SUSPENSION OF PAYMENT POST-PANDEMIC IN INDONESIA: IS IT SAVING THE UNDERTAKINGS?

Main Article Content

KUKUH LEKSONO SUMINARING ADITYA, WIDHAYANI DIAN PAWESTRI, M. HADI SHUBHAN, TRISADINI PRASASTINAH USANTI

Abstract

The Covid-19 pandemic that hit the whole world had a serious impact on the business climate in Indonesia. Many companies experience cash flow disruptions so that they cannot settle their obligations to their creditors. In Indonesia, suspension of payment basically is an instrument for reconciling debtors upon their obligations to creditors. It was recorded that in March 2020, when Indonesia declared a pandemic emergency status, there was a 42% increase in the application for Suspension of payment at the Central Jakarta Commercial Court. Business actors naturally avoid the bankruptcy process because the impact on their companies will be much more detrimental. This paper attempts to analyze whether the suspension of payment can save the business actors from bankruptcy. Using a normative and conceptual juridical approach, this paper explains that suspension of payment can also be a double-edge sword if the debtor cannot propose a good reconciliation to his creditors.

Article Details

Section
Articles
Author Biography

KUKUH LEKSONO SUMINARING ADITYA, WIDHAYANI DIAN PAWESTRI, M. HADI SHUBHAN, TRISADINI PRASASTINAH USANTI

Kukuh Leksono Suminaring Aditya1, Widhayani Dian Pawestri2, M. Hadi Shubhan3, Trisadini Prasastinah Usanti4

Faculty of Law, Universitas Airlangga, Indonesia1

Faculty of Law, Universitas Airlangga, Indonesia2

Faculty of Law, Universitas Airlangga, Indonesia3

Faculty of Law, Universitas Airlangga, Indonesia4

References

Akbar C, ‘Usulan Moratorium PKPU Dan Kepailitan, Siapa Yang Diuntungkan? - Bisnis Tempo.Co’ (21 August 2018) <https://bisnis.tempo.co/read/1499834/usulan-moratorium-pkpu-dan-kepailitan-siapa-yang-diuntungkan/full&view=ok> accessed 27 September 2021

Brigham EF, Gapenski LC and Daves PR, ‘Intermediate Financial Management’

‘Buku Ketenagakerjaan Dalam Data 2021’ (1 April 2021) <https://satudata.kemnaker.go.id/publikasi> accessed 27 September 2021

‘Cash Flow Test Now Sole Determinant for Company Insolvency | Singapore Business Review’ <https://sbr.com.sg/professional-serviceslegal/news/cash-flow-test-now-sole-determinant-company-insolvency> accessed 29 September 2023

Declercq PJM, ‘Restructuring European Distressed Debt: Netherlands Suspension of Payment Proceeding ... the Netherlands Chapter 11 ’ (2003) 77 American Bankruptcy Law Journal 377 <https://heinonline.org/HOL/P?h=hein.journals/ambank77&i=425>

Hart HLA, Hart HLA and Green L, The Concept of Law (oxford university press 2012)

Hatchondo J and others, ‘Sovereign Cocos and the Reprofiling of Debt Payments’ [2017] Society for Economic Dynamics (1435) 1

Hutchinson T, Researching and Writing in Law (Emma Hutchinson ed, 1th edn, Lawbook Co 2002)

Korobkin DR, ‘Value and Rationality in Bankruptcy Decisionmaking’ (1991) 33 Wm. & Mary L. Rev. 333

Kuruppu N, Laswad F and Oyelere P, ‘The Efficacy of Liquidation and Bankruptcy Prediction Models for Assessing Going Concern’ [2003] Managerial auditing journal

Lukman E, ‘Telkomsel Declared Bankrupt!’ (14 September 2012) <https://www.techinasia.com/telkomsel-bankrupt> accessed 27 July 2021

Mahmudah S, Badriyah SM and Rahmanda B, ‘THE POSITION OF THE GUARANTOR IN RECONCILIATION ON THE BANKRUPTCY ACT ACCORDING TO THE LAW OF BANKRUPTCY IN INDONESIA’ 3 Diponegoro Law Review 243

