Bankruptcy Law and Suspension of Payment

SSEK Unofficial Translation
December 2005

LAW NUMBER 37 OF 2004
REGARDING
BANKRUPTCY AND SUSPENSION OF DEBT REPAYMENTS
(October 18, 2004)

WITH THE BLESSING OF THE GOD ALMIGHTY

Considering : a. whereas the national law development in the framework of creating fair and
prosperous society based on Pancasila and the 1945 Constitution of the
Republic of Indonesia must be able to support and assure the certainty, order,
enforcement and protection of law based on justice and truth;

b. whereas with the fast growing of economy and trade, there shall be many issues
arises with regard to debts occurred in the public;

c. whereas economic crisis occurred in Indonesia has resulted in an impact which
suffered national economic therefore caused enormous difficulties to the
business community in settling their debt in order to continue their activities;

d. whereas as one of the law facility for debt settlement, a large part of the material
of the Law on the Bankruptcy (Faillissements-verordening, Staatsblad 1905:217
juncto Staatsblad 1906:348) are no longer suitable to the development and the
society need of law and therefore has been amended by Government
Regulation in Lieu of Law Number 1 of 1998 regarding the Amendment to the
Bankruptcy Law, which are then stipulated into Law based on Law Number 4 of
1998, however such amendment was not sufficient for the development and the
society need of law;

e. whereas based on consideration as set forth in point a, point b, point c and point
d, it is required to form a new Law on Bankruptcy and the Suspension of Debt
Payment.

In View of : 1. Article 1 paragraph (3), Article 5 paragraph (1), Article 20, Article 24, and Article
33 paragraph (4) of the 1945 Constitution of the Republic of Indonesia;

2. The Revised and Updated Reglemen Indonesia (Het Herziene Indonesisch
Reglement, Staatsblad 1926:559 juncto Staatsblad 1941:44);

3. The Reglemen Procedural Law for Region Outside Java and Madura
(Rechtsreglement Buitengewesten, Staatsblad 1927:227);

4. Law Number 14 of 1985 regarding the Supreme Court (State Gazette of
Republic of Indonesia Year 1985 Number 73, Supplement to the State Gazette
of the Republic of Indonesia Number 3316), as amended by Law Number 5 of
2004 regarding Amendment to Law Number 14 of 1985 regarding the Supreme
Court (State Gazette of the Republic of Indonesia Year 2004 Number 34,
Supplement to the State Gazette of the Republic of Indonesia Number 4359);

5. Law Number 2 of 1986 regarding Public Judicature (State Gazette of the
Republic of Indonesia Year 1986 Number 20, Supplement to the State Gazette
Office.06.Law 37-2004 Bankruptcy [final] 1
of the Republic of Indonesia Number 3327), as amended by Law Number 8 of
2004regarding Amendment to Law Number 2 of 1986 regarding Public
Judicature (State Gazette of the Republic of Indonesia Year 2004 Number 34;
Supplement to the State Gazette of the Republic of Indonesia Number 4379);

6. Law Number 4 of 2004 regarding Judiciary Power (State Gazette of the Republic
of Indonesia Year 2004 Number 8; Supplement to the State Gazette of the
Republic of Indonesia Number 4358);

Elucidation:

I. GENERAL

The national law development in the framework of creating fair and prosperous society based on
Pancasila and the 1945 Constitution of the Republic of Indonesia is directed to the realization of
national law system which is conducted by formation of new law, especially law product required to
support the national economic development.

The national law product that guarantees certainty, orderly, security, and the protection of law based
on justice and truth is hoped tp be capable to support the growing and development of national
economic, and to secure and support the result of national economic.

One of the law facilities required in supporting the economic national development is the Law on
bankruptcy including the regulations on the suspension of debt payment which initially regulated in
Law on Bankruptcy (Faillissements-verordening Staatsblad 1905:217 juncto Staatsblad 1906:348).

The development of economic and trade and also the influence of globalization in the business
community currently, and bearing in mind that most of the capital owned by the entrepreneurs in
general, is a loan originated from various sources, whether from bank, capital investment, bond
issuance and other ways allowed, has incurred many issues on the debt settlement in the
community.

Economic crisis that occurred in Asian countries, including Indonesia, since the mid 1997 has
incurred major difficulties towards the national economic and trade. The ability of the business
community to improve their business was disturbed, even to maintain the continuity of business was
also not easy, such matters extremely influence the ability to fulfill the obligation to pay their debts.
Such conditions causes matters to be in sequence; which if not being settled immediately will have
major cause, among others the lost of employment and other social issues.

For the interest of business community in settling debts issues fairly, fastly, openly, and effectively, a
supporting law device is required.

On April 22, 1998, based on Article 22 paragraph (1) of the 1945 Constitution of the Republic of
Indonesia, a Government Regulation in Lieu of Law Number 1 of 1998 regarding the Amendment to
Law on Bankruptcy, which is then stipulated into Law as Law Number 4 of 1998 was issued. The
amendment is implemented because the Law on Bankruptcy (Faillisement-verordening, Staatsblad
1905:217 juncto Staatsblad 1906:348) which is a laws and regulations inherited from the Dutch
government, is no longer in accordance with the needs and law development of the community for
debt settlement.

The amendment to the Law on Bankruptcy as mentioned above was made only by revising, adding,
and deleting provisions which are believed to be no longer in accordance with the needs and law
development in the public, if it is considered from material point of view, it still have several
deficiency and weakness.

The decision on bankruptcy declaration changes the status of an individual to become incompetent
to perform a legal act, to own, and settle his asset after the bankruptcy declaration is pronounce.

The major requirement to able to be declared bankrupt is that a Debtor has to have at least 2 (two)
or more Creditors and has failed to pay at least 1 (one) debt which is due and payable. In this debt
payment arrangement, it concerns to both the interest of the Debtors itself, and the interest of the
Creditors. By the decision of bankruptcy declaration, it is hoped that the bankrupt asset of the Debtor
is used to repay all of the Debtors debts in fair and square and also equal.

The bankruptcy declaration may be submittedby one or moreCreditor, Debtor, or district attorney for
public interest. Bankruptcy does not free a person from his obligations to pay his debts.

There areseveral factors as to why the regulation concerning bankruptcy and suspension debt
payment is required:

First, to prevent disputes in obtaining the bankruptcy asset if at the same time, there are a several
Creditors who collected their receivables from the Debtor.

Second, to prevent any Creditor as the holder of security right of properties which claim their rights
by selling the goods owned by the Debtor without any observance of the Debtors interest or other
Creditors.

Third, to prevent any breach conducted by any of the Creditors or Debtor itself. Such as, Debtor
endeavor to give profit to an individual or several certain Creditor that caused losses to other
Creditor, or an unfair act from the Debtor to steal all of its asset in order to release his obligations
towards the Creditors.

Based on the legal principle as mentioned above, it is require to form a new Law regarding
Bankruptcy and the Suspension of Debt Payment, which is a product of national law, in accordance
with the needs and the law development of the public.

Law on Bankruptcy and Suspension of Debt Payment is based on several principles, among others:

1. Principle of Equilibrium
This Law regulates several provisions as a realization of the principle of equilibrium, which is
on the one side, there is a provision that can prevent the misuse of institution and
bankruptcy institution by dishonest Debtor, while on the other hand there is a provision that
can prevent the misuse of institution and bankruptcy institution by the Creditor which has no
good faith.

2. Principle of Business Continuity
In this Law, there is a provision that allows the prospective Debtors company to keep
running its business.

3. Principle of Justice
In the bankruptcy the principle of justice has a definition, that the provisions concerning
bankruptcy should have fulfill the justice for the parties concerned. This principle of justice is
to prevent the misuse of authorities of the collectors in ensuring the payments on each of the
claim towards the Debtor, without any concerns to other Creditor.

4. Principle of Integration
Principle of Integration in this Law has the definition that the formal law system and material
lawsystem is one wholly unity of the civil law system and national civil procedural law.

The new law on Bankruptcy and Suspension of Debt Payment has a wider scope in norm, material
scope, and the process of debts settlement.

Such wider scope is required because of the development and the need of law in the public, while
the current prevailing provisions are not sufficient to become the law facility to settle debt issues
fairly, fasty, openly, and effectively.

Several principles of the new material in this Law on Bankruptcy and Suspension of Debt Payment ,
among others:

First, in order not to cause various interpretations in this Law, the definition of debt is expressly
constraint. The definition of expiration is also constraint.

Second, the requirements and procedures of the petition for bankruptcy declaration and petition for
suspension of debt payment shall include the granting of definite time reference for resolving a
decision of bankrupt declaration and/or suspension of debt payment .

With the Joint Approval of
THE HOUSE OF REPRESENTATIVE OF THE REPUBLIC OF INDONESIA
and
THE PRESIDENT OF THE REPUBLIC OF INDONESIA

has decided: LAW REGARDING BANKRUPTCY AND THE SUSPENSIONOF DEBT PAYMENT
OBLIGATION.

CHAPTER I
GENERAL PROVISION

Article 1
In this Law what Is meant by:
1. Bankruptcy is a seizure on all of assets of Bankrupt Debtor, the administration and settlement of
which is done by a Receiver under the supervision of the Supervisory Judge as regulated in this
Law.

2. Creditor is a person who has receivables based on contract or by Law, which can be collected before
the court.

3. Debtor is a person who has debts based on an agreement or law which payments can be requested
before the court.

4. Bankrupt Debtor is a debtor who has been declared bankrupt by Court decision.

5. Receiver is a Chancery Court or individual who are appointed by the Court to manage and settle the
asset of the Bankrupt Debtor under the supervision of the Supervisory Judge in accordance with this
Law.

6. Debt is an obligation stated or can be stated in the a cash form Rupiah or foreign currency, directly,
will occur in the near future or contingency, which occur based on an agreement or law, andshall be
fulfilled by the debtor, and if it is not fulfilled will grant rights to the Receiver to acquire the fulfillment
from the debtor asset.

7. Court is a Commercial Court in the public judicature.

8. Supervisory Judge is a judge appointed by the Court in a bankruptcy decision or in a suspension of
debt payment decision.

9. Day is calendar day and if the last day from a period becomes due on Sunday or holidays, shall be
effective on the next day.

10. Due Date is a period calculated, not included the effective day of such period.

11. Everyone is an individual or an entity including legal entity or non-legal entity in the liquidation.

Elucidation of Article 1
Sufficiently clear

CHAPTER II
BANKRUPTCY
First Paragraph
Conditions and Bankruptcy Decision
Article 2

(1) A debtor who has 2 (two) or more Creditors and has failed to pay at least 1 (one) debt which is due
and payable, shall be declared bankrupt by a Court decision, either upon his own petition, or upon a
petition of 1 (one) or more of his creditors.
(2) Petition as set forth in paragraph (1) may also be submitted by the district attorney in the public
interest.
(3) In the event that the Debtor is a bank, a bankruptcy petition may only be submitted by Bank
Indonesia.
(4) In the event that the Debtor is a Securities Company, Stock Exchange, Clearing and Guarantee
Institutions, Depository and Settlement Institution, a bankruptcy petition may only be submitted by
the Capital Market Supervisory Board.
(5) In the event that the debtor is an Insurance Company, Reinsurance Company, Pension Fund, or
Sate-Owned Enterprise operating in the public interest, the bankruptcy petition may only be
submitted by the Minister of Finance.

Elucidation Article 2
Paragraph (1)
Creditor in this paragraph means the unsecured creditor, secured creditor and preferred
creditor. The secured and preferred creditors may file a bankruptcy petition without loosing
the security right that they hold over the Debtors asset and loosing their preference right.

If there are a syndicate creditors, then each of Creditor is as set forth in Article 1 point 2.

Debt that has become due and payable means an obligation to pay debts that has become
due, either because of an agreement, an acceleration of time collection as agreed, sanction
imposition, fine imposed by the competent institution, or court decision, arbitrator, or penal of
arbitrators.

Paragraph (2)
The district attorney may file a bankruptcy petition based on the reasons for public interest, if
the requirements as set forth in Article 2 paragraph (1) has been met and there are no
parties filing a bankruptcy petition.

Public interest means the state and national interest and/or public interest, such as:
a. The Debtor fled;
b. The Debtor embezzled part of the bankruptcy asset;
c. Debtor has debts to the State-Owned Enterprise or other business entity who
collects funds from the public;
d. Debtors has debts from the public fund collector;
e. Debtor has no good faith or is not cooperative in settling its debt which has become
due; or
f. In other matters according to the district attorney it represents a public interest.

The terms to file a bankruptcy petition is similar to the bankruptcy petition filed by the
Debtors or Creditors, provided that the bankruptcy petition may be filed by the district
attorney without employing advocate service.

Paragraph (3)
Bank means bank as regulated in the laws and regulations. The submission of bankruptcy
petition for banks is entirely the authority of Bank Indonesia and merely based on the entire
assessment of financial condition and banking condition, therefore it is not require to be
accounted for. The authority of Bank Indonesia to file a bankruptcy petition does not nullify
the authority of Bank Indonesia related to the revocation of bank permit, dissolution of legal
entities, and bank liquidation in accordance with the prevailing laws and regulations.

Paragraph (4)
Bankruptcy petition as set forth in this paragraph may only be filed by the Capital Market
Supervisory Board, since that such institution conducted activities connected to the public
fund, which are invested in the securities under the supervision of the Capital Market
Supervisory Board.

The Capital Market Supervisory Board also has full authority in filing bankruptcy petition to
institutions under the its supervision, such as the authority of Bank Indonesia towards bank.

Paragraph (5)
Insurance Company means Life Insurance Company and Loss Insurance Company.

Insurance Company and Reinsurance Company is Insurance Company and Reinsurance
Company as set forth in the Laws regulating Insurance Business.

The authority to file a bankruptcy petition for Insurance Company and Reinsurance
Company entirely stands at the Minister of Finance. This provision is required to built public
level of trust towards Insurance Company and Reinsurance Company as an institution that
manages risk as well as manages public fund having strategic position in the development
and economic system.

Pension Fund means Pension Fund as set forth in Law regulating the Pension Fund.

The authority to file bankruptcy for Pension Fund entirely stands at the Minister of Finance.
This provisions is required to built public level of trust towards Pension Fund, considering
that Pension Fund manages public fund in large amount and such fund represents the rights
of the numerous members.

State-Owned Enterprise operating in the public interest means a state-owned enterprise,
the entire capital of which is owned by the state and are not divided into shares.

The authority of the Minister of Finance in filing bankruptcy petition for institutions under his
supervision is the same as the authority of Bank Indonesia as set forth in paragraph (3) and
the Capital Market Supervisory Board as set forth in paragraph (4).

Article 3

(1) Decision of the bankruptcy petition and other related matters in connection therewith and/or
regulated under this Law shall be decided by a Court having jurisdiction over the region in which the
domicile of the Debtor is located.

(2) In the event that the Debtor has left the territory of the Republic of Indonesia, the Court competent in
rendering a decision on the bankruptcy petition is the Court having jurisdiction over the region where
the lastest domicile of the debtor was located.

(3) In the event that the Debtor is a partner of a firm, the Court having jurisdiction over the region where
the domicile of the firm is located shall also be competent to rule.

(4) In the event that the debtor does not have a domicile within the territory of the Republic of Indonesia,
but having his profession or business in the territory of the Republic of Indonesia, the Court
competent in rendering decision is the Court having jurisdiction over the region where the domicile or
the head office from which the debtor conducts his profession or business is located.

(5) In the event that the debtor is a legal entity, then its domicile shall be as set forth in its articles of
association.

Article 3
Paragraph (1)
Other matters means among others, actio pauliana, a third party defense towards seizure,
or a case in which the Debtor, Creditor, Receiver, or administrator become one of the party
in the case related to the bankruptcy asset including claim of the Receiver towards the Board
of Directors causing the company to be declared bankrupt because of default or errors.

Procedural Law applicable in ruling the case that includes other matters is the same as the
Civil Procedural Law (KUHAP) applicable for cases in the petition for bankruptcy declaration,
including the time limit provisions.

Paragraph (2)
Sufficiently clear

Paragraph (3)
In the event that the concerns decision on bankruptcy petition is declared by more than one
courts authorized in ruling the same Debtors, at different date, then the decision pronounced
at the earliest date shall be applicable.

In the event that the decision of bankruptcy petition is declared by different courts at the
same date, on the same Debtor, then the Court decision having the jurisdiction that covers
the legal domicile of the Debtor shall be applicable.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Article 4

(1) In the event that the bankruptcy petition is filed by an individual debtor who is still bound by legal
marriage, the petition may only be submitted with the consentof the spouse.
(2) Terms as set forth in paragraph (1) shall not be applicable if there is no common property.

Paragraph (1)
This provision is only applicable if the bankruptcy petition is filed by the Debtor. Spousal
consent is required, because it concerns common asset.

Valid legal marriage must be proven with marital deed issued by the competent authorities.

Paragraph (2)
Sufficiently clear.

Article 5

A bankruptcy petition toward a firm must contain name and domicile of the respective partner who is jointly
liable to all of the firms debt.

Domicile means the registered domicile of the partner as resident. In the event that the partners
domicile is not known, then his residence shall be mentioned.

Name and domicile in this provisions is in accordance with the contents stated in the Identity Card
(KTP).

Article 6

(1) The bankruptcy petition shall be submitted to the Chairman of the Court.
(2) The Clerk shall register the bankruptcy petition on the date the petition concerned is submitted, and
a written receipt signed by the authorized official shall be given to the petitioner on the same day as
the date of registration.

(3) The Clerk must reject the registration of a bankruptcy petition for institutions as set forth in Article 2
paragraph (3), paragraph (4) and paragraph (5) if it is conducted in contrary to the provisions of such
paragraphs.

(4) The Clerk shall submit the bankruptcy petition to the Chairman of the Court within 2 (two) days after
the date of the petition registration.

(5) In a period of no later than 3 (three) days after the date of the bankruptcy petition is registered, the
Court shall study the application and set a date for a hearing.

(6) The hearing of the bankruptcy petition shall be held at the latest 20 days after the date of the petition
is registered.

(7) Upon the request of the Debtor and subject to sufficient reasons, the Court may postpone the
hearing as set forth in paragraph (5) for no more than 25 days after the date of the petition is
registered.

Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Any Clerk who violates this provision shall be imposed with sanctions in accordance with the
laws and regulations.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Sufficiently clear.

Paragraph (7)
Sufficient reasons means, among others, the existence of statement letter from a doctor.

Article 7

(1) The petition as set forth in Article 6, Article 10, Article 11, Article 12, Article 43, Article 56, Article 57,
Article 58, Article 68, Article 161, Article 171, Article 207 and Article 212 must be submitted by an
advocate.
(2) Terms as set forth in paragraph (1) shall not be applicable in the event that the petition is submitted
by the district attorney, Bank Indonesia, Capital Market Supervisory Board, and Minister of Finance.

Sufficiently clear.

Article 8
(1) Court:
a. shall be obliged to summon the Debtor, in the event that the bankruptcy petition is submitted
by the Creditor, district attorney, Bank Indonesia, Capital Market Supervisory Board, or
Minister of Finance;
b. may summon the Debtor in the event that the bankruptcy petition is submitted by the Debtor
and there is doubt as to whether the condition to declare bankrupt as set forth in Article 2
paragraph (1) has been met.

(2) Summon as set forth in paragraph (1) shall be sent by the bailiff by the express mail at the latest
within 7 (seven) days before the first hearing is held.

