Jakarta, April 2022. Our CEO of Leks&Co, Eddy Leks writes an article titled “New Ruling on Postponement of Debt Payment Obligation” as published in the Legal View section in Forbes Indonesia magazine April 2022 edition.
The postponement of debt payment obligations (PKPU) is a means to restructure the debts or obligations by a debtor over their creditors. Under the old 1998 law, the provision of a PKPU application was initially given for a debtor only, but was later replaced under the 2004 law to give the right to either a debtor or a creditor. Theser PKPU provisions are stipulated under one law along with bankruptcy provisions, namely bankruptcy and postponement of the debt payment obligation of 2004.
On 1 December 2021, the Constitutional Court issued a ruling over the judicial review of three provisions under the law. The court partially admitted the claim and declared that two of the provisions of the bankruptcy law violate the Constitution of 1945 and have no binding power if it is not construed as “a cassation remedy is allowed over a decision of Postponement of Debt Payment Obligation submitted by the creditor and when the settlement proposal of a debtor is declined.” This means that a PKPU decision by the first-stage court may be challenged through a cassation petition. That was not permissible before the ruling of December 2021.
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