Indonesia

Author: | Published: 1 Jun 2005
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BT Partnership

Address

Jakarta

Telephone

+62 21 5700 777

Fax

+62 21 5700 877

Under Indonesian bankruptcy law (Law 37 of 2004 on Bankruptcy and Suspension of Debt Repayment) the creditors of a bankrupt debtor are required to meet in a creditors meeting. Within 30 days after the bankruptcy is declared, the supervisory judge determines the date, time and place for the first creditors meeting. The agenda will include debt verification and voting on the composition plan that has been submitted by the bankrupt debtor.

Unless specifically provided in the Bankruptcy Law, resolutions in the creditors meeting require approval of more than one half of all votes cast by creditors or their proxies in the meeting.

The Government Regulation 10 of 2005 (GR 10/2005) provides that creditors with a claim up to Rp10 million are entitled to one vote. Creditors with a claim of more than Rp10 million are entitled to one additional vote for each multiple of Rp10 million. If the remaining claim is less than the multiple of Rp10 million, the vote will be calculated as follows:

  • for claims less than Rp5 million, the creditor is not entitled to an additional voting right;
  • for claims of Rp5 million or more, the creditor is entitled to one additional voting right.

Unlike its predecessor, GR 10/2005 does not have a specific provision for creditors with claims in currencies other than rupiah. The predecessor (that is, Government Regulation 80 of 1998) stated that, when the creditor has a claim in currencies other than rupiah, for the purpose of calculating voting rights, their claim would be converted into rupiah by using the prevailing official exchange rate on the day the bankruptcy declaration was announced.

Satrya Wijaya Teja and Tyana Asri Martianti