On 29 December 2023, the Supreme Court has issued a Circular Letter (SEMA) No. 3 of 2023. On one of its sections, civil law formulation, it is stated that the bankruptcy or PKPU application over the developer of an apartment and/or condominium (rumah susun) does not qualify as simple evidentiary process (pembuktian sederhana) in accordance with the Law No. 37 of 204 on Bankruptcy and Suspension of Debt Payment Obligation.
Our firm recently represented a condominium developer in BSD City, over an application of PKPU lodged by a joint operation of contractors. In our first response, we argued that the application must be rejected due to the rulings in the SEMA No. 3/2023. On the decision day, 25 April 2024, the panel of judges then rejected that application since it is proven that the respondent, our client, is a condominium developer. This is most probably the first case after SEMA No. 3/2023. The decision proves that the judges comply with the SEMA ruling. Thus, we notify all our clients and non clients as condominium developers to note this important information.
