The Mechanism of Suspension of Debt Payment Obligations (PKPU) in the Indonesian Bankruptcy Law During the Covid-19 Pandemic
- DOI
- 10.2991/assehr.k.211102.162How to use a DOI?
- Keywords
- Debt Restructuring; PKPU; Indonesian Bankruptcy Law
- Abstract
This study aims to find out and analyze why the mechanism for Postponing Debt Payment Obligations (PKPU) has increased during the Covid-19 pandemic. The research method that the researcher uses is a normative research method by examining the laws and regulations and related legal materials. Due to the Covid-19 pandemic that hit Indonesia, the application for PKPU through the Commercial Court experienced a very significant increase. This shows that currently the option of settling debt default cases, the mechanism for Delaying Debt Payment Obligations (debt restructuring through the Commercial Court) is considered more effective than filing for bankruptcy. The PKPU mechanism in practice is a good solution, not only for debtors to avoid bankruptcy, but also socially and economically a solution for employees and other stakeholders. However, the fact is that there are many PKPU mechanisms that are often used as an effort to bankrupt debtors more quickly. Therefore, it is necessary to have a debt restructuring mechanism through the PKPU in the Indonesian Bankruptcy Law that is more effective so as to provide legal certainty and justice for all parties.
- Copyright
- © 2021 The Authors. Published by Atlantis Press SARL.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Krista Yitawati AU - Adi Sulistiyono AU - Pujiyono PY - 2021 DA - 2021/11/22 TI - The Mechanism of Suspension of Debt Payment Obligations (PKPU) in the Indonesian Bankruptcy Law During the Covid-19 Pandemic BT - Proceedings of the 2nd International Conference on Law Reform (INCLAR 2021) PB - Atlantis Press SP - 28 EP - 32 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.211102.162 DO - 10.2991/assehr.k.211102.162 ID - Yitawati2021 ER -