(3) Summon is valid and deemed to be accepted by the Debtor, if it is made by the bailiff in accordance
with the terms as set forth in paragraph (2).

(4) The bankruptcy petition shall be granted if there are facts and circumstances which can be simply
proven that the conditions for a declaration of bankruptcy as set forth in Article 2 paragraph (1) has
been met.

(5) The Court Decision on the bankruptcy petition shall be pronounced by no later than 60 (sixty) days
after the date of the bankruptcy petition is register.

(6) The Court Decision as set forth in paragraph (5) shall also contain:
a. certain article from the related laws and regulations and/or unwritten source of law which
become a base to rule; and
b. legal consideration and dissenting opinion from the members of the judge or the chairman of the
penal of judges.

(7) The decision on the bankruptcy petition as set forth in paragraph (6) which completely contained
legal consideration as the basis for such decision must be pronounced in a public court and can be
initially performed, regardless of such decision is filed with remedy.

Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Facts or situation which can be simply proven means the presence of the fact that there
are two or more Creditors and the fact that the debthas become due and payable. While,
the difference in amount of debt claimed by the bankrupt petitioner and bankrupt respondent
will not interfere the decision of bankruptcy declaration.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Point a
Sufficiently clear.
Point b
Legal consideration or different opinion from the judge members or the chairman of the
panel of judges shall be included as attachment of such court decision.

Paragraph (7)
Sufficiently clear.

Article 9

Copies of the Court decision as set forth in Article 8 paragraph (6) shall be submitted by the bailiff with
registered express mail to the Debtor, the party filing the bankruptcy petition, Receiver, and Supervisory
Judge by no later than 3 (three) days after the date of the decision on the bankruptcy petition is pronounced.

The party filing bankruptcy petition is Creditors, district attorney, Bank Indonesia, Capital Market
Supervisory Board, or the Minister of Finance.

Article 10

(1) So long as the decision on the bankruptcy petition has not been pronounced, each of the Creditor,
district attorney, Bank Indonesia, Capital Market Supervisory Board, or the Minister of Finance may
submit a petition to the Court to:

a. place the security seizure against part or all of the Debtors asset; or
b. appoint a temporary Receiver to monitor:
1) Debtor business management; and
2) payment made to the Creditor, assignment, or encumbrance of any asset of the Debtor,
which in the framework of bankruptcy is the Receiver authority.

(2) The petition as set forth in paragraph (1) may only be granted if such actions are necessary to
protect the interest of Creditors.

(3) In the event that the petition as set forth in paragraph (1) point a is granted, the Court may stipulated
conditions that the Petitioner Creditor shall provide security in an amount deemed reasonable by the
Court.

Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
The security effort as set forth in this provisions has a preventive and temporary nature, and
it is intended to prevent any possibilities for Debtors to make any actions towards his asset
resulting losses to the Creditors interest in paying his debts.

Nevertheless, to maintain stability of the Debtors and Creditors interest, the Court may
require Creditors to provide a deposit in reasonable amount, if such security effort is granted.
In stipulating deposit requirements over the entire Debtor asset, the types of Debtors asset
and the amount of deposit that must be given should be equal to the possibility of losses
suffered by the Debtor if the bankruptcy petition is rejected by the Court.

Article 11

(1) Legal remedy against a decision on a bankruptcy petition is cassation to the Supreme Court.

(2) The petition for cassation as set forth in paragraph (1) shall be submitted by no later than 8 (eight)
days after the date of the decision on the cassation petition is pronounced, by registering to the
Court Clerk which has rendered the bankruptcy petition.

(3) The petition for cassation as set forth in paragraph (2), other than could be submitted by the Debtor
and Creditor, it could also be submitted by other Creditor which is not part of the party of the first
level hearing that are not satisfied to the decision on the Bankruptcy petition.

(4) Clerk shall register the cassation petition on the date of the petition concerned is submitted and a
written receipt signed by the clerk should be submitted to the petitioner on the same date to that of
the registration acceptance date.

Sufficiently clear.

Article 12

(1) The cassation petitioner shall submit the memorandum of cassation to the Court Clerk on the date
the cassation petition is registered.

(2) Clerk shall deliver the cassation petition and memorandum of cassation as set forth in paragraph (1)
to the cassation respondent by no later than 2 (two) days after the cassation petition is registered.

(3) The cassation respondent may submit a counter-memorandum of cassation to the Court Clerk by no
later than 7 (seven) days after the date the cassation respondent accepted the memorandum of
cassation as set forth in paragraph (2), and the Court Clerk shall submit the counter-memorandum of
cassation to the cassation petitioner by no later than 2 (two) days after the counter-memorandum of
cassation is accepted.

(4) Clerk shall submit the cassation petition, memorandum of cassation, and counter-memorandum of
cassation, along with the brief concerned, to the Supreme Court by no later than 14 (fourteen) days
after the date the cassation petition is registered.

Paragraph (1)
Sufficiently clear.

Paragraph (2)
See elucidation of Article 6 paragraph (3).

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Article 13

(1) The Supreme Court should study the cassation petition and stipulate the date for a hearing by no
later than 2 (two) days after the date of the cassation petition is accepted by the Supreme Court.
(2) Examination hearing on the cassation petition shall be performed by no later than 20 (twenty) days
after the date of cassation petition is accepted by the Supreme Court.
(3) Decision on the cassation petition must be pronounced by no later than 60 (sixty) days after the date
of cassation petition is accepted by the Supreme Court.
(4) Decision on the cassation petition as set forth in paragraph (3) which completely contain legal
consideration which become the basis of such decision must be pronounced in a public court.
(5) In the event that difference of opinion occurred between the members of and the chairman of the
panel of judges, then the dissenting opinion must be stated in the cassation decision.
(6) Clerk on the Supreme Court shall be obliged to submit copies of the cassation decision to the Clerk
at the Commercial Court by no later than 3 (three) days after the date of the cassation petition is
pronounced.
(7) The Court bailiff shall be obliged to submit the copies of cassation decision as set forth in paragraph
(5) to the cassation petitioner, the cassation respondent, Receiver, and Supervisory Judge by no
later than 2 days after the cassation decision is accepted.

Sufficiently clear.

Article 14

(1) Reconsideration can be filed toward the decision on the bankruptcy petition having binding legal
force.
(2) Terms as set forth in Article 12 and Article13 shall be valid mutadis mutandis for reconsideration.

Sufficiently clear.

Article 15

(1) In the decision of bankruptcy declaration, a Receiver and a Supervisory Judge shall be appointed by
the Court judge.

(2) In the event that the Debtor, Creditor, or the relevant authority filing a bankruptcy petition as set forth
in Article 2 paragraph (2), paragraph (3), paragraph (4), or paragraph (5) does not submitted a
proposal for the appointment of a Receiver to the Court, then the Chancery Court shall be appointed
as a Receiver.

(3) Receiver appointed as set forth in paragraph (1) must be independent, does not have a conflict of
interest with the Debtor or Creditor, and is not currently handling bankruptcy cases and suspension
of debt payment for more than 3 (three) cases.

(4) Within a period of 5 (five) days after the date of bankruptcy declaration is accepted by the Receiver
and Supervisory Judge, the Receiver shall announce in the State Gazette and in at least 2 daily
newspapers stipulated by the Supervisory Judge, on the decision of bankruptcy declaration
containing the following matters:
a. name, address, and work of the debtor;
b. name of the Supervisory Judge;
c. name, address and the work of the Receiver;
d. name, address and the work of the member of temporary Creditor committee, if it has been
appointed; and
e. domicile and time of the first Creditor meeting.

Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Independent and has no conflict of interest means that the continuity presence of the
Receiver does not depend on Creditor or Debtor, and the Receiver does not have similar
economic interest with the Debtor or Creditor.

Paragraph (4)
At least 2 (two) daily newspaper means:
1. Daily newspaper nationally circulated; and
2. Local daily newspaper circulated in the Debtors domicile.

Article 16

(1) The Receiver has the authority to perform management and/or settlement of bankruptcy asset
as of the date of bankruptcy decision is pronounced, even though a cassation or reconsideration
is filed upon such decision.
(2) In the event that the decision on the bankruptcy petition of declaration is cancelled based on
cassation or reconsideration, all actions performed by the Receiver before or up to the date the
Receiver accepted the notice on the cancellation decision as set forth in Article 17 are still valid
and bind the Debtor.


Paragraph (1)
Settlement in this provisions means asset cashing to pay or settle its debts.

Paragraph (2)
All actions performed by the Receiver covers any action taken for the management and
settlement of the bankruptcy asset.

Still valid and bind the Debtor, means that any action of Receiver cannot be claimed in any
court.

Article 17

(1) The Receiver shall announce the cassation or reconsideration decision canceling the bankruptcy
decision in the State Gazette and in at least in 2 daily newspapers as set forth in Article 15
paragraph (4).

(2) The Penal of Judges cancelling the bankruptcy decision shall stipulate the bankruptcy expenses and
the Receivers commission fee.

(3) Expenses as set forth in paragraph (2) shall be charge to the petitioner of the bankruptcy declaration
or to the petitioner and debtor in a proportion stipulated by the penal of judges.

(4) For the payment for bankruptcy expenses and Receiver commission fee as set forth in paragraph
(2), the Chairman of the Court shall issue an execution stipulation upon Receiverrequest.

(5) In the event that the decision of bankruptcy declaration is cancelled, amicable settlement that may
occur shall become void by law.


Paragraph (1)
Sufficiently clear.

Paragraph (2)
Stipulation on bankruptcy expenses is conducted by the Panel of Judges of the Court which
deciding the bankruptcy case based on details submitted by the Receiver after hearing
consideration from the Supervisory Judge.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Article 18

(1) In the event that the bankruptcy asset is not sufficient to pay the bankruptcy expenses, then the
Court upon Penal of Judges motion and after hearing from the temporary creditor committee if there
is any, also after legally summoned or heard the Debtor, may rendered the revocation of the decision
for bankruptcy declaration.

(2) Decision as set forth in paragraph (1) shall be announced in a public hearing.

(3) The Penal of Judges that ordered the revocation of decision of bankruptcy declaration shall stipulate
the amount of bankruptcy expenses and the Receiver commission fee.

(4) The amount of bankruptcy expenses and Receiver commission fee as set forth in paragraph (3) shall
be charged to the Debtor.

(5) Expenses and commission fee as set forth in paragraph (3) must be initially performed on all debts
which are not secured with collateral.

(6) The stipulation of the penal of judges concerning bankruptcy expenses and Receiver commission fee
as set forth in paragraph (3) cannot be filed with a remedy.

(7) For the payment of the bankruptcy expenses and Receiver commission fee as set forth in paragraph
(3), the Chairman shall issue execution stipulation upon the Receiver request, acknowledged by the
Supervisory Judge.

Paragraph (1)
Temporary creditor committee, means a creditor committee formed before the verification
meeting. While, the creditor committee formed after the verification meeting is a permanent
creditor committee.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
See elucidation of Article 17 paragraph (2).

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Sufficiently clear.

Paragraph (7)
Sufficiently clear.

Article 19

(1) The decision ordering the revocation of bankruptcy declaration shall be announced by the Court
Clerk in the State Gazette of the Republic of Indonesia and in at least in 2 (two) daily newspapers as
set forth in Article 15 paragraph (4).

(2) The decision on the revocation of bankruptcy declaration as set forth in paragraph (1) may be filed
with cassation and/or reconsideration.

(3) In the event after the decision of the revocation of bankruptcy declaration is pronounced, a new
bankruptcy petition is filled, the Debtor or the petitioner should prove that there is sufficient amount of
asset to pay for the bankruptcy expenses.

Sufficiently clear.
Article 20

(1) The Court Clerk shall compose a public registry to record each bankruptcy cases separately.

(2) The public registry as set forth in paragraph (1) must contain the following orders:
a. summary of bankruptcy decision or revocation decision of bankruptcy declaration;
b. brief contents of amicable settlement and legalization of the decision;
c. revocation of amicable settlement;
d. sharing amount in the settlement;
e. bankruptcy revocation as set forth in Article 18; and
f. rehabilitation;
by stating their respective date.

(3) Further provision concerning the form and content of public registry as set forth in paragraph (1) shall
be stipulated by the Decision of the Head of the Supreme Court.

(4) Public registry as set forth in paragraph (1) shall be open for public and can be seen by every people
without payment.

Paragraph (1)
See elucidation Article 6 paragraph (3).

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Second Section
Consequences of Bankruptcy
Article 21

The bankruptcy shall include the total asset of the Debtor at the time the bankruptcy declaration is
pronounced along with all of which that he obtained during the bankruptcy.

Sufficiently clear.

Article 22

Terms as intended by Article 21 shall not be applicable to:
a. material, including animals that are truly required by the Debtor in connection with his work, equipment,
medical tools used for health, sleeping bed and its tool used by the Debtor and his family, and food for
30 (thirty) days for Debtor and his family located in such place;
b. all things that the Debtor acquired from his own work as salary from a position or service, as fee,
pension, benefits, insofar determined by the Supervisory Judge; or
c. Cash given to the Debtor to fulfill an obligation to feed in accordance to the law.

Sufficiently clear.

Article 23

Bankrupt Debtor as intended by Article 21 and 22 cover wife or husband from the Bankrupt Debtor who are
married with joint marital assets.

Sufficiently clear.

Article 24

(1) By law, Debtor shall loss his rights to take charge and manage his asset which are included in the
bankruptcy assets, as from the date of the decision of bankruptcy declaration is pronounced.

(2) Date of the decision as intended by paragraph (1) shall be calculated as from 00.00 hour of local
time.

(3) In the event that before the decision of bankruptcy declaration is pronounced, transfer of fund has
been made through Bank or institution other than bank on the stipulation date as intended by article
(1), such transfer shall obliged to be continued.

(4) In the event that before the decision of bankruptcy declaration is pronounced securities transaction
has been made in the Stock exchange, therefore such transaction shall be obliged to be finished.


Paragraph (1)
In the event that the Debtor is a Limited Liability Company, such organ of limited liability
company is still function with the provision if in the implementation of such function causes
the bankruptcy assets to be reduced, then the money disbursement which is part of the
bankruptcy assets, is the Receiver authority.

Paragraph (2)
by local timing means the place where the decision of bankruptcy declaration is
pronounced by the Commercial Court, foe example, the decision is pronounced in Jakarta
on July 1, 2001 at 13.00 Western Indonesia Time, then such decision shall be effective as
from 00.00 Western Indonesia Time on July 1, 2001.

Paragraph (3)
Fund transfer through a bank is required to be excepted to ensure the constant and certainty
of the system transfer through a bank.

Paragraph (4)
Securities transfer in the Stock Exchange is require to be excepted to ensure the constant
and certainty of law on securities transaction in the Stock Exchange.
The settlement of Securities Transaction in the Stock Exchange may be conducted in
accordance with the terms of book entry settlement or other terms in accordance with the
laws and regulations in the capital Market sector.

Article 25

All arising Debtors contract after the decision of bankruptcy declaration may no longer be paid from the
bankruptcy assets, except such contract give benefit to bankruptcy assets.

Sufficiently clear.

Article 26

(1) Claim concerning right and obligation concerning the bankruptcy assets must be filed by or to the
Receiver.

(2) In the event that claim as intended by paragraph (1) is filed or continued by or to the Receiver of
Bankrupt Debtor, then if such claim caused a punishment against the Bankrupt Debtor, such
punishment shall not have legal consequences against the bankruptcy assets.

Sufficiently clear.

.
Article 27

During the bankruptcy, claim to obtain the contract fulfillment of the bankruptcy assets appointed to the
Bankrupt Debtor may only be filed by registering it to be reviewed.

Sufficiently clear
Article 28

(1) A legal claim filed by the Debtor and which still in the bankruptcy process, upon the defendant
request, the case must be adjourned to give the defendant the opportunity to summon the Receiver
to take over the case in a period determined by the Judge.

(2) In the event that the Receiver does not react to the summons, the defendant is entitled to invoke that
the case to be release, and if this matters is not requested by the defendant, the case between the
Debtor and the defendant may be continued without cost to the bankruptcy assets.

(3) Terms as intended by paragraph (2) shall be applicable also if the Receiver rejected to take over
such case.

(4) Even without being summoned the Receiver is entitled to take over the case at any time and have
the Debtor is released from the case.

Paragraph (1)
Taking over a case means an assignment of creditor position as the defendant, transferred
to the Receiver.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Article 29

A legal claim in the Court filed against the Debtor insofar is intended to acquire the obligation fulfillment from
the bankruptcy assets and the case is in process, shall be void by law and the decision of bankruptcy
declaration is pronounced against the Debtor.

Sufficiently clear.

Article 30

In the event that a case is continued by the Receiver against the opposing party, then the Receiver can filed
cancellation on every actions conducted by the debtor before the concerned is declared bankrupt, if it is can
proven that the Debtors action were conducted for the purpose of to caused losses to the Creditor and this
matters is acknowledge by the opposing party.

Sufficiently clear

Article 31

(1) The decision of bankruptcy declaration will have the result, that all stipulation of Court execution
against every part of the bankruptcy assets that has started before the bankruptcy, must be
immediately terminated and as from then, no decision can be perform including or even to detain the
Debtor.

(2) All confiscation which has been executed shall be nullified and the Supervisory Judge shall order the
deletion insofar as may be necessary.

(3) Without prejudice to the terms as intended by Article 93, the Debtor who is still in detention shall be
released immediately after the decision of bankruptcy declaration is pronounced.

Paragraph (1)
Without prejudice to the provision of Article 56, Article 57, and Article 58, this provision shall
not be applicable for Creditor as described in Article 55.

Paragraph (2)
What is meant by if Supervisory Judge is required must order a nullification to the land
seizure or registered vessel.

Paragraph (3)
Detention in this provision means gijzeling.

Article 32

During the Debtor Bankruptcy a fine shall not be imposed.

Fine in this Article covers a fine imposed before the decision of bankruptcy declaration is
pronounced.

Article 33

If prior to the bankruptcy declaration is pronounced, the process of eviction of the Debtors movable or
immovable goods have advanced so far that the day of the sale was already fixed. The Receiver may upon
authorization by the Supervisory Judge have the sale continued on account of the bankruptcy assets.

The proceed of sale of Debtors properties includes into the bankruptcy assets and is not given to
such execution petitioner.

Article 34

Except if it is determined otherwise by this Law, the agreement that intended to dispose of the right on land,
transfer of vessel ownership, security rights charges, mortgage, or fiduciary guarantee which has been
agreed upon, shall not be performed after the decision of bankruptcy declaration is pronounced.

Elucidation of Article34
Sufficiently clear.

Article 35
In the event a demand is filed for verification, such filling
Elucidation of Article35
Sufficiently clear.

Article 36

(1) In the event that at the time the decision of bankruptcy declaration is pronounced, there is an
executory contract that has not yet or has only partially been performed, then the party whit whom
the debtor had contracted may request confirmation from the Receiver with regard to the
continuation of the performance of such contract within a time period agreed to by the Receiver and
such party.

(2) In the event that the agreement concerning time period as intended by paragraph (1) is not met, the
Supervisory Judge shall stipulate the said time period.

(3) If the Receiver does not answer or is not willing to continue the performance of such agreement, the
agreement shall be terminated and the party as intended by paragraph (1) may claim compensation
and shall be treated as a unsecured creditor.

