New Regulation for Receivers and Administrators Fees

The Minister of Law and Human Rights (“Minister”) has issued Regulation No. 11 of 2016 on Guidelines for Determining Fees for Receivers and Administrators (“2016 Regulation”).In essence, the 2016 Regulation redefines the amounts and the procedures for determining fees for the receivers and administrators responsible for the management of debtors’ assets during bankruptcy or the postponement of a debt-payment trial, as mandated in Articles 76 and 234 (5) of Law No. 37 of 2004 on Bankruptcy and Postponement of Debt Payment Obligations (“Bankruptcy Law”).Prior to the regulation, such fees were stipulated under Ministry Regulation No. 1 of 2013 on Guidelines for Determining Fees for Bankruptcy Receivers and Administrators, as amended by Ministry Regulation No. 23 of 2014 (“2013 Regulation”).The 2016 Regulation is of relevance to receivers and administrators, as well as to the Center for the Management of Abandoned and Unclaimable Assets (Balai Harta Peninggalan –“BHP”), and debtors and creditors who are involved in bankruptcy cases.Bankruptcy Receiver FeesIn bankruptcy cases, an application can be submitted to the commercial court either by a creditor or by a debtor. The court will then render a bankruptcy decision if a debtor has two or more creditors and has failed to pay the debt in question by the maturity date. [1] In the making of any decision, the commercial court will also appoint a receiver in order to manage and execute a debtor’s assets. [2] Any bankruptcy decision made by the commercial court may result in one of the following outcomes: