Proceedings of the 2nd International Conference on Law Reform (INCLAR 2021)

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Government Policy in Settlement of Bankruptcy Applications and Postponement of Debt Payment Obligations in the Covid-19 Pandemic Crisis in Indonesia

Authors
Ismail Rumadan1, *, Pri Pambudi Teguh2, Chandra Yusuf3
1Researcher at the Indonesian Supreme Court Law and Judicial Research Center, Indonesia
2Lecturer at the Faculty of Law (National University), Jakarta, Indonesia
3Lecturer at the Master Program in Notary Affairs (YASRI University), Jakarta, Indonesia
*Corresponding E-mail: ismailrdhan@gmail.com
Corresponding Author
Ismail Rumadan
Available Online 22 November 2021.
DOI
10.2991/assehr.k.211102.160How to use a DOI?
Keywords
Bankruptcy; Postponement of Debt Payment Obligations; Covid 19 pandemic
Abstract

The Coronavirus Disease of 2019 (Covid 19) outbreak has had a serious impact on the Indonesian economy, minus economic growth, the lowest inflation rate in 2020 in Indonesian history, the weakening Rupiah exchange rate, the number of unemployed increases. This kind of condition has a major impact on the company’s financial condition, and companies with debts that are past due are threatened with default. As a result, many debtor companies are filed for bankruptcy by the Commercial Court, and most of the companies that are filed for bankruptcy and Debt Payment Obligation Postponement (PKPU) are threatened bankruptcy because the conditions for imposing bankruptcy PKPU are very easy. The government does not have the right formula to save companies that are threatened with bankruptcy. Studied more deeply, the inability to repay creditors’ debts is not an intentional factor due to force majeure. Therefore, judges who examine and decide on bankruptcy applications and PKPU should consider the financial capability of a debtor company filed for bankruptcy so that companies that are still solvent can continue their business.

Copyright
© 2021 The Authors. Published by Atlantis Press SARL.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2nd International Conference on Law Reform (INCLAR 2021)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
22 November 2021
ISBN
10.2991/assehr.k.211102.160
ISSN
2352-5398
DOI
10.2991/assehr.k.211102.160How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press SARL.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

risenwbib
TY  - CONF
AU  - Ismail Rumadan
AU  - Pri Pambudi Teguh
AU  - Chandra Yusuf
PY  - 2021
DA  - 2021/11/22
TI  - Government Policy in Settlement of Bankruptcy Applications and Postponement of Debt Payment Obligations in the Covid-19 Pandemic Crisis in Indonesia
BT  - Proceedings of the 2nd International Conference on Law Reform (INCLAR 2021)
PB  - Atlantis Press
SP  - 18
EP  - 23
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.211102.160
DO  - 10.2991/assehr.k.211102.160
ID  - Rumadan2021
ER  -