(4) If the Receiver declares his willingness then the Receiver shall be obliged to provide security on his
effort to perform such agreement.

(5) Terms as intended by paragraph (1), paragraph (2), paragraph (3), and paragraph (4) shall not be
applicable to contracts that obligates the debtor to personally perform the contract.

Sufficiently clear

Article 37

(1) In the event that the terms as intended by Article 36, a delivery of goods that are usually sold in a
time period and the party that must deliver such goods before the delivery is performed it is stated
bankrupt, therefore the contract shall become null with the decision of bankruptcy declaration being
pronounced, and in the event that the opposing party were damage caused by the annulment then
the concerned may represent himself as the unsecured creditor to acquire the compensation.
(2) In the event that the bankruptcy assets were harmed by the annulment as intended by paragraph (1)
then the opposing party must pay the said compensation.

Sufficiently clear.

Article 38

(1) If the Debtor has rented an object, then both Receiver and the lessor may terminate the lease, with
the condition that notice of termination is performed prior to the termination of the agreement in
accordance with the local custom.

(2) In the event that the termination is conducted as intended by paragraph (1), must deliver a notice of
termination according to the agreement or custom in the period of the shortest 90 (ninety) days.

(3) In the event that the lease has been paid advance, then the lease agreement shall not be soon
terminated before the period that has been paid in advance terminates.

(4) As from the date of decision of bankruptcy declaration is pronounced, the lease shall become debts
of bankruptcy assets.

Sufficiently clear.
Article 39

(1) Workers who works for the Debtor may resign, and on the other hand the Receiver may render their
dismissal with due observance of the period of the agreement or the prevailing laws and regulations,
with the definition that such dismissal may be given within a period of 45 (forty five) days before.
(2) As from the decision of bankruptcy declaration is pronounced, indebted wages before and after the
decision of bankruptcy declaration is pronounced shall represent debts of bankruptcy assets.

Paragraph (1)
Provisions concerning Termination of Employment, the Receiver still has manpower laws
and regulations as guidelines.

Paragraph (2)
Wages means the employees right which is accepted and stated in the form of money as
remuneration from the employer to the employee based on the work of service that has been
or will be performed, stipulated, and paid according to a work agreement, agreement, or
laws and regulations, including allowance for employee and their families.

Article 40

(1) Inheritances which falls to the Bankrupt Debtor during the bankruptcy, by the Receiver may not be
accepted unless it create benefit to the debts of bankruptcy assets.
(2) To reject the inheritance, the Receiver shall require a permit from the Supervisory Judge.

Sufficiently clear.
Article 41

(1) For the interest of bankruptcy assets, to the Court can be requested a cancellation of all legal acts of
the Debtor who has been declared bankrupt which incurred losses to the interest of the creditors,
conducted before the decision of bankruptcy declaration is pronounced.
(2) Cancellation as intended by paragraph (1) may only be performed if it can be proven that at the time
the legal act is conducted, the Debtor and the party with whom such legal act were conducted shall
be deemed to have acknowledge or should have acknowledge that such act would resulted in
damage to the creditor.
(3) Excepted from the terms as intended by paragraph (1) is the Debtors legal act which must be
performed based on the agreement and/or law.

Paragraph (1)
Sufficiently clear.

Paragraph (2)
What is meant by party with whom such act is conducted in this provisions, includes parties
for whom such agreement is made.

Paragraph (3)
Act which is obliged to be conducted because of law, such as, the obligation to pay tax.

Article 42

If the legal act which caused damage to the Creditor is conducted in the term of 1 (one) year before the
decision of the bankruptcy declaration is pronounced, and such act shall not be obligated for the Debtor to
perform, except if it can be proven otherwise, Debtor and the party with whom such legal act is conducted
shall be deemed to have known or should have known that such act would resulted in damage to the
Creditor as intended by Article 41 paragraph (2), in the event that such acts:

a. constitutes a contract in which the obligations of the Debtor considerably exceed the obligations of the
party with whom the contract was made;
b. constitutes a payment of, or security for, a debt which is not yet due and not payable;
c. is performed by an individual debtor with or vis--vis:

1) his or her spouse, foster child or relative up to the third degree;
2) a legal entity which the Debtor or the parties described in point 1 are the members of the Board
of Directors or managers or in which said parties, severally or jointly participate directly or
indirectly in the ownership of said legal entity for at least 50% (fifty percent) of the paid up capital
or in the legal entity management.

d. is performed by a Debtor being a legal entity with or for the interest of:

1) members of the Board of Directors or managers of the Debtor, or a spouse, or foster child or
relative up to third degree of any members of the said Board of Directors or managers;
2) any individual, severally or jointly with the spouse, foster child, or relative up to the third degree
of said individual who participates directly or indirectly in the ownership of the Debtor of more
than 50% (fifty percent) of the paid-up capital or in the legal entity management.
3) an individual, whose spouse, or foster child, or relative up to the third degree, participates
directly or indirectly in the ownership of the Debtor of more than 50% (fifty percent) of the paid-
up capital or in the legal entity management.

e. is performed by the Debtor being a legal entity with or with respect to another legal entity, if:

1) an individual member of the Board of Directors or manager of both legal entities is the same
person;
2) the spouse, or foster child, or relative up to the third degree, of an individual member of the
Board of Directors or manager of the Debtor is a member of the Board of Directors or manager
in the other legal entity, or vice versa;
3) an individual member of the Board of Directors, or manager, or member of the board of
supervisors of the Debtor, or a spouse, or foster child, or relative up to the third degree,
participates, severally or jointly, directly or indirectly, in the ownership of the other legal entity of
more than 50% (fifty percent) of the paid-up capital or in the legal entity management.
4) the Debtor is a member of the Board of Directors or a manager in the other legal entity or vice
versa;
5) the same legal entity, or the same individual, or either together with or separately for his or her
spouse, and or his or her foster children and his or her relatives up to the third degree,
participates, directly or indirectly in both entities for at least 50% (fifty percent) of the paid-up
capital;

f. is performed by a Debtor begin a legal entity with or with respect to a legal entity in a group of a legal
entities of which the Debtor is a member;

g. terms in point c, point d, point e, and point f shall be valid mutatis mutandis in the event it is conducted
by the Debtor with or for the interest of:
1) member of a legal entity, or a spouse, or foster child, or relative up to the third degree of any
members of said Board of Directors;
2) any individual, severally or jointly with the spouse, foster child, or relative up to the third degree
of said individual who participates directly or indirectly in the legal entity management.

Point a
Sufficiently clear.

Point b
Sufficiently clear.

Point c
Point 1)
Foster child means a child appointed based on stipulation of the court and foster
child based on custom law of the Bankrupt Debtor.
His relatives means a relationship based on marriage or descent horizontally or
vertically.

Point 2)
Members of the Board of Directors means the members of the supervisory board,
or individuals participated in the ownership, including every person that has held
such position in the period of less than 1 (one) year before such action is conducted.

Point d
Ownership means the capital ownership or share capital.

Point e
Control is the ability to directly or indirectly determine, by any means of the company
management and/or policy. Parties having 25% or more shares from the share amount that
has been issued and have voting rights on the company is deemed to have control such
company, except the party concerned can prove to have conducted no control, as for he
parties having less than 25% from the share amount that has been issued and have voting
rights on the company is deemed not to have control of such company, except the party
concerned can prove to have conducted control.

Point f
In the stipulation of this provision, a legal entity which is a member of the Board of Directors
in the form of legal entity, shall be treated as the Board of Directors in the form of such legal
entity.

Point g
Sufficiently clear.

Article 43

Annulment of a gift made by a Debtor may be requested, if the Receiver can prove that at the time said gift
was made, the Debtor knew or should have known that said action would result in damage to the creditors

With this provision, the Receiver does not need to prove that such grant beneficiary acknowledge or
should acknowledge that such actions may cause losses to the Creditor.

Article 44

Unless it can be proven otherwise, the Debtor shall be deemed to have known or should have known that
said gift would damage the creditors if said gift were made within a time period of 1 (one) year before the
decision of bankruptcy declaration is rendered.

Sufficiently clear.
.
Article 45

Nullification of a payment by a Debtor, of a claimable debt may be invoked only, if it is proven that either he,
who received the payment, had known that the bankruptcy of the Debtor had been registered, or the
payment resulted from deliberations between the Debtor and Creditor meaning to favor the latter by that
payment over the other creditors.

Sufficiently clear.


Article 46

(1) Based on the provision as intended by Article 45, payment that has been received by the holder of
replacement letter or document because of his legal relation with formal holders is obliged to accept
the payment, such payment may not be repaid
(2) In the event that payment can be repaid as intended by paragraph (1), the individual that acquire
benefit as a cause of the issuance of replacement letter or document, is obliged to give it back to the
bankruptcy assets the total amount that has been paid to the Debtor if:
a. can be proven that on the time of issuance as intended by paragraph (1) the concerned
known that the bankruptcy petition of the Debtor has already been registered; or
b. the issuance of such letter is a result of conspiracy between the Debtor and the initial holder.

Sufficiently clear.

Article 47

(1) Claim on rights based on the provision as intended by Article 41, Article 42, Article 43, Article 44,
Article 45, and Article 46 is filed by the Receiver to the Court.
(2) Creditor based on the reasons as intended by Article 41, Article 42, Article 43, Article 44, Article 45,
and Article 46 may file a rebuttal against the Receivers claim.

Sufficiently clear.

Article 48

(1) In the event that the bankruptcy ends with amicable settlement, then claim as intended by Article 47
shall be cancelled.
(2) Claim as intended by Article 47 shall not be cancelled, if such amicable settlement includes the
relinquishment of bankruptcy assets, in which case the claim can be continued or filed by the
acquitters.

(Missing text)
Article 49

(1) Every person who has received goods which are a part of the debtor asset contained in the legal
action that has been cancelled, must return such goods to the Receiver and report it to the
Supervisory Judge.
(2) In the event that the people as intended by paragraph (1) can not return the goods that has been
accepted in the first situation, is obliged to pay for compensation to the bankruptcy assets.
(3) The third partys right as intended by paragraph (1) acquired with good faith and is not free, must be
protected.
(4) Goods that has been accepted by the Debtor or the substitute value is obliged to be returned by the
Receiver, so long as the bankruptcy assets benefits, and as to the shortage, of person against whom
the cancellation was claimed may perform as a unsecured creditor.


Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
What is meant by good faith and is not free includes the holder of collateral right on such
goods.

Paragraph (4)
Sufficiently clear

Article 50

(1) Payment after the bankruptcy declaration is pronounced but prior to the notification, made to the
bankrupt Debtor in compliance with agreements concluded with him prior to bankruptcy declaration,
will free him from the bankruptcy assets so far as it is not proven that the concerned has
acknowledge such decision of bankruptcy declaration.

(2) Payment as intended by paragraph (1) being made after the decision of bankruptcy declaration is
pronounced, will not free him from the bankruptcy assets except if the people who made it can prove
that the announcement of decision of bankruptcy declaration which is conducted in accordance with
the law could not have been known.

(3) Payment to the Bankrupt Debtor, will free the Debtor against the bankruptcy assets, if the payment
benefits the bankruptcy assets.

Sufficiently clear.

Article 51

(1) Every person who has debts or claims against the Bankrupt Debtor, can request for set off, if his
debts or claim is issued before the decision of bankruptcy declaration is pronounce, or as a cause
from actions conducted with the Bankrupt Debtor before the decision of bankruptcy declaration is
pronounced.
(2) In the event it requires, the claim against the Bankrupt Debtor shall be calculated in accordance with
the provision as intended by Article 136 and Article 137.

Sufficiently clear.

Article 52

(1) Every person who has taken over a debt or claim from the third party before the decision of
bankruptcy declaration is pronounced, can not requested a debt set off, if at the time of expropriation
of debts and claim, the concerned person does not have good faith.
(2) All debts and claim which is taken over after the decision of bankruptcy declaration is pronounced
can not be met.

Paragraph (1)
Debt set off means compensation.

Paragraph (2)
Sufficiently clear.

Article 53

Every person who has debts to the Bankrupt Debtor who wishes to conduct debts set off with a registered
claim or replacement claim, is obliged to prove that at the time the decision of bankruptcy declaration is
pronounced, such individual with good faith has already become the holder of the letter or substitute letter.

Sufficiently clear.

Article 54

Every person who find himself in the same community with the Bankrupt Debtor, which as a result of or
during the bankruptcy of the Debtor was dissolved, is entitled from the share of the Bankrupt debtor in the
benefits at the distribution to deduct his share in the debts committed in relation with said community.

Sufficiently clear.

Article 55

(1) with due observance of the provision as intended by Article 56, Article 57, and Article 58, every
Creditor holder of collateral, fiduciary guarantee, security right mortgage, collateral right on other
properties, may execute his rights as if there were no bankruptcy.
(2) In the claim collection as intended by Article 136 and Article 137, they can only act after the
collection has been justified and only to collect the payment of the total amount acknowledge from
such collection.

Sufficiently clear
Article 56

(1) Creditor execution right as intended by Article 55 paragraph (1) and third party rights to claim its
asset which are under the Bankrupt Debtor or Receiver, shall be deferred for a period at the latest 90
(ninety) days as from the decision of bankruptcy declaration is pronounced.
(2) Deferment as intended by paragraph (1) shall not be valid against the Creditor bills guaranteed by
cash and the Creditor rights to perform a debts set off.
(3) During debts deferment as intended by paragraph (1), the Receiver may use bankrupt assets in the
form of movable and immovable goods or to sell the bankrupt assets in the form of movable which
are under the Receiver control in the context of continuity of the Debtors business, in the event that
a reasonable protection has been provided for the interest of the Creditor or the third party as
intended by paragraph (1).
(4) During the deferment as intended by paragraph (1), the Receiver may use the debtor asset in the
form of immovable and movable goods or to sell bankrupt asset in the form of movable goods which
are under the Receiver control in the context of the continuity of the Debtors business, insofar for
which case, a reasonable protection has been provided for the Creditors interest or the third party as
intended by paragraph (1).

Paragraph (1)
What is meant by deferred in this provision has purposes, among others:
- To enlarge the possibility of amicable settlement; or
- To enlarge the possibility to optimized the bankrupt assets; or
- To let the Receiver perform his duties optimally.
During the deferment period, all lawsuit to obtain payment on a claim
can not be filed in a judicature court, and for the said Creditor and the third
party is not allowed to executed or apply for seizure on goods that has become
collateral.
Paragraph (2)
Include in the exception towards the deferment in this matter is the Creditors right arose
from the debt set off which is part or caused from the transaction mechanism occurred in the
Stock Exchange and the Deposit Trade Exchange.

Paragraph (3)
Bankruptcy assets that can be sold to the Receiver is limited to the inventory and/or current
assets, although such bankrupt assets is borne with collateral right on properties.
reasonable protection means protection that need to be given to protect the Creditors or
the third parties interest which rights are deferred. With the asset court concerned, such
property right is deemed terminated by law.
a. compensation on the bankrupt asset write-down;
b. net proceed of sale;
c. substitute property right; or
d. reasonable and fair compensation along with other cash payment (secured debts).

Paragraph (4)
Sufficiently clear.

Article 57

(1) Period as intended by Article 56 paragraph (1) terminates by law at the time the bankruptcy is ended
sooner or at the time the insolvency condition as intended by Article 178 paragraph (1).
(2) Creditor or the third party whose rights is being deferred may file an application or change such
deferment conditions.
(3) If the Receiver rejected the application as intended by paragraph (1), the Creditor or the third party
may file such application to the Supervisory Judge.
(4) The Supervisory Judge in the term of no later than 1 (one) day after the application as intended by
paragraph (2) is accepted, is obliged to order the Receiver to immediately summon with recorded
letter or through courier, the Creditor and the third party as intended by paragraph (2) to be listened
at the examination hearing upon such application.
(5) The Supervisory Judge is obliged to give a stipulation on the application in the term of no later than
10 (ten)days after the application as intended by paragraph (2) is filed to the Supervisory Judge.
(6) In resolving the application as intended by paragraph (2), the Supervisory Judge shall consider:
a. the period of deferment that has occurred;
b. the protection for the Creditors interest and the said third party;
c. the impact of such deferment on the business continuity and the Debtors business
management along with the settlement of debtor asset.


Paragraph (1)
Insolvency means a situation of not being able to pay.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Matters that requires consideration from the Supervisory Judge as described in this
provisions does not ensure the possibilities for the Supervisory Judge to consider other
matters insofar as it is required to secure and optimized the value of bankrupt asset.

Article 58

(1) The stipulation of the Supervisory Judge on the application as intended by Article 57 paragraph (2)
can be in the deferment appointment for one or more Creditor, and/or stipulate requirements with
regards of the deferment period, and/or on one or several collateral which can be executed by the
Creditor.
(2) If the Supervisory Judge rejects to appoint or to change the requirements of such deferment, the
Supervisory Judge is obliged to order that the Receiver provides protection which is deemed
reasonable in order to protect the interest of the petitioner.
(3) Towards the stipulation of the Supervisory Judge, Creditor or the third party who filed the application
as intended by Article 57 paragraph (2) or the Receiver may file a defense to the Court in the term of
no later than 5 (five) days after the decision is pronounce, and the Court is obliged to resolve such
defense in the term of no later than 10 (ten) days after such defense is received.
(4) Towards the Court decision as intended by paragraph (2) can not file a legal remedy whatsoever
including reconsideration.

Paragraph (1)
Sufficiently clear.

Paragraph (2)
Regarding the protection given for the Creditors interest or the third party mentioned, see
elucidation Article 56 paragraph (3).

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Article 59

(1) With due observance of the provisions in Article 56, Article 57, and Article 58, the Creditor holder of
right as intended by Article 55 paragraph (1) must perform its right in the term of no later than 2 (two)
months after the insolvency condition commenced as intended by Article 178 paragraph (1).
(2) After the due date as intended by paragraph (1), the Receiver must claim the delivery of goods which
become the collateral to be sell further in accordance with the terms as intended by Article 185,
without prejudice to the Creditor holder of such rights of the proceeds of such collateral sale.
(3) At any time the Receiver may free the goods which become the collateral by paying the smallest
amount between collateral goods market price and the total debts guaranteed with such collateral
goods to the Creditor concerned.

Paragraph (1)
What is meant by must perform its right is that creditor has already perform its rights.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
What is meant by smallest amount is the smallest amount between the market price of
collateral goods compared with the amount of debts secured with collateral goods.

Article 60

(1) Creditor holder of rights as intended by Article 55 paragraph (1) which performs their rights , is
obliged to give their responsibilities to the Receiver with regard to the proceeds from the sale which
become collateral and deliver the remain proceed from the sale after being reduced with the total
amount of debts, interest, and fees to the Receiver.
(2) Upon claim from the Receiver or privileged Creditor which position is higher than the Creditor holder
of right as intended by paragraph (1), the Creditor holder of right is obliged to deliver part of the
proceeds from such sale for the same amount with the privileged amount of claim.
(3) In the event that the proceeds from the sale as intended by paragraph (1) is insufficient to cover the
claim concerned, such Creditor holder of rights may file the acquittal claim on such deficiency from
the bankrupt assets as unsecured creditor, after filing the request for claim concurrence.

Article 60
Paragraph (1)
Sufficiently clear.

Paragraph (2)
What is meant by privileged Creditor is a Creditor holder of rights as described in Article
1139 and Article 1149 of the Indonesian Civil Code.

Paragraph (3)
Sufficiently clear.

