Draft Bill on the Amendment to Bankruptcy Proceedings and the Suspension of Debt Payment Obligations

The government is currently drafting an amendment (“ Draft Amendment ”) to Law No. 37 of 2004 (“ Law 37/2004 ”) on Bankruptcy Proceedings and the Suspension of Debt Payment Obligations (Penundaan Kewajiban Pembayaran Utang– “ PKPU ”), which it hopes will resolve a number of ongoing issues that relate to the implementation of Law 37/2004, such as settlement periods, costs, recovery from bankruptcy and adjustments that reflect various legal issues and developments. [1] Due to the wide scope of the Draft Amendment, this analysis will only address the various changes that relate to bankruptcy and compare them with the prevailing framework of Law 37/2004. Our discussion has been divided into the following three sections: 1) Requirements and decisions; 2) Consequences; 3) Management of Assets.