MA Finalizes Raperma on Disputes of Bank and Insurance Liquidation

The Supreme Court (“ MA ”) is finalizing the Draft Regulation of the Supreme Court (“ Raperma ”) on Guidelines for the Resolution of Disputes of Banks and Insurance Companies in Liquidation and Post-Liquidation Proceedings before the Commercial Court. This effort is undertaken to end the duality of judicial forums that has so far hindered the efficiency of asset recovery.

The Chair of the Civil Chamber of MA, I Gusti Agung Sumanatha, emphasized that the resolution of commercial disputes must be conducted in the Commercial Court. Since the issuance of Law No. 24 of 2004 on Deposit Insurance Corporation (“ LPS ”), as amended by Law No. 1 of 2026 on Penal Adjustments (collectively referred to as “ Law 24/200 ”), practice in the field has shown that liquidation disputes are still frequently brought before District Courts or Religious Courts for sharia banking matters.

“This simplified case resolution model is encouraged because the legal subjects are already certain, namely the depositor as the plaintiff and the LPS as the defendant. In addition, the object is also specific, namely the claims for payable deposits,” Sumanatha stated to Hukumonline.

Going forward, MA will categorize disputes into three main clusters to facilitate the litigation process: Banks in Liquidation, Banks Post-Liquidation, and Deposit Insurance Disputes, which involve disputes between depositors and the LPS. This Raperma will also serve as a legal basis for the insurance sector, in line with the mandate of Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (P2SK Law) regarding the resolution of insurance liquidation disputes under the authority of the Commercial Court starting in 2028.

“The process is currently still being finalized and is targeted for issuance this year,” he added.