Article 61

Creditor having the right to retain goods owned by the debtor, shall not loss their rights because of a decision
of bankruptcy declaration.

Right to retain goods owned by the Debtors shall continue until the debts are settled.
Article 62

(1) In the event that spouse is declared bankrupt, then the spouse has the right to retake all movable
and immovable goods which is an individual asset from the spouse and asset acquired respectively
as a gift or inheritance.
(2) If the goods owned by the spouse and the payment has not been paid or the cash from the proceeds
from the sale has not been combined with the bankrupt assets, then the spouse is entitled to retake
the money of such proceeds from the sale.
(3) For private claim against the spouse, then the Creditor toward bankruptcy assets is a spouse.
Sufficiently clear.

Article 63

Spouse is not entitled to claim the benefit that contained in the wedding agreement to the spouse bankrupt
assets declared bankrupt, so as the spouse Creditor declared bankrupt is not entitled to claim the benefit
contained in the wedding agreement to the spouse which declared bankrupt.

This Article is an exception of Article 62 paragraph (3).

Article 64

(1) Spouse bankruptcy who married in a joint property shall be treated as such joint property bankruptcy.
(2) Without prejudice to the exception as intended by Article 25, such bankruptcy covers all goods
included in the joint, as the said bankruptcy is for the interest of the Creditor, which is entitled to
claim payment from the joint property.
(3) In the event that the spouse is declared bankrupt has goods that are not included into the joint
property, then such goods shall be included into bankrupt assets, nevertheless can only be use to
pay private debts of spouse whose declared bankrupt.
Sufficiently clear.
.
Third Section
Bankrupt Asset Management

Paragraph 1
Supervisory Judge
Article 65

The Supervisory Judge monitors the management and settlement of bankrupt assets.

Sufficiently clear.

Article 66

The Court is obliged to hear the opinion of the Supervisory Judge, before resolving a decision with regard to
the management and settlement of bankrupt asset.

Sufficiently clear

Article 67

(1) The Supervisory Judge shall be entitled to hear the information from the witness or order an
investigation by the experts in order to acquire clarity on all matters related to bankruptcy.
(2) Witness shall be summoned on behalf of the Supervisory Judge.
(3) In the event that the witness does not come or reject to testify, then the Civil Procedural Law shall be
applied.
(4) In the event that the witness domiciles outside the jurisdiction of the Court resolving the bankruptcy,
the Supervisory Judge may delegate the examination of such witness to the court having
jurisdictionover the domicile of the witness.
(5) Spouse, ex-spouse, and the biological family according to the up-descent and down-descent of the
Bankrupt Debtor has the right to resign as a witness.

Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Biological family shall include foster child.

Article 68

(1) Towards all stipulation of the Supervisory Judge, application for an appeal to the Court can
be submitted within 5 (five) days upon such stipulation is made.
(2) Application for an appeal can not be submitted against a stipulation as intended by Article 22 point b,
Article 33, Article 84 paragraph (3), Article 104 paragraph (2), Article 106, Article 125 paragraph (1),
Article 127 paragraph (1), Article 183 paragraph (1), Article 184 paragraph (3), Article 185 paragraph
(1), paragraph (2), and paragraph (3), Article 186, Article 188, and Article 189.

Sufficiently clear.

Paragraph 2
Receiver

Article 69

(1) The Receiver duty is to perform management and/or settlement of bankruptcy assets.
(2) In performing its duty, the Receiver:
a. is not obligated to obtain the approval from or to submit prior notification to the Debtor or one
of the Debtors organ, notwithstanding that the approval or notification outside the
bankruptcy is required;
b. May undertake loan from the third party, only in the frame work to improve the value of
bankruptcy assets.
(3) In the event to undertake loan from the third party, the Receiver is required to encumber the
bankruptcy assets with pledge, fiduciary guarantee, security right, mortgage, or other rights on
securities over properties, then such loan must be initially approved by the Supervisory Judge.
(4) Encumbrance of the bankruptcy assets with pledge, fiduciary guarantee, security right, mortgage, or
other rights on securities over properties as intended by paragraph (3), can only be carried out
against part of the bankruptcy assets which has not yet been encumbered for indebtedness.
(5) To appear before the Court hearing, the Receiver must initially obtain permit from the Supervisory
Judge, except in relation to receivables verification disputes or in matters as intended by Article 36,
Article 38, Article 39, and Article 59 paragraph (3).

Sufficiently clear

Article 70

(1) Receiver as intended by Article 69 are:
a. Probate Court; or
b. Other Receivers.
(2) Those who can become a Receiver as intended by paragraph (1) point b, are:
a. individuals domiciled in Indonesia, having special expertise required in the frame work to
manage and/or settle the bankruptcy assets and
b. registered in the ministry having the scope of duties and responsibilities in the field of laws
and regulations.

Paragraph (1)
Sufficiently clear.

Paragraph (2)
Point a
Special expertise shall mean those who attended and graduated from the
Receiver and administrator education.
Point b
Registered shall mean those who has satisfy the registration requirements in
accordance with the prevailing laws and regulations and is an active member of the
organization of Receiver and administrator profession.

Article 71

(1) The Court at any time may approve the proposal to replace the Receiver, after summoning
and hearing the Receiver, and to appoint other Receiver and/or appoint additional Receiver
at:
a. the Receiver own request;
b. the other Receivers request, if any;
c. the Supervisory Judges proposal; or
d. the Bankrupt debtors request.
(2) The Court must dismiss or appoint a Receiver upon a request or proposal from the
concurrent creditors based on the Creditors meeting resolution conducted as intended by
Article 90, with requirements that such resolution is resolved based on the affirmative votes
of more than (half) of the total concurrent creditors or their proxies who attend in the
meeting and represent more than (half) of the total receivables of the concurrent creditors
or their proxies who attend such meeting.

Sufficiently clear.

Article 72

The Receiver shall be responsible for his mistakes or negligence in performing his management and/or
settlement duties causing losses to the bankruptcy assets.

Sufficiently clear.

Article 73

(1) In the event more than one Receiver have been appointed, the Receivers shall require the approval
of more than (half) of the Receivers to undertake valid and binding actions.
(2) In the event of tie votes, the actions as intended by paragraph (1) must obtain the approval from the
Supervisory Judge.
(3) A Receiver designated for a special task based on the decision of bankruptcy declaration, shall be
entitled to act independently within the limits of his task.

Sufficiently clear.

Article 74

(1) The Receiver must submit regular reports to the Supervisory Judge concerning the condition of the
bankruptcy assets and the performance of his duties in every 3 (three) months.
(2) The reports as intended by paragraph (1) shall be open to the public and available to be sighted by
any person without any charge.
(3) The Supervisory Judge may extend the period as intended by paragraph (1).

Sufficiently clear

Article 75

The amount of the Receivers service fees shall be determined upon the bankruptcy is ended.

Sufficiently clear.

Article 76

The amount of service fee that must be paid to the Receiver as intended by Article 75 shall be stipulated
based on the guidance determined in the Ministerial Decree having the scope of duties and responsibilities in
the field of laws and regulations.

In stipulating the guidance of service fees amount for the Receiver, the Minister having the scope of
duties and responsibilities in the field of laws and regulations shall consider the level of ability or
expertise of the Receiver and the level of case complexity.

Article 77

(1) Every Creditors, creditors committee, and Bankrupt debtor may file an objection letter to the
Supervisory Judge against actions conducted by the Receiver or request the Supervisory Judge to
issue an order letter for the Receiver to undertake certain actions or not to undertake actions that
has been planned.
(2) The Supervisory Judge must convey the objection letter to the Receiver by no later than 3 (three)
days after the objection letter was received.
(3) The Receiver must provide his response to the Supervisory Judge by no later than 3 (three) days
after receiving the objection letter.
(4) The Supervisory Judge must provide his stipulation by no later than 3 (three) days after receiving the
Receivers response.

Sufficiently clear.

Article 78

(1) Without the authorization or permit from the Supervisory Judge, in the event that such authorization
or permit is required, or the incompliance with the provisions as intended by Article 83 and Article 84,
it will not affect the validity of the Receivers actions against the third party.
(2) In relation to such actions, the Receiver himself shall be responsible against the Bankrupt Debtor
and Creditors.

Sufficiently clear.

Paragraph 3
Creditors Committee

Article 79

(1) In the bankruptcy decision or with further stipulation, the Court may form a temporary creditors
committee consist of 3 (three) individual elected from the known Creditors in order to provide advice
to the Receiver.
(2) The appointed Creditor may be represented by other individual for all works related to his duties in
the committee.
(3) In the event that the appointed Creditor rejects his appointment, terminates, or dies, the Court must
replace such Creditor by appointing one of 2 (two) candidates proposed by the Supervisory Judge.


Paragraph (1)
Known Creditor shall mean Creditor who has registered itself to be verified.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear

Article 80

(1) Upon the completion of debts verification, the Supervisory Judge shall be obligated to offer the
Creditors to form a permanent creditors committee.
(2) At the unsecured creditors request based on the unsecured creditors decision adopted on a simple
majority votes in the Creditors meeting, the Supervisory Judge shall:
a. replace the temporary creditors committee, if in the bankruptcy decision has been appointed
such temporary creditors committee; or
b. form a creditors committee, if in the bankruptcy decision a creditors committee has not yet
been appointed.

Sufficiently clear.

Article 81

(1) The creditors committee at any time shall be entitled to request that all books, documents, and
correspondences concerning the bankruptcy to be shown.
(2) The Receiver shall be obligated to provide all information requested by the creditors committee.

Sufficiently clear.

Article 82

If it is necessary, the Receiver may conduct a meeting with the creditors committee for seeking advice.

Sufficiently clear.

Article 83

(1) Prior to file a claim or continue the ongoing case, or repudiate filed or ongoing claim, the
Receiver shall be obligated to seek the creditors committees opinion.
(2) The provisions as intended by paragraph (1) shall not apply for disputes concerning receivables
verification, concerning to continue or not to continue the bankrupt company, matters as intended by
Article 36, Article 38, Article 39, Article 59 paragraph (3), Article 106, Article 107, Article 184
paragraph (3), and Article 186 concerning the settlement and sale of bankruptcy asset, and
concerning time and the amount of division that must be made.
(3) The creditors committees opinion as intended by paragraph (1) shall not be required in the event the
Receiver has summoned the creditors committee to convene a meeting to provide the opinion,
nevertheless within 7 (seven) days upon the summon, the creditors committee did not provide such
opinion.

Sufficiently clear

Article 84

(1) The Receiver shall not be bound by the creditor committees opinion.
(2) In the event the Receiver does not approve the creditors committees opinion, the Receiver
shall be obligated to notify the creditors committee on the same within 3 (three) days.
(3) In the event the creditors committee does not approve the Receivers opinion, the creditors
committee may request the Supervisory Judges stipulation within 3 (three) days upon the
notification as intended by paragraph (2).
(4) In the event the creditors committee requests the Supervisory Judges stipulation, the
Receiver shall be obligated to postpone the implementation of actions that have been
planned for 3 (three) days.

Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Such 3 (three) days period shall be the dates after the creditors committee request the Supervisory
Judges stipulation, except the Supervisory Judge approved the Receiver before the lapse of such 3
(three) days.

Paragraph 4
Creditors Meeting

Article 85

(1) The Supervisory Judge shall preside as the chairperson in the Creditors meeting.
(2) The Receiver shall be obligated to attend in the Creditors meeting.

Sufficiently clear.

Article 86

(1) The Supervisory Judge shall determine day, date, time and location of the first Creditors meeting that
must be convened in the period of no later than 30 (thirty) days upon the date of bankruptcy decision
is pronounced.
(2) In the period of 3 (three) days upon the bankruptcy decision is received by the Supervisory Judge
and the Receiver, the Supervisory Judge shall be obligated to convey to the Receiver the plan to
convene the first Creditors meeting as intended by paragraph (1).
(3) In the period of no later than 5 (five) days upon the bankruptcy decision is received by the Receiver
and the Supervisory Judge, the Receiver shall be obligated to notify the known Creditors concerning
the Creditors meeting as intended by paragraph (2) through registered mail or courier, and
advertisement in the least 2 (two) daily newspaper, with due observance to the provisions as
intended by Article 15 paragraph (4).

Sufficiently clear.

Article 87

(1) Except as otherwise stipulated in this Law, all Creditors meetings resolutions shall be adopted
based on affirmative votes of more than (half) of the total votes cast by the Creditors and/or their
proxies who attend the meeting concerned.
(2) In the event the Creditors attend the Creditors meeting and do not use their rights to vote, then their
voting rights shall be calculated as disapproved votes.
(3) Further provisions concerning the calculation of the Creditors voting rights as intended by
paragraph (1) shall be regulated in a Government Regulation.
(4) Assignment of receivables conducted by means of splitting the receivables after the decision of
bankruptcy declaration is pronounced, does not create any voting rights for the new Creditors.
(5) In the event the assignment is conducted entirely after the decision of bankruptcy declaration is
pronounced, the assignees Creditors acquire the voting rights of the assignors Creditors.

Paragraph (1)
Proxy in this paragraph does not have to be an advocate.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Article 88

Creditor who retains voting rights shall be the acknowledged Creditor, Creditor who has been accepted with
conditions, and the carrier of a bearer receivables which has been verified.

Sufficiently clear.

Article 89

Creditor who has informed the Receiver that for such bankruptcy, a proxy has been appointed or at a
meeting, has authorized the other individual, then all summon and notification must be addressed to such
proxy, except if the Creditor request the Receiver to deliver the summon and notification to the Creditor itself
or another proxy.

Sufficiently clear.

Article 90

(1) The Creditors meeting shall be convened in accordance with the provisions in this Law.
(2) In addition to the meeting as intended by paragraph (1), the Supervisory Judge may convene a
meeting if it is deemed necessary or upon the request of:
a. creditors committee; or
b. at least 5 (five) Creditors representing 1/5 (one-fifth) of the total acknowledged or accepted
with conditions receivables.
(3) The Supervisory Judge shall be obligated to determine the day, date, time, and place of the meeting.
(4) The Receiver shall summon all Creditors having voting rights through registered mail or courier, and
advertisement in at the least2 (two) daily newspaper as intended by Article 15 paragraph (4).
(5) The summon through registered mail or courier, and advertisement in daily newspaper as intended
by paragraph (4) shall provide the agenda to be discussed in the meting.
(6) The Supervisory Judge must determine the time period between the day of the notice and the
meeting.

Sufficiently clear.

Paragraph 5
Judge Stipulation

Article 91

All stipulation concerning management and/or settlement of bankruptcy assets shall be stipulated by the
Court in the final level, unless otherwise provided in this Law.

Stipulation shall mean administrative stipulation, such as stipulation on Receivers honorarium,
appointment or termination of Receiver.
Court in the final level shall mean that such stipulation does not open for legal remedy.

Article 92

All stipulation concerning management and/or settlement of bankruptcy assets as well as those stipulated by
the judge, can be firstly executed, unless otherwise provided in this Law.

Sufficiently clear.

Section Four
Actions After the Bankruptcy Declaration
And Receivers Duties

Article 93

(1) The Court with a decision of bankruptcy declaration or at any time thereafter, upon a proposal from
the Supervisory Judge, a request from the Receiver or a request of one or more Creditors and after
consulting with the Supervisory Judge, may order the Bankrupt Debtor to be detained, either to be
placed in the State Detention House or at his own house, under the supervision of the public
prosecutor appointed by the Supervisory Judge.
(2) Detention order as intended by paragraph (1) shall be carried out by the public prosecutor appointed
by the Supervisory Judge.
(3) Detention period as intended by paragraph (2) shall be valid for the latest 30 (thirty) days as from the
execution of such detention.
(4) At the end of such period as intended by paragraph (3), upon a proposal from the Supervisory Judge
or a request from the Receiver or one or more Creditors and after consulting with the Supervisory
Judge, the Court may extend the detention period for the latest 30 (thirty) days for each extension.
(5) Detention cost shall be borne to the bankruptcy assets as debts of the bankruptcy assets.

Sufficiently clear.

Article 94

(1) The Court shall be authorized to release the Bankrupt Debtor from the detainment upon a proposal
from the Supervisory Judge or a request from the Bankrupt Debtor with security deposit from the
third party that the Bankrupt Debtor at any time will appear before the Court on the first summon.
(2) The amount of security deposit as intended by paragraph (1) shall be stipulated by the Court and if
the bankrupt Debtor does not appear before the Court, such security deposit shall become the
bankruptcy assets benefits.

Sufficiently clear.

Article 95

A request to detain the Bankrupt Debtor must be granted, if such request was based on reasons that the
Bankrupt Debtor intentionally does not fulfill its obligations as intended by Article 98, Article 110, or Article
121 paragraph (1) and paragraph (2).

Sufficiently clear.

Article 96

(1) In the event the Bankrupt Debtor attendance is required for an action related to the bankruptcy
assets, then if the Bankrupt Debtor is in the detention, the Bankrupt Debtor may be taken from his
detention place upon instruction of the Supervisory Judge.
(2) The instruction as intended by paragraph (1) shall be carried out by the public prosecutors office

Sufficiently clear

Article 97

During the bankruptcy, the Bankrupt Debtor may not leave his domicile without permission from the
Supervisory Judge.

Sufficiently clear.

Article 98

Since his appointment, the Receiver must perform all efforts to protect the bankruptcy assets and to keep all
correspondences, documents, money, jewelry, securities, and other commercial papers by giving a receipt.

Sufficiently clear.

Article 99

(1) The Receiver may request for a condemnation against the bankruptcy assets to the Court through
the Supervisory Judge based on the reasons to protect the bankruptcy assets.
(2) The condemnation as intended by paragraph (1) shall be conducted by the bailiff at the place where
such bankruptcy assets is located with the attendance of 2 (two) witnesses one of whom shall be the
representation of the local Regional Government.

Paragraph (1)
Sufficiently clear.

Paragraph (2)
representation of the local Regional Government shall be the head of sub-district or head
of village or mentioned by other name.

Article 100

(1) The Receiver must make a recording of the bankruptcy assets by no later than 2 (two) days
after receiving the decision letter of his appointment as the Receiver.
(2) Recording of the bankruptcy assets can be held privately by the Receiver with the approval from the
Supervisory Judge.
(3) The temporary creditors committee members shall be entitled to attend the making of such
record.

Sufficiently clear.

Article 101

(1) Goods as intended by Article 98, must be included into the bankruptcy assets record.
(2) Goods as intended by Article 22 letter a, must be included into the minutes list attached to the record
as intended by Article 100.

Sufficiently clear.

Article 102

Soon after the bankruptcy assets record is made, the Receiver must make a list that states the nature,
amount of receivables and debts of bankruptcy assets, names and addresses of the Creditors along with the
amount of receivables of each Creditors.

Sufficiently clear.

Article 103

The bankruptcy assets record as intended by Article 100 and the list as intended by Article 102 shall be
placed at the Clerks Office of the Court by the Receiver to be sighted by any person without any charge.

Sufficiently clear

Article 104

(1) Based on the approval from the temporary creditors committee, the Receiver may continue the
business of Debtor who has been declared bankrupt notwithstanding a cassation or reconsideration
was filed against the decision of bankruptcy declaration.
(2) If in the bankruptcy, a creditor committee was not appointed, the Receiver shall require a permission
from the Supervisory Judge to continue the business as intended by paragraph (1).

Paragraph (1)
See Article 84.

Paragraph (2)
Sufficiently clear.

