Definition of Bankruptcy
According to law no. 37 of 2004 concerning bankruptcy and postponement of debt payment obligations. Bankruptcy is a general confiscation of all assets of the Bankrupt Debtor, the management and settlement of which is carried out by the Curator under the supervision of the Supervisory Judge as regulated in the Bankruptcy Law.
History of Bankruptcy Law in Indonesia
Bankruptcy was first known in Indonesia through the regulations of the Commercial Code (KUHdagang) during the Dutch East Indies era, namely Wet Boek van Koophandel (W.v.K) in the third book Van de Voorzieningen in geval van onvermogen van kooplieden in Article 749 WVK to Article 910 WVK especially for traders (Entrepreneurs).
For non-traders (entrepreneurs), it is regulated by the Reglement op de Rechtsvordering (RV) (S.1847-52 JO. 1849-63) in the third book, seventh chapter entitled van kennelijk onvermogen in Articles 899 to Article 915.
Next, the Faillisments Verordening (S.1905-217) was promulgated, which in full was called Verordeing op het Faillisement en de Surseance van Betaling voor de Europeanen in Nederlans Indie (Regulation for Bankruptcy and Postponement of Payments for Europeans). Based on the Verordening ter invoering van de Faillissements verordening (S. 1906-348) and Faillisments Verordening (S. 1905-217), then starting from November 1 1906:
a. Book III of the Trade Code does not apply
b. Reglement op de Rechtsvordering (RV) (S.1847-52 JO. 1849-63) in the third book, seventh chapter entitled van kennelijk onvermogen in Articles 899 to Article 915.
After Indonesia became independent, based on the provisions of Article II of the 1945 Constitutional Transitional Regulations, the Dutch East Indies bankruptcy regulations (Faillisments Verordening (S.1905-217)) were still in use until the issuance of Perpu No. 1 of 1998 concerning Amendments to the Law on Bankruptcy (Perpu Bankruptcy) on 22th April 1998.
On 9th September 1998, Perpu number 1 year 1998 was submitted to the House of Representatives of Republic of Indonesia (DPR-RI) and enacted as Act number 4/1998.
Furthermore, bankruptcy law in Indonesia is regulated by Act number 37/2004 concerning Bankruptcy and Postponement of Debt Payment Obligations.
Commercial Courts in Indonesia
Bankruptcy law in Indonesia is currently one of the settlement instruments that is often used by many individuals and/or legal entities, both domestic and foreign, for receivables and debts. In Indonesia, the resolution of bankruptcy disputes is submitted to the Commercial Court which is in the District Court but not all regions have, only five Commercial Courts in Indonesia, namely the Central Jakarta Commercial Court, Surabaya Commercial Court, Semarang Commercial Court, Medan Commercial Court and Makasar Commercial Court .
Based on the provisions of Articles 2 and 5 of Presidential Decree of the Republic of Indonesia no. 97 of 1999, the jurisdiction of commercial courts is as follows:
a. The Central Jakarta Commercial Court covers DKI Jakarta, West Java Province, South Sumatra, Lampung and West Kalimantan
b. The Surabaya Commercial Court covers the provinces of East Java, South Kalimantan, Central Kalimantan, East Kalimantan, Bali, East Nusa Tenggara, West Nusa Tenggara
c. The Semarang Commercial Court covers the provinces of Central Java and DI Yogyakarta
d. The Medan Commercial Court covers the provinces of North Sumatra, Riau, West Sumatra, Bengkulu, Jambi and Aceh
e. The Ujung Pandang Commercial Court covers the provinces of South Sulawesi, Southeast Sulawesi, Central Sulawesi, North Sulawesi, Maluku and Papua.
