ideological foundation of the state, Pancasila plays a central role in realizing humane and comprehensive legal justice. By applying a rational, coherent, and systematic philosophical approach to Pancasila, the homologation mechanism within PKPU must be examined to determine whether it reflects the substantive justice values idealized by Pancasila. Therefore, this study aims to examine the homologation mechanism of PKPU from the perspective of Pancasila’s justice-oriented legal theory.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Pita Permatasari
PY  - 2025
DA  - 2025/12/28
TI  - Homologation of Debt Payment Suspension from the Perspective of Pancasila Legal Theory of Justice
BT  - Proceedings of the International Conference on Democracy and National Resilience 2025 (ICDNR 2025)
PB  - Atlantis Press
SP  - 109
EP  - 120
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-529-4_10
DO  - 10.2991/978-2-38476-529-4_10
ID  - Permatasari2025
ER  -