Article 105

(1) The Receiver shall be authorized to open letters and telegrams addressed to the Bankrupt Debtor.
(2) Letters and telegrams which are not related to the bankruptcy assets must be immediately delivered
to the Receiver.
(3) The company that delivers letters and telegrams shall deliver the letters and telegrams addressed to
the Bankrupt Debtor.
(4) All complaint and objection letters related to the bankruptcy assets shall be addressed to the
Receiver.

Based on Article 24 and Article 69, as from the bankruptcy decision was pronounced, all Debtors
authorities to control and manage the bankruptcy assets including to obtain information concerning
bookkeeping, records, bank accounts, and Debtors savings from the banks concerned shall
transferred to the Receiver.

Article 106

The Receiver shall be authorized according to the condition to provide a sum of money stipulated by the
Supervisory Judge for the Bankrupt debtor and his family living cost.

Sufficiently clear.

Article 107

(1) Upon the approval of the Supervisory Judge, the Receiver may assign the bankruptcy assets insofar
as it is require to cover the bankruptcy expenses or if his detention shall cause losses to the
bankruptcy assets, notwithstanding a cassation or reconsideration was filed against the bankruptcy
decision.
(2) The provisions as intended by Article 185 paragraph (1) shall be applicable to paragraph (1).

Sufficiently clear.

Article 108

(1) Money, jewelry, securities, and other commercial paper must be kept by the Receiver itself unless
the Supervisory Judge determines otherwise.
(2) Cash that is not required for bankruptcy assets settlement, must be kept by the Receiver in bank for
the interest of the bankruptcy assets upon obtaining permission from the Supervisory Judge.

Kept by the Receiver itself shall mean without prejudice to the possibility that such securities or
commercial papers are kept by the custodian, however the responsibility remains at the name of the
Bankrupt Debtor. Such as, deposit in the name of he Receiver, qq Bankrupt Debtor.

Article109

The Receiver after requesting advice from the temporary creditors committee, if any, and with permission
from the Supervisory Judge, shall be authorized to organize an amicable settlement in order to terminate the
ongoing disputes or to prevent disputes from occurring.

amicable settlement in this Article shall mean the ongoing case in the Court.

Article 110

(1) The Bankrupt Debtor shall be obligated to appear before the Supervisory Judge, the Receiver, or the
creditors committee if he have been summoned to provide information.
(2) In the event that spouse was declared bankrupt, the spouse who has been declared bankrupt must
provide information concerning all actions they respectively performed against jointly assets.

Sufficiently clear.

Article 111

In the event of bankruptcy of a legal entity, the provisions as intended by Article 93, Article 94, Article 95,
Article 96, and Article 97 shall only apply to the management of such legal entity, and the provisions of
Article 110 paragraph (1) shall apply to the management and commissioners.

Commissioners shall include supervisory board.
Article 112

At the request and expense of each Creditor, the Clerk shall be obligated to provide copies of letters
provided at the Clerk Office to be sighted by whom may be concerned.

Sufficiently clear.

Section Five
Verification of Receivables
Article 113

(1) By no later than 14 (fourteen) days after the decision of bankruptcy declaration is pronounced, the
Supervisory Judge must stipulate:
a. due date for submission of claims;
b. due date for tax verification to determine the amount of tax obligation in accordance with the
taxation laws and regulations;
c. day, date, time and place for Creditors meeting for the verification of receivables.
(2) Time period between dates as intended by paragraph (1) letter a and letter b shall be at the shortest
14 (fourteen) days.

Sufficiently clear.

Article 114

The Receiver at the latest 5 (five) days upon the stipulation as intended by Article 113 shall be obligated to
notify such stipulation to all Creditors whose addressed were known through letters and to announce it at
least in 2 (two) daily newspaper as intended by Article 15 paragraph (4).

Sufficiently clear.

Article 115

(1) All Creditors shall be obligated to deliver each of their receivables to the Receiver accompanied with
their calculation or other written information showing the nature and amount of receivables, along
with their evidences or copies thereof, and a statement whether or not such Creditors retain
privileges rights, pledge, fiduciary guarantee, security rights, mortgage, other rights on securities
over properties, or rights to retain goods.
(2) upon delivery of receivables as intended by paragraph (1), the Creditors shall be entitled to request
receipts from the Receiver.

Sufficiently clear.

Article 116

(1) The Receiver shall be obligated to:
a. verify the calculation of receivables delivered by the Creditors with the record that has been
made before and the information from the Bankrupt Debtor; or
b. negotiate with the Creditors if there are any objection against the accepted invoices.
(2) The Receiver as intended by paragraph (1) shall be entitled to request the Creditors to submit letters
that have not yet been delivered, including to show the original notes and evidence letters.

Sufficiently clear

Article 117

The Receiver shall be obligated to include the approved receivables into a list of temporary receivables
whichwere acknowledged, while for the denied receivables including their reasons shall be included into a
separate list.

Sufficiently clear.

Article 118

(1) In the list as intended by Article 117, it shall be added with notes on each receivable whether based
on the Receivers opinion, the receivables concerned shall be privileged or secured with pledge,
fiduciary guarantee, security right, mortgage, other rights on securities over properties, or the rights
to retain goods for the respective receivables which may be implemented.
(2) If the Receiver only denies the existence of a pre-emptive right or right to retain goods, the
receivables concerned must be included into the list of temporary acknowledged receivables along
with the Receivers notes concerning such rebuttals and their reasons.

Sufficiently clear.

Article 119
The Receiver shall be obligated to provide copies from each of the list as intended by Article 117 at the Clerk
Office for 7 (seven) days before the verification of receivables, and everyone may sight it without charge.

Sufficiently clear.

Article 120

The Receiver shall be obligated to notify the known Creditor through letters concerning the existence of the
list as intended by Article 119 along with the summon to attend a meeting of receivables verification by
mentioning plan for amicable settlement if it has been delivered by the Bankrupt Debtor.

Sufficiently clear.

Article 121

(1) The Bankrupt Debtor shall be obligated to attend on his own in the meeting of receivables
verification, so that he can provide information requested by the Supervisory Judge concerning the
cause of bankruptcy and the condition of bankruptcy assets.
(2) Creditors may request information from the Bankrupt Debtor concerning matters explained through
the Supervisory Judge.
(3) Inquiries asked to the Bankrupt Debtor and answers given by him, must be recorded in the minutes.

Sufficiently clear.

Article 122

In the event that a legal entity is declared bankrupt, all obligations as intended by Article 121 paragraph (1)
and paragraph (2) shall be the responsibility of the management of such legal entity.

Sufficiently clear.

Article 123

In the meeting as intended by Article 121, Creditors may appear own their own or represented by their
proxies.

Proxies as intended in this Article were not proxies as described in Article 7 and for the drawing up of
such power of attorney shall apply the laws and regulations from the country where such power of
attorney was made.

Article 124

(1) In the meting as intended by Article 121, the Supervisory Judge shall read out the list of temporary
acknowledged receivables and the list of receivables denied by the Receiver.
(2) Each Creditor whose name is listed in the list of receivables as intended by paragraph (1) may
request the Receiver to provide information concerning each receivable and its allocation in the list,
or may deny the accuracy of such receivable, an existence of pre-emptive right, rights to retain
goods or may approve the Receivers rebuttal.
(3) The Receiver shall be entitled to revoke his temporary acknowledgement or rebuttal, or insist that the
Creditors to affirm under oath concerning the accuracy of those receivables which were not denied
by the Receiver or by one of the Creditor.
(4) In the event the initial Creditors have passed away, their successors shall be obligated to explain
under oath that they were with good faith believe that such receivables are exist and have not been
paid.
(5) In the event that it is deemed necessary to postpone the meeting, the Supervisory Judge shall
determine the next meeting which shall be held in the period of 8 (eight) days after the meeting is
postpone, without a summon.

Sufficiently clear.

Article 125

(1) Pronouncement of oath as intended by Article 124 paragraph (3) and paragraph (4) shall be
obligated to be performed by the Creditors themselves or theirs representatives specially authorized
for such purposes, either in the said meeting or on another day which has been determined by the
Supervisory Judge.
(2) In the event the Creditors that were ordered to pronounce the oath do not attend or were not
represented in the meeting, then the Clerk shall be obligated to notify the Creditors concerning the
order to pronounce oath and the day that was determined to pronounce the oath.
(3) The Supervisory Judge shall be obligated to provide statement letters to the Creditors concerning
oath that has been pronounced, unless such oath was pronounced in the Creditors meeting, then it
must be recorded in minutes of the meeting concerned.

Paragraph (1)
Power of Attorney as described in this paragraph may be in the form of authentic or privately
drawn up deed.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Article 126

(1) Receivables that were not denied must be shifted into the list of acknowledged receivables, which
were included into the minutes of meeting.
(2) In the event of receivables in the form of bearer letters or substitute letters, the Receiver shall record
his acknowledgement on the letters concerned.
(3) Receivables that should be affirmed under oath as instructed by the Receiver, shall be accepted with
conditions, until the time it is surely accepted after the oath has been pronounced at the time as
(4) Minutes of meeting shall be signed by the Supervisory Judge and the substitute clerk.
(5) Acknowledgement of the receivables recorded in the minutes of meeting shall have binding legal
force in the bankruptcy and its cancellation cannot be claimed by the Receiver, unless based on
reason of fraud.

Sufficiently clear.

Article 127

(1) In the event of a rebuttal and the Supervisory Judge is unable to settle the dispute between both
parties, although such dispute has been filed to the court, the Supervisory Judge shall order both
parties to settle such dispute in court.
(2) The advocates representing the parties concerned must be the advocates as intended in Article 7.
(3) The dispute as intended in paragraph (1) shall be simply examined.
(4) In the event that the Creditor requesting verification of claim does not appear at the stipulated
hearing, such creditor is therefore deemed to have revoked his request and in the event the party
that performed the rebuttal does not appear, then the concerned is deemed to have released his
rebuttal, and the judge must acknowledge the claim concerned.
(5) The creditor who does not file a rebuttal at the verification meeting, is not authorized to join himself
or conduct an interference in the case concerned.

Paragraph (1)
What is meant by court in this article is the district court, court of appeals, or Supreme
Court.

Paragraph (2)
Sufficiently clear

Paragraph (3)
Sufficiently clear

Paragraph (4)
Sufficiently clear

Paragraph (5)
Sufficiently clear

Article 128

(1) Examination towards rebuttal filed by the Receiver shall be deferred for the interest of law by ratifying
the reconciliation in the bankruptcy, unless if the case correspondences have been delivered to the
judge to be decided with terms that:
a. in the event the claims are accepted then the claims are deemed to be acknowledged in the
bankruptcy;
b. the case expenses shall be borne by the Bankrupt Debtor.
(2) The Debtor may take over a deferred case as intended in paragraph (1) as substitute Receiver
based on case correspondence as intended in paragraph (1), with a representation of an advocate.
(3) If the take over as intended in paragraph (2) does not occur, then the opposing party is entitled to
summon the Debtor to take over the case.
(4) If the Debtor does not appear, an in absentia decision may be imposed according to the Civil
Procedural Law.
(5) In the event that such rebuttal is filed by a participating Creditor after the reconciliation decision
ratification in the bankruptcy obtains a permanent legal force, the case may be continued by the
parties only to request the judge to resolve the case expenses.

Paragraph (1)
Sufficiently clear

Paragraph (2)
What is meant by an advocate in this paragraph is advocate as described in Article 7.

Paragraph (3)
Sufficiently clear

Paragraph (4)
Sufficiently clear

Paragraph (5)
Sufficiently clear

Article 129

The Creditor whose claims are challenged is not obliged to submit more evidences to affirm such claims
other than the actual evidences supposed to be submitted to the Bankrupt Debtor.

Sufficiently clear

.
Article 130

(1) If the Creditor whose claims are challenged does not appear before the meeting, within the period of
7 (seven) days after the Creditors non-attending, the bailiff must notify with official letter concerning
the filing of the rebuttal.
(2) In the event that the Creditor disputed the rebuttal as intended in paragraph (1), the Creditor may not
use as an excuse that there were no notification in the said case.

A wise Creditor is supposed to check on his own to the Clerk and Receivers concerning verification
of its claims.

Article 131

(1) The Supervisory Judge may receive with conditions the rebutted claims up to an amount stipulated
by him.
(2) In the event that the ranking of the claims is being challenged, the Supervisory Judge may
acknowledge such ranking with conditions.

Sufficiently clear

Article 132

(1) The Bankrupt Debtor is entitled to challenge the acceptance of claims either entirely or partially or to
challenge the level of claims by providing simple reasons.
(2) Rebuttal as intended in paragraph (1) shall be recorded in the minutes of meeting along with its
reasons.
(3) Rebuttal as intended in paragraph (2) does not block the acknowledgement of claims in the
bankruptcy.
(4) Rebuttal without any reasons or which does not address the whole claims but does not expressly
state the part that is being acknowledged and challenged, will not be considered as a rebuttal.

Sufficiently clear

Article 133

(1) Claims that are submitted to the Receiver after the expiry of the period as intended in Article 113
paragraph (1), provided that they are submitted by no later than 2 (two) days before the day of the
verification meeting is held, shall be verified if there is a request without any objection at the meeting,
either from the Receiver or from any Creditors attending the meeting.
(2) Claims submitted after the expiry of the period as intended in paragraph (1), shall not be verified.
(3) The provision on time period as intended in paragraphs (1) and (2) shall not be applicable if the
Creditor domiciles outside the jurisdiction of the Republic of Indonesia which become an impediment
to report the matter any sooner.
(4) In the event that the objection was filed as intended in paragraph (1) or if a dispute occurs on
whether or not an impediment exists as intended in paragraph (3), the Supervisory Judge shall adopt
a decision after requesting advices from the meeting.

Sufficiently clear

Article 134

(1) Verification over claims shall not be performed towards interest on debts arising after the decision of
bankruptcy declaration is pronounced, unless and only insofar as it is secured by pledge, fiduciary
guarantee, security right, mortgage, or collateral right on other properties.
(2) Pro memory [?] claims verification shall be conducted towards interest which is secured by collateral
right as intended in paragraph (1).
(3) If the interest concerned cannot be paid from the result of the sale of goods serving as collateral, the
Creditor concerned cannot exercise his rights arising from the verification of claims.

Sufficiently clear

Article 135

Claims with cancelled conditions shall be verified for the whole amount without prejudice to the effect of the
cancelled conditions if such conditions are fulfilled.

Sufficiently clear

Article 136

(1) Claims with postponement conditions may be verified for its value at the time the decision of the
bankruptcy declaration is pronounced.
(2) In the event that the Receiver and Creditor cannot agree on the method of verification, the claims
shall be acknowledged for the entire amount.

Sufficiently clear

Article 137

(1) Claims that has no exact time of collection or which allows right to acquire payment periodically, shall
be verified for its value at the time the decision of bankruptcy declaration is pronounced.
(2) All claims that can be collected within 1 (one) year after the date of the decision of bankruptcy
declaration is pronounced, shall be treated as claim that can be collected at the said date.
(3) All claims that can be collected after 1 (one) year after the date of the decision of bankruptcy
declaration is pronounced, shall be verified for values which valid 1 (one) year after the date of the
decision of bankruptcy declaration is pronounced.
(4) In calculating the claims value as intended in paragraphs (2) and (3), the following must be
observed:
a. time and terms of payment installment;
b. benefit that may be acquired; and
c. the amount of interest if it is agreed.

Sufficiently clear

Article 138

The Creditor whose claims are secured with pledge, fiduciary guarantee, security right, mortgage, collateral
right on other properties, or has a privileged rights on a certain goods in the bankrupt asset and can prove
that a part of such claims may not be repaid in full from the sale proceeds of goods serving as collateral, may
request that the rights of unsecured creditors on the part of such claims be granted to him, without prejudice
to the right to be given a priority over goods that have become collateral on his claims.

Sufficiently clear

Article 139

(1) Claims which value is indefinite, uncertain, not stated in the currency of the Republic of Indonesia or
is not stipulated at all in monetary value, shall be verified according to their estimated values in the
currency of the Republic of Indonesia.
(2) The determination of claim values into the currency of the Republic of Indonesia as intended in
paragraph (1) shall be made on the date of the decision of bankruptcy declaration is pronounced.
(3) The determination of claims values into the currency of the Republic of Indonesia for claims owned
by the Creditor as intended in Article 55 paragraph (1) shall be conducted on the execution date of
collateral goods by using Middle Exchange Rate of Bank Indonesia.

Paragraph (1)
Sufficiently clear

Paragraph (2)
Sufficiently clear

Paragraph (3)

Middle Exchange Rate of Bank Indonesia shall be calculated from the Transaction Rate of
Bank Indonesia which is daily announced, with calculation:

Bank Indonesia Selling Rate + Bank Indonesia Buying Rate
2

Article 140

(1) Claims on order [?] may be verified by recording such letter without mentioning the bearers
name or by recording the name of the bearer.
(2) Each of the claims on order [?] that is being verified without mentioning the bearers name as
intended in paragraph (1) shall be deemed as Creditors own claims.

Sufficiently clear

Article 141

(1) Creditor which claims is secured by a guarantor may file a verification of claims after it is being
reduce with payment accepted from the guarantor
(2) The guarantor is entitled to file a verification in an amount as much as the payment that has been
paid to the Creditor.
(3) apart from the rights as intended in paragraph (2), the guarantor may accept conditionally in he
verification of the amount that has not been paid by the guarantor and it is not verified by the
Creditor.

Sufficiently clear

Article 142

(1) In the event that there are mutually guaranteeing Debtors and one or more Debtors is declared
bankrupt, the Creditor may submit his claims to the Debtor which has been declared bankrupt or to
each of the Debtors declared bankrupt until all of their claims are paid.
(2) Each mutually guaranteeing Debtor who has rights to claim for compensation from the bankrupt
asset of the other declared bankrupt Debtor, can be accepted conditionally in the verification if the
Creditor does not make his own verification.
(3) If the bankrupt asset of all mutually guaranteeing Debtors exceeds 100% (one hundred percent) of
the total receivables, the excess of assets shall be divided between the mutually guaranteeing
Debtors according to the legal relationship among them.

Sufficiently clear

Article 143

(1) After the verification of claims is completed, the Receiver shall provide a report concerning the
bankrupt asset condition, and furthermore shall provide Creditors with all information requested by
them.
(2) After the meeting is completed, the report as intended in paragraph (1) along with the minutes of
claims verification meeting shall be provided in the Clerk Office and in the Receivers office.
(3) A fee shall be charged for obtaining copies of letters as intended in paragraph (2).
(4) After the minutes of meting as intended in paragraph (2) is provided, the Receiver, Creditor, or
Bankrupt Debtor may request to the Court that such minutes of meeting is revised, if from the
documents concerning Bankruptcy contained errors in the minutes of meeting.

Sufficiently clear

Section Six
Reconciliation

Article 144

The Bankrupt Debtor is entitled to offer a reconciliation to all Creditors.

Sufficiently clear

Article 145

(1) If the Bankrupt Debtor submits a composition plan and by no later than 8 (eight) days before the
claims verification meeting provide such composition plan at the Courts Clerk Office so that it can be
viewed by any persons concerned without any charge, such composition plan must be discussed
and resolved immediately after the verification of claims is completed, except in cases stipulated in
Article 147.
(2) At the same time with the delivery of the composition plan as intended in paragraph (1) to the Courts
Clerk Office, then a copy of the composition plan shall be delivered to each member of the temporary
committee of creditors.

