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