Proposed RUU on Bankruptcy and PKPU Aligned with the RUU on Consumer Protection

The National Consumer Protection Agency (“ BPKN ”) has proposed a revision to Law No. 37 of 2004 on Bankruptcy and Suspension of Debt Payment Obligations (“ PKPU ”). The reason is that the provisions in this legislation are considered to still hinder the process of recovery and the restitution of consumer rights, particularly in the context of consumer protection

“BPKN is advocating for a revision of Law 37/2004 because there are still several provisions that need to be revised,” said the Vice Chairman of BPKN, Syaiful Ahmar, to Hukumonline

The push for revision arose after BPKN identified various issues in several cases of failure to fulfill consumer rights in the property sector, particularly due to stalled projects. According to Syaiful, the revision of Law 37/2004 needs to more proportionally consider the position of certain creditors, especially consumers who have suffered losses.

Furthermore, Syaiful emphasized that the revision process of the Bankruptcy Law also needs to be harmonized with the Draft Bill on Consumer Protection (“ RUU PK ”), which is currently underway.

“The revision of Law 37/2004 needs to be aligned with the RUU PK,” he added