Mandala S, ‘INDONESIAN BANKRUPTCY LAW: AN UPDATE’ [2006] Legal & Institutional Reforms of Asian Insolvency Systems <https://www.oecd.org/indonesia/38184160.pdf> accessed 27 July 2021

Min LJ and Nordin R, ‘Debtor Protection Within Bankruptcy Proceeding in Malaysia and Singapore: A Comparative Analysis’ Rahmah Ismail 162

Munir Fuady SH, Hukum Bisnis Dalam Teori Dan Praktek Buku Ketiga, vol 3 (Citra Aditya Bakti 2018)

Newby E, ‘The Suspension of Cash Payments as a Monetary Regime’ (CENTRE FOR DYNAMIC MACROECONOMIC ANALYSIS WORKING PAPER SERIES 2007)

Obrenovic B and others, ‘Sustaining Enterprise Operations and Productivity during the COVID-19 Pandemic:“Enterprise Effectiveness and Sustainability Model”’ (2020) 12 Sustainability 5981

Rahmadiyanti RA, ‘AKIBAT HUKUM PENOLAKAN RENCANA PERDAMAIAN DEBITOR OLEH KREDITOR DALAM PROSES PENUNDAAN KEWAJIBAN PEMBAYARAN UTANG’ 8 Notarius 252

‘Sekretariat Kabinet Republik Indonesia | Gov’t Declares End of COVID-19 Pandemic’ <https://setkab.go.id/en/govt-declares-end-of-covid-19-pandemic/> accessed 30 September 2023

Sjahdeini SR, Sejarah, Asas, Dan Teori Hukum Kepailitan (Memahami Undang-Undang No. 37 Tahun 2004 Tentang Kepailitan Dan Penundaan Kewajiban Pembayaran) (1st edn, Kencana 2016)

‘Statistik Fintech Lending Periode Juni 2021’ (4 August 2021) <https://www.ojk.go.id/id/kanal/iknb/data-dan-statistik/fintech/Pages/Statistik-Fintech-Lending-Periode-Juni-2021.aspx> accessed 27 September 2021

Summers RS, ‘Professor HLA Hart’s Concept of Law’ [1963] Duke LJ 629

Sung H-E, ‘State Failure, Economic Failure, and Predatory Organized Crime: A Comparative Analysis’ (2004) 41 Journal of Research in Crime and Delinquency 111

Surjanto D, ‘Urgensi Pengaturan Syarat Insolvensi Dalam Undang-Undang Kepailitan Dan Penundaan Kewajiban Pembayaran Utang’ (2018) 3 Denpasar: Acta Comitas Jurnal Hukum Kenotariatan

Uly YA, ‘Pemerintah Diminta Hati-Hati Kaji Wacana Moratorium PKPU Dan Kepailitan Halaman All - Kompas.Com’ (26 August 2021) <https://money.kompas.com/read/2021/08/26/164443926/pemerintah-diminta-hati-hati-kaji-wacana-moratorium-pkpu-dan-kepailitan?page=all> accessed 27 September 2021

Wahyuni S and Ikasari N, ‘Unveiling The Impact of Covid-19 And The Policy Implications On Unveiling The Impact of Covid-19 And The Policy Implications On Indonesian Small Businesses: Where Do They Hurt The Most? Indonesian Small Businesses: Where Do They Hurt The Most?’ (2022) 29 1 <https://scholarhub.ui.ac.id/jbb/vol29/iss1/5> accessed 29 September 2023

‘What Does the Curator Do in a Bankruptcy? | Business.Gov.Nl’ <https://business.gov.nl/ending-your-business/financial-problems-and-bankruptcy/what-does-the-curator-do-in-a-bankruptcy/> accessed 29 September 2023

White MJ, ‘Corporate and Personal Bankruptcy Law’ (2011) 7 Annual Review of Law and Social Science 139