Sufficiently clear

Article 146

Each of the Receiver and the temporary creditors committee shall give written opinion on the composition
plan at the meeting as intended in Article 145.

Sufficiently clear

Article 147

Discussion and resolution concerning composition plan as intended in Article 145 shall be postponed until
the subsequent meeting which date shall be stipulated by the Supervisory Judge by no later than 21 (twenty
one) days thereafter, in the event:
a. if in the meeting a permanent creditors committee is appointed which members do not consist of the
same person as the temporary creditors committee, while to the majority of Creditors desired from
the permanent creditors committee a written opinion on such proposed composition plan; or
b. the composition plan is not provided at the Courts Clerk Office at the stipulated time, while the
majority of Creditors present wishes the postponement of the meeting.

Sufficiently clear

.
Article 148

In the event that the discussion and the voting concerning the composition plan as set forth in Article 147 is
postponed until the next meeting, the Receiver within 7 (seven) days after the last meeting must notify all
acknowledged or temporary acknowledged Creditors who were not present at the claims verification meeting
with a letter containing the brief content of such composition plan.

Sufficiently clear
Article 149

(1) The Creditors holding pledge, fiduciary guarantee, security right, mortgage, or collateral right on
other properties and the privileged Creditors, including Creditors whose priority rights that are
challenged, may not issue a vote related to the composition plan, unless if they have released their
rights to be prioritized for the interest of the bankrupt asset prior to the implementation of voting on
such composition plan.
(2) After the release of rights as intended in paragraph (1), such Creditors become unsecured Creditors,
even if such composition plan is not accepted.

Sufficiently clear

Article 150

The Bankrupt Debtor is entitled to give information concerning the composition plan and to defend and
change such composition plan during the negotiation.

Sufficiently clear

Article 151

The composition plan shall be accepted if it is approved in the creditors meeting by more than 1/2 (one-half)
of the total unsecured creditors present in the meeting and whose right are acknowledged or temporarily
acknowledged, representing no less than 2/3 (two-third) of the total unsecured claims of acknowledged or
temporarily acknowledged unsecured creditors or their proxies present in the aforementioned meeting.

Approved shall mean the approval of the attending Creditors who firmly stated so in the said
Creditors Meeting.
In the event the attending Creditors did not use their right to vote, their vote will count as disagree
vote as intended in Article 87 paragraph (2).

Article 152

(1) In the event that more than 1/2 (one-half) of the creditors present in the creditors meeting and
representing no less than 1/2 (one-half) of the total claims of the creditors having voting right agree
to accept the composition plan, the second voting shall be conducted within 8 (eight) days following
the first voting, without requiring summons.
(2) In the second voting, the creditors shall not be bound to the vote they cast in the first voting.

Sufficiently clear

Article 153

Later changes, either regarding the number of creditors and the amount of claims, shall have no effect to the
validity of the acceptance or rejection of the composition plan.

Sufficiently clear

Article 154

(1) The minutes of the meeting shall include the following matters:
a. the content of the composition plan;
b. the names of creditors present and entitled to cast votes and to appear;
c. the vote cast;
d. the result of the voting; and
e. all matters took place in the meeting.
(2) The minutes of the meeting shall be signed by the Supervisory Judge and the substitute Clerk.
(3) Any person having interests can freely inspect the minutes of the meeting as intended in paragraph
(1) made available by no later than 7 (seven) days following the adjournment of the meeting at the
Courts Clerk Office.
(4) A fee shall be charged for obtaining copies of the minutes of meeting as intended in paragraph (3).

Sufficiently clear

Article 155

Creditors who have voted in favor of the composition plan or the Bankrupt Debtor may request the Court to
make correction to the minutes of meeting within 8 (eight) days following the availability of the minutes of
meeting as intended in Article 154 paragraph (3), if from the documents concerning the composition plan
meeting it is found that the Supervisory Judge has incorrectly deemed the aforementioned composition as
being rejected.

Sufficiently clear

Article 156

(1) In the event that the composition plan is accepted, prior to the adjournment of the meeting, the
Supervisory Judge shall stipulate the day for a Court hearing where the Court will decide whether or
not the aforementioned composition plan will be ratified.
(2) In the event of mistakes as intended in Article 155, the determination of the hearing day shall be
conducted by the Court and the Receiver shall notify the Creditors of the determination of the
hearing day by mail.
(3) The Court hearing shall be conducted at the earliest 8 (eight) days and at the latest 14 (fourteen)
days after the acceptance of the composition plan in the voting meeting or after the issuance of
Court decision in the event of mistakes as intended in Article 155.

Sufficiently clear

Article 157

During the session, creditors are allowed to submit reasons to the Supervisory Judge which cause them to
want the rejection of the composition plan ratification.

Sufficiently clear

Article 158

(1) On the stipulated day, the Supervisory Judge shall give a written report in a public hearing, while the
creditors, either themselves or their proxies, can explain the reasons which cause them to want or
reject the ratification of the composition plan.
(2) The Bankrupt Debtor shall be entitled to convey his reasons to defend his interests.

Sufficiently clear

Article 159

(1) In the session as intended in Article 154 or by no later than 7 (seven) days following the date of the
aforementioned session, the Court must render decision along with the reasons.
(2) The Court must reject the ratification of the composition in the following events:
a. the Debtors assets, including any goods on which rights of withholding goods are exercised,
are considerably larger than the amount agreed in the composition plan;
b. the implementation of the composition is not sufficiently guaranteed; and/or
c. the composition is reached based on fraud, or conspiracy with one or more creditors, or due
to any other dishonest efforts and without taking into account whether the Debtor or other
parties have cooperated to achieve this matter.

Sufficiently clear

Article 160

(1) In the event that the ratification is rejected, both the creditors approving the composition and the
Bankrupt Debtor may file an appeal within 8 (eight) days following the announcement of the Court
decision.
(2) In the event that the ratification of the composition is granted, within 8 (eight) days following the date
of the announcement of the aforementioned ratification, an appeal can be filed by:
a. the creditors who voted against the composition or who were absent at the voting;
b. the creditors who voted in favour of the composition after having knowledge that the
aforementioned composition has been reached based on the reasons as intended in Article
159 paragraph (2) letter c.

Sufficiently clear

Article 161

(1) An appeal against the Court decision as intended in Article 160 shall be conducted in accordance
with the provisions as intended in Article 11, Article 12 and Article 13.
(2) The provisions as intended in Article 158 except provisions regarding the Supervisory Judge, and
Article 159 paragraph (1), shall also be applicable in the appeal examination as intended in
paragraph (1).

Sufficiently clear

Article 162

Ratified composition shall be applicable for all creditors who have no priority rights, without any exception, by
not taking into account whether or not they have submitted themselves in the bankruptcy.

Sufficiently clear

Article 163

In the event that the composition or ratification is rejected, the Bankrupt Debtor can no longer offer
composition over the said bankruptcy.

Sufficiently clear

Article 164

Decision regarding composition ratification which has obtained a permanent legal force shall form an
enforceable legal basis which can be executed against the debtor and all persons guaranteeing the
implementation of the composition in connection with the acknowledged claims insofar they are not denied
by the Bankrupt Debtor according to Article 132 as included in the minutes of the claims verification meeting.

Sufficiently clear

Article 165

(1) Even though there has been a composition, the Creditors shall retain their rights against the
guarantors and among the Debtors.
(2) The Creditors rights on the assets of the third parties remain owned by the Creditors, as if there has
been no composition.

Sufficiently clear

Article 166

(1) In the event that the ratification of the composition has obtained a permanent legal force, the
bankruptcy shall cease.
(2) The Receiver shall announce the composition as intended in paragraph (1) in the State Gazette and
in at least 2 (two) daily newspapers as intended in Article 15 paragraph (4).

Sufficiently clear

Article 167

(1) After the ratification of the composition has obtained a permanent legal force, the Receiver shall
conduct an accountability report to the Debtor before the Supervisory Judge.
(2) In the event that the composition does not stipulate otherwise, the Receiver shall return to the Debtor
all goods, money, books and documents included in the bankruptcy assets by receiving a legal
receipt.

Sufficiently clear

Article 168

(1) The amount of monies which are the right of the Creditors which has been verified and
acknowledged based on the privileged rights, as well as the bankruptcy expenses must be delivered
directly to the Receiver, unless the debtor has given guarantee for it.
(2) Insofar as the obligation as intended in paragraph (1) has not been fulfilled, the Receiver must
withhold all goods and monies included as the bankruptcy assets.
(3) In the event that after the lapse of 30 (thirty) days following the date of the composition ratification
decision obtains a permanent legal force and the Debtor does not fulfill his obligation as intended in
paragraph (1), the Receiver must make full payment from the available bankruptcy assets.
(4) The amount of monies as intended in paragraph (1) and the portion which must be distributed to
each of the Creditors by virtue of their privileged rights shall be stipulated by the Supervisory Judge,
if necessary.

Paragraph (1)
Sufficiently clear

Paragraph (2)
Sufficiently clear

Paragraph (3)
Sufficiently clear

Paragraph (4)
Stipulation by the Supervisory Judge is necessary if the Debtor, Receiver and Creditors fail
to reach into a consensus on the distribution.

Article 169

In the event that claims which privileged rights are conditionally acknowledged, the obligation as intended in
Article 168 shall be limited to the granting of guarantee and in the event that the aforementioned grant of
guarantee is not fulfilled, the Receiver shall only be obligated to provide a reserved amount from the
bankruptcy assets in the amount of the aforementioned privileged right.

Sufficiently clear

Article 170

(1) Creditors may ask for the cancellation of a ratified composition if the Debtor fails to fulfill the content
of such composition.
(2) The Debtor must prove that he has fulfilled the composition.
(3) The Court shall have the authority to grant alleviation to the Debtor to fulfill his obligation by no later
than 30 (thirty) days after the announcement of the decision for granting such alleviation.

Paragraph (1)
Sufficiently clear

Paragraph (2)
Sufficiently clear

Paragraph (3)
Alleviation can only be given 1 (one) time in the entire process

Article 171

A claim to cancel the composition must be submitted and stipulated in the same manner as stipulated in
Article 7, Article 8, Article 9, Article 11, Article 12 and Article 13 for application of bankruptcy declaration.

Sufficiently clear

Article 172

(1) In the decision that cancels such composition, an order to re-open the bankruptcy is included, with
an appointment of a Supervisory Judge, Receiver, and members of the creditors committee, if in the
previous bankruptcy has formed such committee intended.
(2) The Supervisory Judge, Receiver, and members of the committee as intended in paragraph (1) to
the farthest possible extent shall be appointed from those who previously have hold their position in
the aforementioned bankruptcy.
(3) The Receiver must inform and announce the decision as intended in paragraph (1) in the manner as
intended in Article 15 paragraph (4).

Sufficiently clear

Article 173

(1) In the event that the bankruptcy is re-opened, the provisions of Article 17 paragraph (1), Article 19,
Article 20, Article 21, Article 22, and the articles in the Parts Two, Three and Four in Chapter II of this
Law shall be applicable.
(2) The provisions regarding claims verification shall also be applicable, limited to the claims not yet
verified.
(3) Creditors whose claims have been verified must also be summoned to attend the claims verification
meeting and shall be entitled to deny claims which acceptance is requested.

Sufficiently clear

Article 174

Without prejudice to the application of Article 41, Article 42, Article 43 and Article 44, if there are reasons to
do so, all actions conducted by the Debtor within the time between the ratification of the composition and the
reopening of the bankruptcy shall be binding to the bankruptcy assets.

Sufficiently clear

Article 175

(1) Following the re-opening of the bankruptcy, composition can no longer be offered.
(2) The Receiver must forthwith start with the settlement of the bankruptcy assets.

Sufficiently clear

Article 176

In the event of the re-opening of a bankruptcy, the bankruptcy assets shall be distributed among the
Creditors in the following manner:
a. if the old Creditors and new Creditors have not received payments, the results of the bankruptcy
assets liquidation shall be divided pro-rata among them;
b. if the payments have been partly conducted to the old Creditors, the old Creditors and the new
Creditors shall be entitled to receive payments in accordance with the percentage already agreed
upon in the composition;
c. the old Creditors and the new Creditors shall be entitled to obtain payments pro-rata upon the
remaining of the bankruptcy assets after being deducted with the payments as intended by letter b
until the fulfillment of all acknowledged claims;
d. the old Creditors having obtained payments shall not be obligated to return the payments they have
already received.

Elucidation of Article 176:
Point a
Pro rata means payment in accordance to the respective amount of claims.
Point b
Partly means whichever parts
Point c
Sufficiently clear
Point d
Sufficiently clear

Article 177

The provisions as intended in Article 176 shall be applicable mutatis mutandis in the event that the Debtor is
once again declared bankrupt while at the time the party concerned has not fulfilled all obligations in the
composition.

Sufficiently clear

Part Seven
Settlement of the Bankruptcy Assets

Article 178

(1) In the event that a composition plan is not offered in the claims verification meeting, the offered
composition is rejected, or the ratification of composition is rejected based on the decision having
obtained permanent legal force, the bankruptcy assets shall be in an insolvent condition by law.
(2) The provisions as intended in Article 104 and Article 106 shall not be applicable, if there have been a
certainty that the company of the Bankrupt Debtor will not be continued by virtue of the following
articles or if the continuation of the aforementioned business shall be terminated.

See Elucidation of Article 57 paragraph (1)

Article 179

(1) In the event that composition plan is not offered in the claims verification meeting or if the offered
composition plan is rejected, the Receiver or the Creditors attending the meeting can propose that
the company of the Bankrupt Debtors be continued.
(2) In the event that there is a creditors committee and the proposal is submitted by the Creditors, the
creditors committee and the Receiver must give their advice regarding the aforementioned proposal.
(3) Upon the request of the Receiver or one of the Creditors attending the meeting, the Supervisory
Judge shall delay the discussion and decision making on the proposal, until a meeting stipulated by
no later than 14 (fourteen) days after the meeting.
(4) The Receiver must forthwith notify the Creditors not attending the meeting regarding the plan to hold
another meeting by mail containing such proposal and reminding them about the provisions as
intended in Article 119.
(5) In the meeting as intended in paragraph (4), a verification of claims submitted after the end of the
time frame mentioned in Article 113 paragraph (1) and have not been verified by virtue of Article 133
can also be conducted, if necessary.
(6) Against the claim as intended in paragraph (5), the Receiver must act as in accordance with Article
116, Article 117, Article 118, and Article 119.

Sufficiently clear

Article 180

(1) The proposal to continue the company as intended in Article 179 paragraph (1) must be accepted if
such proposal is approved by creditors representing more than 1/2 (one-half) of the total claims
which are acknowledged and provisionally accepted, which are not guaranteed with pledge right,
fiduciary guarantee, security right, mortgage, or other property collateral right.
(2) In the event that there is no creditors committee, the provisions as intended in Article 80 shall be
applicable.
(3) Minutes of the meeting must include the names of creditors attending the meeting, vote cast by each
creditor, the results of the voting, and all matters took place in such meeting.
(4) All persons having interests can freely inspect the minutes of the meeting as intended in paragraph
(3) which shall be made available by no later than 7 (seven) days following the adjournment of the
meeting at the Courts Clerk Office.

Sufficiently clear

Article 181

(1) In the event that within 8 (eight) days after the decision of composition ratification rejection obtains a
permanent legal force, the Receiver and Creditors submit a proposal to the Supervisory Judge to
continue the company of the Bankrupt Debtor, the Supervisory Judge must hold a meeting by no
later than 14 (fourteen) days after such proposal is submitted to the Supervisory Judge.
(2) The Receiver must invite creditors, by no later than 10 (ten) days prior to the meeting with letters
stating the proposal and reminding the Creditors on the provision as intended in Article 119.
(3) The Receiver must advertise the same summons in 2 (two) newspapers, as intended in Article 15
paragraph (4).
(4) The provisions as intended in Article 179 paragraphs (2), (5), and (6) and Article 180 shall also be
applicable.

Sufficiently clear

Article 182

Within 8 (eight) days after the adjournment of the meeting, if from the documents it is found that the
Supervisory Judge has incorrectly deemed the proposal has been rejected or accepted, the Receiver and
Creditors can ask the Court to once more declare that such proposal has been accepted or rejected.

Sufficiently clear

Article 183

(1) Upon the request of the Creditors or the Receiver, the Supervisory Judge can order that the
continuation of the company shall be terminated.
(2) In the event that there is a request as intended in paragraph (1), the creditors committee, if any, must
be heard and the Receiver must also be heard if such proposal is not submitted by the Receiver.
(3) The Supervisory Judge can also hear the Creditors and the Bankrupt Debtor.

Sufficiently clear

Article 184

(1) With due observance of the provisions in Article 15 paragraph (1), the Receiver must start the
settlement and sell all bankruptcy assets without necessarily to obtain approval or assistance from
the Debtor, in the following events:
a. proposal to manage the Debtors company is not submitted within the time frame as
regulated herein, or such proposal has been submitted but rejected; or
b. the management of the Debtors company is dismissed.
(2) In the event that the company is continued, the sale of assets included in the bankruptcy assets
which are not required for the continuation of the company can be conducted.
(3) The Bankrupt Debtor can be granted a few house furniture and its equipment, medical equipment
used for health or office furniture stipulated by the Supervisory Judge.

Sufficiently clear

Article 185

(1) All assets must be sold in public in accordance with the method stipulated in the regulations

(2) In the event that the sale in public is achieved, the sale can also be conducted in private with the
permission of the Supervisory Judge.

(3) With the approval of the Supervisory Judge, the Receiver shall decide the measures which must be
taken on all assets which are not forthwith or cannot be settled at all.

(4) The Receiver shall be obligated to pay the claims of the Creditors having the right to retain assets,
so that the assets can be returned and advantageous for the bankruptcy assets.

Sufficiently clear

Article 186

For the interest of the settlement of the bankruptcy assets, the Receiver may use the service of the Bankrupt
Debtor with compensation determined by the Supervisory Judge.

Sufficiently clear

Article 187

(1) After the bankruptcy assets are in insolvent condition, the Supervisory Judge may convene a
Creditors meeting on the day, hour and venue determined by him to necessarily hear the Creditors
regarding the manner of the bankruptcy assets settlement and if necessary to verify claims which will
be included after the end of the time frame as intended in Article 113 paragraph (1), and have not
been verified as intended in Article 133.

(2) Against the claims as intended in paragraph (1), the Receiver shall be obligated to act as intended in
Article 116, Article 117, Article 118, Article 119 and Article 120.

(3) The Receiver must announce the same summons in newspapers as intended in Article 15 paragraph
(4).

(4) The Supervisory Judge must stipulate the minimum time frame of 14 (fourteen) days between the
day of the summons and the day of the meeting.

Sufficiently clear

Article 188

If the Supervisory Judge is of the opinion that there is sufficient cash money, the curator shall be ordered to
conduct distribution to the verified creditors.

