Biotika (Dec 2023)
LEGAL ANALYSIS OF BANKRUPTCY IN INDONESIA: LIMITED LIABILITY COMPANIES
Abstract
In general, 2 (two) areas of law—civil and criminal—are used to regulate the Limited Company's liability as a bankrupt debtor. These laws are Law Number 40 Year 2007 about Limited Company and Law Number 37 Year 2004 about Bankruptcy and the Postponement of Debt Payment Obligations. In the Limited Company's bankruptcy settlement, these two laws are inextricably linked. From a civil perspective, if the Limited Company's debt is less than its assets, the entire debt may be returned to the creditors to allow for the company to undergo rehabilitation. However, if the debt exceeds its assets, it is undoubtedly not possible to return the entire debt to the creditors in order to allow the curator to dissolve the business through liquidation. Regarding the criminal side, the corporate organs, the Board of Directors and the Commissioners, may face jail time as a form of liability. The issue raised in this study is that Multiple or Separate-Editors are not yet protected by law in the event that a company is declared bankrupt and unable to pay its debts in full, which could reflect Justice Value. This study employed a juridical-empirical research methodology, utilizing a sociological juridical approach (Socio-Legal Approach) in qualitative research. The study's findings suggest that the priority in getting their accounts repaid at this time belongs to the separate creditors in the company's bankruptcy.
