Indonesia: Insolvency and court-supervised restructuring

Indonesia's bankruptcy law, Law 37 of 2004 (BRL), provides mechanisms for restructuring and liquidation supervised by one of Indonesia's commercial courts. Although an Indonesian debtor may enter into a private workout with some or all of its creditors without the supervision of a court, the focus here is on court-supervised mechanisms.

Bankruptcy proceedings Bankruptcy and requirements for an actionable claim Bankruptcy is the general statutory attachment of all of a debtor's assets (the bankruptcy estate) established by a declaration of bankruptcy by the court, whereby such assets are placed under the management of a curator (roughly equivalent to a receiver in common law jurisdictions), as supervised by a supervisory judge, for the benefit of the debtor's creditors. The requirements for a declaration of bankruptcy are prima facie evidence that the subject debtor has two or more creditors and has failed to pay at least one debt that has become due (or otherwise...