Sufficiently Clear

Article 189

(1) The curator must prepare a distribution list to be approved by the Supervisory Judge.
(2) The list as intended by paragraph (1) shall include details of revenues and expenditures including the
curators salary, the creditors names, the verified amount of each account receivable, and the
portion which must be received by the creditors.
(3) Concurrent creditors must be granted with the portion stipulated by the Supervisory Judge.
(4) Payments to creditors:
a. having privileged right, including those whose privileged rights are denied; and
b. the holders of pledge, fiduciary transfer, pledge right, mortgage or other property collateral
right, if they have not been paid in accordance with the provisions as intended by Article 55,
can be conducted from the results of the sale of assets to which the have privileged rights or
encumbered to them.
(5) In the event that the result of the assets sale as intended by paragraph (4) are not sufficient for
paying all account receivable of the prioritized creditors, they shall be positioned as concurrent
creditors for the shortfall thereof.

Sufficiently Clear

Article 190

The amount of the portion for creditors whose account receivable are conditionally accepted in the
distribution list shall be calculated based on the percentage of the entire amount of account receivable.

Sufficiently Clear

Article 191

All bankruptcy expenses shall be charged on every assets which are parts of the bankruptcy assets, except
the assets which according to the provisions as intended by Article 55 have been personally sold by creditors
holding pledge, fiduciary transfer, pledge right, mortgage or other property collateral right.

Sufficiently Clear

Article 192

(1) The distribution list approved by the Supervisory Judge must be provided at the Office of the Court
Clerk, while one copy of the aforementioned list must be provided at the curators office, so that they
can be perused by creditors during the time frame stipulated by the Supervisory Judge when the
aforementioned list is approved.
(2) The provision of the distribution list and the time frame as intended by paragraph (1) shall be
announced by the curator in newspapers as intended by Article 14 paragraph (4).
(3) The time frame as intended by paragraph (1) shall come into effect on the day and date when the
provision of the aforementioned distribution list is announced in newspapers as intended by
paragraph (2).

Sufficiently Clear

Article 193

(1) During the time frame as intended by Article 192 paragraph (1), creditors may resist against the
aforementioned distribution list by submitting a letter of objection along with the reasons thereof to
the Court Clerk, by receiving a proper receipt.
(2) The letter of objection as intended by paragraph (1) shall be enclosed to the distribution list.

Sufficiently Clear

Article 194

(1) In the event of a resistance, forthwith following the end of the time frame as intended by Article 192,
the Supervisory Judge shall stipulate the day to examine the aforementioned resistance in a session
open for public.
(2) Decision of session day issued by the Supervisory Judge shall be provided at the Office of the Court
Clerk and the copy thereof at the curators office, so that it can be perused by any person free of
charge.
(3) The impound officer must notify the aforementioned provision in writing to the resistor and the
curator.
(4) The session must be stipulated by no later than 7 (seven) days following the end of the time frame
stipulated by virtue of article 192 paragraph (3).
(5) In the open session as intended by paragraph (4), the Supervisory Judge shall give a written report,
while the curator and every creditors or their proxies may support or deny the aforementioned
distribution list by conveying the reasons thereof.
(6) On the first session day or not later than 7 (seven) days later, the Court must grant decision along
with sufficient legal considerations.

Sufficiently Clear

Article 195

(1) Creditors whose account receivable have not been verified and creditors whose account receivable
have been verified for a very small amount according to their own report, may file resistance with the
provision that by no later than 2 (two) days prior to the resistance examination in a Court session:
a. the account receivable or a portion of the account receivable which are not yet verified shall
be submitted to the curator;
b. copies of the account receivable and the receipt from the curator shall be attached to the
letter of resistance;
c. application for verifying the aforementioned account receivable or a portion of the account
receivable shall also be submitted in the aforementioned resistance.
(2) The verification as intended by paragraph (1) conducted in the aforementioned session with the
stipulated method as intended by Article 120 and the succeeding articles shall be conducted before
the resistance examination is started.
.(3) In the event that the resistance is intended only to have the resistors account receivable verified,
and there is no resistance submitted by other person, the fee of the aforementioned resistance must
be borne by the aforementioned creditor filing resistance.

Sufficiently Clear

Article 196

(1) The curator and any creditor can appeal to the Supreme Court against the Court decision as
(2) The appeal against Court decision as intended by paragraph (1) shall be organized in accordance
with the provisions as intended by Article 11, Article 12 and Article 13.
(3) For the purpose of the examination on the appeal, the Supreme Court can summon the curator or
the creditor to be heard.
(4) The distribution list shall be binding due to the lapse of the time frame as intended by Article 192,
without any party filing resistance or resistance which have been overruled by the Court of Law.

Sufficiently Clear

Article 197

The Supervisory Judge must order the deletion of the recording of mortgage, pledge right or fiduciary
transfer encumbering the assets included in the bankruptcy assets, soon after the distribution list containing
the accountability of the sale of encumbered assets becomes binding.

Sufficiently Clear

Article 198

(1) Distribution allocated for creditors whose account receivable are temporarily acknowledged shall not
be granted insofar as there has not been any decision regarding their account receivable which has
become final and binding.
(2) In the event that the creditors are proven not to have any account receivable or their account
receivable are less than the same allocated for them, the money which previously allocated for them,
both entirely or partly, shall become the benefit of the other creditors.
(3) In the event that the portions allocated for creditors, whose priority rights are denied, exceed the
percentage of the portion which must be paid to the concurrent creditors, the aforementioned
portions must temporarily reserved until there is a decision regarding the aforementioned priority
rights.

Sufficiently Clear

Article 199

In the event that an asset having certain priority right, fiduciary transfer, pledge right, mortgage, or other
property collateral right, is sold after the aforementioned prioritized creditors have obtained the distribution as
intended by Article 184 in connection with Article 189 , at the time of any subsequent distribution, the results
of the aforementioned sale of asset shall be paid to them in the maximum amount of the value of the
prioritized rights after being deducted with the amount which has been received previously.

Sufficiently Clear

Article 200

(1) Creditors, whose due to their fault verify after the distribution, may obtain payment of a certain
amount deducted from the existing money, equal to the amount which have been received by other
acknowledged creditors.
(2) In the event that the creditors have prioritized right, they shall lose the aforementioned right upon the
proceeds of the sale of assets concerned, in the distribution list which have been previously
allocated for other creditors by prioritizing them.

Sufficiently Clear

Article 201

After the end of the time frame for inspecting the distribution list as intended by Article 192, or in the event of
the submission of resistance after the announcement of the decision of the aforementioned resistance case,
the curator must forthwith pay the allocated distribution.

Sufficiently Clear

Article 202

(1) Immediately after the account receivable of the verified creditors have been fully paid, or immediately
after the closing distribution list becomes binding, the bankruptcy shall be terminated, without
prejudice to the provision as intended by Article 203.
(2) the curator shall announce the termination of the bankruptcy as intended by Article 15 paragraph (4).
(3) The curator must present accountability regarding the management and settlement conducted by
him to the Supervisory Judge by no later than 30 (thirty) days following the termination of bankruptcy.
(4) All books and documents regarding the bankruptcy assets existing at the curator must be delivered
to the debtor by obtaining proper receipt.

Sufficiently Clear

Article 203

In the event that after the closing distribution is made, the distribution, which was previously reserved as
intended by Article 198 paragraph (3), is returned to the bankruptcy assets, or if in fact there is a property
from the bankruptcy assets, which at the time of settlement was unknown, upon the order of the Court, the
curator shall settle and distribute it based on the previous distribution list.

Sufficiently Clear

Part Eight
Legal Status of the Bankrupt Debtor After the End of the Settlement

Article 204

After the closing distribution list has become binding, creditors shall receive the execution right upon the
debtors assets concerning their unpaid account receivable.

Sufficiently Clear

Article 205

(1) Acknowledgment of an account receivable as intended by Article 126 paragraph (5) shall be legally
binding against the debtor.
(2) Excerpt from the minutes of the account receivable verification meeting drawn up in the form of
executable decision shall be the legal basis of the right executable to the debtor regarding
acknowledged account receivable.

Paragraph (1)
Sufficiently Clear

Paragraph (2)
drawn up in the form of executable decisions means summary of the minutes of meeting
which has executorial title.

Article 206

The provisions as intended by Article 205 shall not be applicable insofar as the account receivable
concerned are denied by the bankrupt debtor as intended by Article 131.

Sufficiently Clear

Part Nine
Bankruptcy of Inheritance

Article 207

Inheritance of a deceased person must be declared in bankruptcy, if one or more creditors file an application
for such purpose and can briefly prove that:
a. the deceased did not pay his debts during his life; or
b. at the time the person concerned passed away, his inheritance was not sufficient to pay his debts.

Sufficiently Clear

Article 208

(1) Application as intended by Article 207 must be submitted to the Court which jurisdiction covers the
most recent domicile of the deceased debtor.
(2) The beneficiaries must be summoned with the letters of the impound officer to be heard regarding
the aforementioned application.
(3) The summons as intended by paragraph (2) must be delivered to the last domicile of the deceased
debtor, without any obligation to mention the names of the respective beneficiaries, unless their
names are known.

Sufficiently Clear

Article 209

A bankruptcy decision shall by law cause the separation of the properties of the deceased person from the
properties of his beneficiaries.

Sufficiently Clear

Article 210

Application for a bankruptcy declaration must be submitted to the Court by no later than 90 (ninety) calendar
days after the debtor passes away.

Sufficiently Clear

Article 211

The provisions regarding composition as intended by Article 144 up to and including Article 177 shall not be
applicable to the bankruptcy of inheritance, unless the inheritance have been received entirely by the
beneficiaries

Sufficiently Clear

Part Ten
Provisions of International Law

Article 212

Creditors, who after the declaration of bankruptcy take the payment of the entire or a portion of their account
receivable from the properties included in the bankruptcy assets located outside the territory of the Republic
of Indonesia which are not bound to them with priority right, must indemnify all matters they have obtained to
the bankruptcy assets.

Sufficiently Clear

Article 213

(1) Creditors transferring all or a portion of their account receivable on the bankrupt debtor to the third
parties, with the intention that the third parties take the prioritized payments upon all or a portion of
their account receivable from the properties included in the bankruptcy assets located outside the
Indonesian territory must indemnify all matters they have obtained to the bankruptcy assets.
(2) Unless proven otherwise, all transfers of account receivable must be deemed as to have been
conducted with the provisions as intended by paragraph (1), if such transfers are conducted by
creditors and the aforementioned creditors are aware that bankruptcy declaration have been or will
be filed.

Paragraph (1)
Obligation to transfer over the bankrupt assets is in the amount of the payment submitted by
the creditors who receives the transfer of account receivables over the debtors assets
located abroad.

Paragraph 2
Sufficiently Clear

Article 214

(1) Any person transferring all or a portion of his account receivable or debts to third parties, which
accordingly obtain the opportunity to conduct debt set off outside the Indonesian territory not allowed
by this law, must indemnify to the bankruptcy assets.
(2) Article 213 paragraph (2) shall also be applicable to the matter as intended by paragraph (1).

Paragraph (1)
Obligation to transfer over the bankrupt assets is in the amount of the claims met and
acquired by the receiver of the debt or transfer of account receivables over the debtors
assets located abroad

Paragraph (2)
Sufficiently Clear

Part Eleven
Rehabilitation

Article 215

After the termination of bankruptcy as intended by Article 166, Article 202 and Article 207, the debtor or his
beneficiaries shall be entitled to apply for rehabilitation to the Court of Law issuing the bankruptcy
declaration.

rehabilitation is restoring Debtors name from bankrupt, by a Court decision stated the Debtor has
fulfilled its obligations.

Article 216

Petition for rehabilitation by the debtor or his beneficiaries shall not be granted, unless the petition is
attached with evidence stating that all acknowledged creditors have received satisfactory payments.

satisfactory payments means acknowledged Creditors will not conduct any more claim against
debtor even when they dont receive their entire amount.

Article 217

Petition for rehabilitation as intended by Article 216 must be announced in 2 (two) daily newspapers
appointed by the Court.

Sufficiently Clear:

Article 218

(1) Within 60 (sixty) days after the announcement of the rehabilitation application in 2 (two) daily
newspapers, any acknowledged creditor may submit objection to the aforementioned application by
submitting letter of objection along with the reasons thereof to the Office of the Court Clerk and the
Clerk must give proper receipt.
(2) Objection as intended by paragraph (1) can only be submitted if the requirements as intended by
Article 216 are not fulfilled.

Sufficiently Clear:

Article 219

After the lapse of the 60 (sixty) days time frame as intended by Article 218, despite whether or not objections
are submitted, the Court must grant or reject the aforementioned petition.

Sufficiently Clear:

Article 220

There shall be no opportunity for any legal action whatsoever against the Court decision as intended by
Article 219.

Sufficiently Clear:

Article 221

Decision granting the rehabilitation shall be announced in a session open for public and the aforementioned
decision must be recorded in the registry as intended by Article 20.

Sufficiently Clear:

Chapter III
SUSPENSION OF OBLIGATIONS FOR PAYMENT OF DEBT

FIRST SECTION
Suspension of Payment and its Consequences

Article 222

(1) Suspension of obligations for payment of debt is submitted by the Debtor with more than 1 (one)
Creditor or by the Creditor.
(2) A debtor who cannot and foresees that he will be unable to continue to pay his debts which are due
and payable, may apply for a suspension of obligation for payment of debt, for the purposes of
submitting a composition plan which includes an offer of payment of all or a part of the debt to the
unsecured creditors.
(3) A Creditor who foresees that the debtor will be unable to continue to pay his debts which are due
and payable, may apply that the debtor be granted a suspension of obligation for payment of debt,
for the purposes of submitting a composition plan which includes an offer of payment of all or a part
of the debt to the unsecured creditors.

Paragraph (1)
Sufficiently clear

Paragraph (2)
creditor means all creditor, namely concurrent creditor and privileged creditors.

Paragraph (3)
Sufficiently clear

Article 223

In the case that the debtor is a Bank, Security Company, Clearing and Securitization House, Storing and
Settlement House, Insurance Company, Reinsurance Company, Pension Fund, and State Owned Company
which business is public interest, suspension of obligations for payment of debt can only by filed by
institutions as intended by the provisions on Article 2 paragraph (3), (4), and (5).

See elucidation of Article 2 Paragraph (3), (4) and (5).

Article 224

(1) the petition for suspension of obligations for payment as intended by Article 222 shall be submitted to
the Court as intended by Article 3 signed by the petitioner and his attorney.
(2) In the case that the petitioner is the debtor, the petition for suspension of obligations for payment
must be accompanied by a list that stated the nature of debt, total of debt and the Debtor's debt
together with written evidence as appropriate.
(3) In the case that the petitioner is the creditor, the Court shall call the debtor through the debt collector
by registered express mail within 7 (seven) days before the court date.
(4) On the trial as intended in paragraph 3, the Debtor shall submit a list that stated the nature of debt,
total of debt and the Debtor's debt together with written evidence as appropriate and, if any,
composition plan.
(5) A composition plan as intended by paragraph 2 may be appended to the above mentioned petition.
(6) The provisions as intended by Article 6 paragraph (1), (2), (3) (4) and (5) shall
(7) Apply mutatis mutandis as procedures for submission of a petition for suspension of obligation for
payment of debt as intended by paragraph (1).

In the event that the debtor is a limited company then the petition of suspension of obligation for
payment of debt on their own initiative can only take place after obtaining consent of the
Shareholders meeting with quorum attendee and the validity of the decision in the same as required
to bankruptcy petition.

Article 225

(1) the petition as intended by Article 224 paragraph (1) together with its exhibits, if any, shall be filed
with the office of the Clerk, so that it may be inspected without charge by the public.
(2) In the case that the petitioner is the Debtor, the court shall grant a provisional suspension of
obligations for payment of debt within at least 3 (three) days after the date of the registration of the
petition as intended in Article 224 paragraph 1 (one) and shall designate a Supervisory Judge from
the judges of the Court and shall appoint 1 (one) or more administrators who together with the debtor
shall manage the estate of the debtor.
(3) In the case that the petitioner is the Creditor, the court shall grant a provisional suspension of
obligations for payment of debt within at least 20 (twenty) days after the date of the registration of
the petition and shall designate a Supervisory Judge from the judges of the Court and shall appoint 1
(one) or more administrators who together with the debtor shall manage the estate of the debtor.
(4) Immediately after the decision provisionally suspending obligations for payment of debt has been
announce, the Court through the administrator shall be obliged to summon the debtor and the known
creditors by registered letter or by courier to appear at a session to be held at the latest on the 45
(forty fifth) day counted from the granting of the decision provisionally suspending obligations for
payment of debt.
(5) In the case that the debtor failed to appear at the Court session as intended in paragraph (4), the
provisional suspension of obligation for payment of debt is terminated and the Court shall declare
bankruptcy against the Debtor on the same session.

Sufficiently Clear

Article 226

(1) The administrator shall be obliged to immediately announce the decision provisionally suspending
obligations for payment of debt in the State Gazette and 1 (one) or more daily newspaper designated
by the Supervisory Judge and such announcement shall also contain and invitation to attend at the
session which constitutes the next judges deliberation meeting the date, place and time of said
session, the name of the Supervisory Judge and the name and address of the administrator.
(2) If a composition plan has been submitted by the debtor during the announcement of the decision
provisionally suspending obligations for payment of debt , this fact shall be stated in said
announcement and such announcement shall be made at least 21 (twenty one) days before the date
of the planned session.

Elucidation of article 226
Sufficiently Clear

Article 227

The decision provisionally suspending obligations for payment of debt shall be effective from the
date of said decision provisionally suspending obligations for payment of debt is rendered an shall
continue until the date the session intended by Article 226 paragraph (1) is held.

Sufficiently Clear

Article 228

(1) on the day of the session as intended in Article 226 paragraph (1) the Court shall hear the debtor,
the Supervisory Judge, the administrator and the attending creditors their representative or their
attorneys who are appointed by powers of attorney.
(2) Every Creditors shall be entitled to attend said session as intended by paragraph (1), even though
the creditor concerned did not receive a summons to the session.
(3) If a composition plan is appended to the petition for provisional suspension of obligation for payment
of debt as intended by Article 224 paragraph (2) or has been delivered by the debtor before the
session, a vote may be taken on the composition plan if the provisions as intended in Article 267
have been met.
(4) Where the provisions as intended by paragraph (3) have not been met or if the unsecured creditors
are not yet able to cast their votes on the composition plan, then said creditors shall cast votes on
the petition of the debtor to be granted a permanent suspension of obligations for payment of debt
with the intention to enable the debtor the administrator and such creditors to consider and approve
a composition at a subsequent meeting or session.
(5) If a permanent suspension of obligations for payment of debt can not be decided by the Court as
intended by paragraph (4) within the intended time as intended by Article 225 paragraph (4) then the
debtor is declared bankruptcy.
(6) If the permanent suspension of obligations for payment of debt as intended by paragraph (4) is
approved, said suspension and extension thereof may not exceed 270 (two hundred seventy) days
from the announcement of the decision provisionally suspending obligations for payment of debt.

Paragraph (1)
Attorney means is not the same as in Article 7.

Paragraph (2)
Sufficiently clear

Paragraph (3)
Sufficiently Clear

Paragraph (4)
Creditors means concurrent creditors, separatist creditors, or other privileged creditors.

Paragraph (5)
Sufficiently clear

Paragraph (6)
Concurrent Creditor is the only one owning the right to decide whether the debtor will be granted
Suspension obligations for payment of debt, the Court only has the jurisdiction to stipulate it on the
basis of concurrent creditors agreement.

