Definition of Bankruptcy

According to act no.37/2004 concerning bankruptcy and postphonement 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 firs known thorough the regulations of the commercial code (KUHDagang) during the Dutch East Indies era, namely Wet Boek van Kopenhandel (W.v.K) in the third book Van de Voorzeieningen in geval van onvermogen van kooplieden im article 749 WvK to article 910 WvK especially for traders (Entrepreneurs).

For non-traders (non-entrepeneurs), it is regulated by the Reglement op de Rechtsverordening (RV) (S. 1847-50 Jo. 1849-63) in the third book, seventh chapter entitled van kennelijk onvermogen in article 899 to 915.

Next, the Faillisment Veredening (S. 1905-217) was promulgated, which in full was called Verordening op het Faillisment en de Surseance van betaling voor de europeanen in Nederlands Indie (Regulation for Bankrupcty and Postphonement of Payments for europeans). Based on the Verordening ter invoering van de Faillismenys verordening (S. 1906-348) and Failsments Verordening (S.1905-217), then starting from 1 november 1906 :

a. Book III of the trade code does not apply.

b. Reglement op de Rechtsvordering (RV) (S. 1847-53 jo1849-63) in the third book, seventh chapter entitled van kennelijk onvermogen in articles 899 to article 915.

After in Indonesia became independent, based on the provision of artiocle II of the 195 constitutional transitional regulations Faillisments Verordening (S. 1905-217) were still in use until the issuance of Perpu No. 1/1998 concerning amandementsto the act of bankruptcy (Perpu Bankruptcy) on 22th april 1998.

On 9th september 1998, perpu no. 1/1998 was submitted to the House of Representatives (DPR-RI) and enacted as Act no. 4/1998.

Furthemore, bankrupcty law in Indonesia is regulated by Act No. 37/2004 concerningBankruptcy and Postphonemnet of Debt Paymeny obligations.

Commercial Courts in Indonesia

Bankruptcy law in Indonesia currently one of settlemet instrument that often used by many individuals and/or legal entities, both domestic and foreign, for receivecables and debts.

In Indonesia, the resolution of bankruptcy disputes is submitted to commercial court which is in the District court, but not all regions have, Medan is the only commercial court in Sumatera.

The other is located in Java Island : Central Jakarta Commercial Court, Surabaya Commercial Court, Semarang Commercial Court In Sulawesi island : Makasar Commercial Court

Based on the provisions of article 2 and 5 of Presidential decree of the Republic of Indonesia No. 97/1999, the jurisdiction of commercial courts is as follows :

a. The Medan Commercial Court covers the Province of North Sumatera, Riau, West Sumatera, Bengkulu, Jambi and Aceh.

b. The Central Jakarta Commercial Court Covers the Provinces Jakarta, West Java, South Sumatera, Lampung And West Kalimantan.

c. The Semarang Commercial Court covers the Provinces Of Central Java And Yogyakarta

d. The Surabaya Commercial Court covers the provinces East Java, South Kalimantan, Central Kalimantan, East Kalimantan, Bali, East Nusa Tenggara and West Nusa Tenggara.

e. The Makasar Commercial Court covers the provinces of south sulawesi, southeast Sulawesi, Central Sulawesi, North Sulawesi, Maluku and Papua.