Article 229

(1) The Court decides on the granting of permanent suspension of obligations for payment of debt
including its renewal based on:
a. consent of over than 1/2 (half) of the number of attending concurrent creditor with
acknowledged or provisionally acknowledged right and representing at least 2/3 (two third) of
the entire outstanding claims acknowledged or provisionally acknowledged of the concurrent
creditors or their attorney who are attending the session; and
b. consent of over than 1/2 (half) of the number of attending creditor whose loans are secured
with acknowledged or provisionally acknowledged right and representing at least 2/3 (two
third) of the entire outstanding claims acknowledged or provisionally acknowledged of the
concurrent creditors or their attorney who are attending the session
(2) Any arising dispute between the administrator and concurrent creditor regarding the Creditor's right
to vote as intended in paragraph 1 point a will be decided by the Supervisory Judge.
(3) If the bankruptcy petition and the petition for suspension of obligations for payment of debt are
concurrently examined, then the petition for suspension of obligations for payment of debt must be
decided first.
(4) Petition for suspension of obligations for payment of debt submitted after the bankruptcy petition
must be decided first as intended in paragraph (3), shall be submitted on the first trial of the
bankruptcy examination session.

Sufficiently clear

Article 230

(1) If the temporary suspension of obligations for payment of debt is terminated because the creditors do
not agree to the granting of a permanent suspension of obligations for payment of debt or an
extension thereof has been granted but as of the end of the period referred to in Article 228
paragraph (6) an agreement has not been reached regarding the composition for composition, then
on the final day the Administrator must inform the Court, which must declare the Debtor bankrupt no
later than on the next day.

(2) The administrator shall be obligated to announce the matter mentioned in paragraph (1) in the daily
newspaper wherein the petition for suspension of obligations for payment of debt was published in line
with Article 226.

Elucidation of article 230
Paragraph (1)
Consent to the composition must be met at the latest on the 270
th
(two hundred and seventy
) day whereas the stipulation of the said consent can be granted afterwards.

Paragraph (2)
To the debtor, this is the consequence of this articles which decided that in the event when
suspension of obligation for payment of debt will be refused, consequently the creditor is
deemed bankrupt.

Article 231

(1) The court must appoint a Creditor Committee in the event that:
a. the petition for suspension of obligations for payment of debt includes debt of a complex
nature or involving a large number of creditors; or
b. the appointment is requested by creditors representing at least 1/2 (half) of the whole
acknowledged debt.
(2) In the implementation of its functions, the administrator must request and consider the
recommendations of the Creditor Committee.

Sufficiently Clear

Article 232

(1) The Clerk of the Court must draw up a general list which includes the following items for every
suspension of obligations for payment of debt:
a. date of the decision of the temporary suspension of obligations for payment of debt and date
of the adjudication the permanent suspension of obligations for payment of debt and
extension thereof;
b. excerpt from the Court decision stipulating the temporary as well as permanent suspension
of obligations for payment of debt and extension thereof;
c. names of the Supervisory Judge and Administrator appointed;
d. summary of the contents of the composition and ratification thereof by the Court;
e. termination of composition.
(2) Further provision regarding the form and contents of the aforesaid general list shall be stipulated by
the Supreme Court.
(3) The Clerk of the Court must make the general list mentioned in paragraph (1) available for public
perusal free of charge.

Sufficiently Clear

Article 233

(1) If requested by the Administrator, the Supervisory Judge may hear witnesses or order an inquiry by
experts to explain the circumstances surrounding the suspension of obligations for payment of debt,
and such witnesses shall be summoned in accordance with the provisions of the law of civil
procedure.
(2) In the event that witnesses fail to appear or refuse to take the oath or give testimony, provisions of
the Law of Civil Procedure shall apply.
(3) Husbands or wives, former husbands or wives, and biological family in a direct ascending as well as
descending line of the debtor may exercise their rights to be exempted from the obligation to bear
witness.

Expert means a person who is an expert on the matters.

Article 234

The administrator appointed as intended in Article 225 paragraph (2) must be independent and have no
conflict of interest with either the debtor or creditor.
Administrators as intended in paragraph 1 who are proven to fail to be independent will receive criminal or
civic sanction in accordance to the laws and regulations.
(1) Those who may become administrators as intended in paragraph (1), shall be:
a. individuals or civil entities domiciled in Indonesia, who posses special expertise required in
respect to managing the debtors assets;
b. registered with the ministry whose work and responsibilities includes laws and regulations;
(2) The Administrator shall be held personally responsible if any fault or negligence in the
implementation of his/her management duties causes loss to the debtors assets.
(3) The amount of the remuneration for the services of the administrator shall be determined by the
Court after the termination of the period of postponement of the debt repayment regulation based on
guidelines set forth by the ministry whose work and responsibilities includes laws and regulations
and must initially be paid preferentially from the debtors assets.

Sufficiently Clear

Article 235

(1) Toward the decision to grant the suspension of obligations for payment of debt, no legal actions can
be summons against it.
(2) The decision as intended in paragraph (1) must be announced in the manner described in Article
226.

Sufficiently Clear

Article 236

(1) In the event that more than one administrator is appointed, then in order to execute a valid and
binding action, the administrator shall require the approval of more than 1/2 (half) of the
administrators.
(2) In the event that there are equal numbers of votes in favor and against a decision, the action as
intended in paragraph (1) must obtain the approval of the Supervisory Judge.
(3) The Court may grant a request to replace the administrators at any time, after summoning and
hearing the administrators based on:
a. the recommendation of the Supervisory Judge;
b. the request of creditors and the aforementioned request may only be submitted if based on
the over 1/2 (half) of the attending creditors in the meeting of creditors;
c. the administrators own request;
d. the request of other administrators, if any.

Sufficiently Clear

Article 237

(1) In the decision granting the suspension of obligations for payment of debt the Court may include
provisions which are deemed necessary for the interests of the creditors.
(2) The Supervisory Judge may also at any time carry out the action mentioned in paragraph (1) insofar
as there is a permanent suspension of obligations for payment of debt, based on:
a. the initiative of the Supervisory Judge;
b. the request of the administrator; or
c. the request of one or more creditors.

Sufficiently Clear

Article 238

(1) If the suspension of obligations for payment of debt has been granted, the Supervisory Judge may
appoint one or more experts to conduct an inquiry and compile a report concerning the condition of
the debtors assets within a specified period and extension thereof which shall be determined by the
Supervisory Judge.
(2) The experts report as intended in paragraph (1) must include opinions accompanied by the full
reasons thereof concerning the condition of the debtors assets and the documents surrendered by
the debtor and the willingness and ability of the debtor to fulfill his obligations to the creditors, and
such report must as much as possible indicate the measures that must be taken in order to meet the
demands of the creditors.
(3) The experts must make the report as intended in paragraph (2) available at the office of the Clerk of
the Court public perusal free of charge, and no fee shall be charged for making such report available.
(4) The provisions as contained in Article 236 paragraph (3) shall apply mutatis mutandis to the experts.

Sufficiently Clear

Article 239

(1) Every 3 (three) months as from the decision to grant the suspension of obligations for payment of
debt is announced the administrator shall be obligated to report the condition of the debtors wealth,
and such report must also be made available at the office of the Clerk of the court as mentioned in
Article 238 paragraph (3).
(2) The reporting period as intended in paragraph (1) may be extended by the Supervisory Judge.

Sufficiently Clear

Article 240

(1) During the suspension of obligations for payment of debt, the debtor may not, without authorization
from the administrator, take any management or ownership actions on all or a portion of his/her
wealth.
(2) In the event that the debtor violates the provision set forth in paragraph (1), the administrator shall be
entitled to take any action necessary to ensure that the debtors assets are not damaged by the
debtors actions mentioned above.
(3) Those of the debtors obligations undertaken without the approval of the administrator which arises
after the commencement of the suspension of obligations for payment of debt, may only be charged
to the debtors assets insofar as such action benefits the debtors assets.
(4) Upon the approval of the administrator, the debtor may obtain loans from a third party only in order to
increase the value of the debtors assets.
(5) In the event that a collateral is required to obtain the loan referred to in paragraph 4, the debtor may
encumber his/her assets by a a pledge of right, fiduciary transfer, security right, mortgage, or
collateral right on other properties, insofar as the loan concerned has obtained the approval of the
Supervisory Judge.
(6) The a pledge of right, fiduciary transfer, security right, mortgage, or collateral right on other
properties on the debtors assets as intended in paragraph (5), may only be executed on the portion
of the debtors assets which have not yet been made a debt security.

Sufficiently Clear

Article 241

In the event that the debtor is married in a union of assets, then the debtors assets shall include all united
activa and passives.

Activa means all of Debtors assets, passiva means all of debtors debt.

Article 242

(1) During the suspension of obligations for payment of debt, the debtor may not be forced to settle
his/her debts as intended in Article 245 and any acts of execution that have commenced in order to
obtain debt settlement must be postponed.
(2) Unless an earlier date is stipulated by the Court based on the request of the administrator, all
security seizure already applied shall terminate and in the event that the debtor is detained, the
debtor must be released immediately after the decision of the permanent suspension of obligations
for payment of debt is announced or after the decision to ratify the composition gains permanent
legal force, and upon the request of the administrator or Supervisory Judge, the Court must, if
necessary, remove the security seizure applied on properties included in the debtors assets.
(3) Provisions set forth in paragraph (1) and paragraph (2) shall also apply to execution and security
seizure, which have already commenced on properties which are not encumbered even though such
execution and seizure are related to the creditors claims and are secured by a pledge of right,
fiduciary transfer, security right, mortgage or collateral right on other properties or by right which
must be privileged in connection with certain assets by virtue of the law.

Sufficiently Clear

Article 243

(1) The suspension of obligations for payment of debt shall not cease the proceeding of a case which
have been commenced by the Court nor hinder the filing of a new case.
(2) In the matter of case as intended in paragraph (1) regarding a lawsuit against the settlement of a
debt which have been acknowledged by the debtor, whereas the plaintiff has no interest in obtaining
a decision to exercise his/her right against any third party, therefore upon the registration of such
acknowledgment, the judge may postpone the decision until the termination of the suspension of
obligations for payment of debt.
(3) The debtor may not become neither a plaintiff nor defendant in any case which deals with the rights
and obligations on his/her assets without the administrators approval.

Sufficiently Clear

Article 244

With due regard to the provisions of Article 246, the suspension of obligations for payment of debt shall not
apply to:
a. debts guaranteed with a a pledge of right, fiduciary transfer, security right, mortgage or collateral
right over property.
b. claims for payment of maintenance, supervision or training fees, and the Supervisory Judge must
determine the amount of such claims existing and unpaid prior to the suspension of obligations for
payment of debt which do not constitute claims with the right to be prioritized.
c. prioritized claims over certain property of the Debtor or the entire asset of debtor that are not covered
in Paragraph (1) point b.

Sufficiently Clear

Article 245

The settlement of all debts, other than the ones as intended by Article 244 that exist prior to the suspension
of obligations for payment of debt is granted may not be carried out during the suspension of obligations for
payment of debt, unless such settlement be paid to all the creditors, according to the proportion of each
claim, without prejudice to the application of the provision of Article 185 paragraph (3).

Sufficiently Clear

Article 246

Provisions of Article 56, 57, and 58 shall apply mutatis mutandis in implementing the rights of the creditors
as intended by Article 55 paragraph (1) and privileged creditors, with the provision that the suspension shall
apply as long as the suspension of obligations for payment of debt period.

Sufficiently Clear

Article 247

(1) Persons who has any debts or claims on debts against the debtor, may set off the debt under the
condition that the aforementioned debts or the legal action which cause the aforementioned debts,
exist prior to the suspension of obligations for payment of debt.
(2) Claims against the debtor as intended in paragraph (1) shall be calculated in accordance to the
provisions of Article 274 and Article 275.

Sufficiently Clear

Article 248

(1) Persons who has taken over debts or claims on debt to the debtor from a third party prior to the
suspension of obligations for payment of debt, may not set off the debt in the event that the transfer
of such debt and claim of debt was not conducted in good faith.
(2) Debts or claims or debt transferred after the commencement of the suspension of obligations for
payment of debt may not be set off.
(3) Provisions of Article 53 and article 54 shall apply to the settlement of debts regulated in this article.

Sufficiently Clear

Article 249

(1) In the event that at the time the decision granting the suspension of obligations for payment of debt
is announced contains a mutual agreement which has yet to be or has only been partly fulfilled, then
the party with whom the debtor enters into the agreement with may request the administrator to
provide assurance to continue the implementation of the agreement concerned within a period of
time agreed on by the administrator and such party.
(2) In the event that no agreement is reached concerning the period referred to in paragraph (1), the
Supervisory Judge shall stipulate such period.
(3) In the event that within the period of time intended in paragraph (1) and paragraph (2) the
administrator does not respond or is unwilling to continue the implementation of the agreement
mentioned, then the agreement shall terminate and the party mentioned in paragraph (1) may claim
compensation as a concurrent creditor.
(4) If the administrator declares his/her readiness to fulfill the agreement, then the administrator shall
furnish a guarantee of his/ readiness to implement the agreement concerned.
(5) Provisions of paragraph (1), paragraph (2), paragraph (3) and paragraph (4) shall not apply to
agreements which require the debtor to execute the agreed actions independently.

Sufficiently Clear

Article 250

(1) In the case that the agreement referred to in Article 248 involves the delivery of traded goods which
are normally traded by a fixed period of time and the party obligated to deliver the goods prior to the
delivery is conducted by the debtor, then the agreement shall become canceled when the decision to
temporary suspension of obligations for payment of debt is announced, and in the event that the
opposing party suffers losses due to the cancellation, he/she may apply as a concurrent creditor to
obtain compensation.
(2) In the event that the assets suffer losses due to the cancellation mentioned in paragraph (1),
therefore the opposing party shall be obligated to pay such damages.

Sufficiently Clear

Article 251

(1) In the event that the debtor had leased an asset, then the debtor, with the administrators approval,
may terminate the lease agreement, insofar as the termination notification is delivered before the
termination of the agreement in accordance with local custom.
(2) In implementing the termination as intended in article (1), due observance must also be made to the
period of time in accordance with the agreement or custom, with provision that a period of 90 (ninety)
days is sufficient.
(3) In the event that lease had been paid in advance, therefore the lease agreement may not be
terminated prior to the end of the lease period which have been paid for in advance.
(4) As from the day that the decision of the temporary suspension of obligations for payment of debt is
announced, the leasing fee becomes debt of the debtors assets.

Sufficiently Clear

Article 252

(1) Immediately after the commencement of the suspension of obligations for payment of debt, the
debtor shall be entitled to dismiss his/her employees, obliging to the provisions of Article 240 and the
period which has been agreed or is required by the prevailing laws and regulations, with the
understanding that such employment may nevertheless be terminated with at least 45 (forty-five)
days prior notification.
(2) As from the commencement of the moratorium on temporary debt repayments, salary and other
expenses arising from such employment become debts of the debtors assets.

Sufficiently Clear
Article 253

(1) Any payment made to the debtor after the temporary suspension of obligations for payment of debt is
announced but which have not been announced in public, in order to fulfill any contract entered prior
to the announcement of the temporary suspension of obligations for payment of debt, shall release
the party who made the payment to the debtors assets unless it can be proven that the party has
knowledge of the temporary suspension of obligations for payment of debt.
(2) Payments as referred to in paragraph (1) made after the announcement shall only release the
person implementing such payment in the event that he/she is able to prove that even though an
announcement has been made in accordance with the law, the announcement concerned could not
become known at his/her residence, without prejudice to the rights of the administrator to prove
otherwise.

Sufficiently Clear

Article 254

The suspension of obligations for payment of debt shall not apply to benefit co-debtors and guarantor.

Sufficiently Clear

Article 255

(1) The suspension of obligations for payment of debt may be terminated upon the request of the
Supervisory Judge, one or more creditors, or upon the initiative of the Court in the event that:
a. the debtor, during the suspension of obligations for payment of debt, acts in bad faith in the
management of his/her assets;
b. the debtor has caused damages to or has attempted to cause damages to the creditors;
c. the debtor has violated the provisions of Article 240 paragraph (1);
d. the debtor fails to carry out the obligations required of him/her by the Court on or after the
suspension of obligations for payment of debt was granted, or fails to carry out actions
requested by the administrator in the interest of the debtors assets;
e. during the period of the suspension of obligations for payment of debt, the condition of the
debtors assets makes the continuation of the suspension of obligations for payment of debt
unfeasible; or
f. the debtors circumstances, cannot be expected to fulfill his obligations to creditors on time;
(2) In the circumstances referred to in paragraph (1) point a and point e the administrator shall be
obligated to file a request to terminate the suspension of obligations for payment of debt.
(3) The petitioner, debtor and administrator must be heard on the date stipulated by the Court and after
being properly summoned.
(4) The request to terminate the suspension of obligations for payment of debt as intended in article (1)
must be examined within 10 (ten) days after the filing of the aforementioned request and the decision
must be issued within 10 (ten) days as from the examination is completed.
(5) The Courts decision must contain the reasons underlying the said decision.
(6) In the event that the postponement of debt settlement obligation is terminated by virtue of the
provisions of this article, the debtor must be declared bankrupt in the same decision.

Sufficiently Clear

Article 256

Provisions of Article 11, Article 12, Article 13, and Article 14 shall apply mutatis mutandis to the decision to
terminate the suspension of obligations for payment of debt.

Sufficiently Clear

Article 257

Decision on bankruptcy as the result of the decision to terminate the suspension of obligations for payment
of debt must be announced in the manner set forth in Article 15 paragraph (4).

Sufficiently Clear

Article 258

(1) If the Court considers that the session for the termination of the suspension of obligations for
payment of debt can not be concluded before the date on which creditors are to be heard as
stipulated in Article 225 paragraph (3), the Court must order that the creditor be notified in writing
that they cannot be heard on such date.
(2) If considered necessary, the Court shall forthwith determine another date to hold session and in that
event the creditor shall be summoned by the administrator.

Sufficiently Clear

Article 259

(1) The debtor at any time is entitled request the Court to revoke the suspension of obligations for
payment of debt, on the grounds that the debtors assets enables the commencement of re-payment
with the provision the administrator and creditor must be properly summoned and heard before a
decision is issued.
(2) The summons mentioned in paragraph (1) must be conducted by the impound officer with an official
registered letter, no later than 7(seven) days prior to the Court session.

Sufficiently Clear

Article 260

During the suspension of obligations for payment of debt, the debtor cannot be declared bankrupt.

Sufficiently Clear

Article 261

In the event that pursuant to one of the provisions in this Chapter, bankruptcy is declared, then Article 15
shall apply.

Sufficiently Clear

Article 262

(1) In the event that bankruptcy is declared in accordance to provisions of this chapter, the following
provisions shall apply:
a. the period of time referred to in Article 42 and Article 44 shall be counted from the
commencement of the suspension of obligations for payment of debt;
b. legal actions conducted by the debtor after being given authorization by the administrator
must be considered as legal actions conducted by the curator, and debts of the debtors
assets which arises during the suspension of obligations for payment of debt shall be debts
of bankruptcy assets;
c. obligations of the debtor which arise during the suspension of obligations for payment of
debt without authorization by the administrator may not be charged to the debtors assets,
unless such matter benefits the debtors debts.
(2) In the event that the petition for a suspension of obligations for payment of debt is submitted within 2
(two) months after the previous suspension of obligations for payment of debt, therefore the
provisions of paragraph (1) shall also apply to the next suspension of obligations for payment of
debt.

Paragraph (1)
Sufficiently clear
Paragraph (2)
The time period as intended by paragraph (1) point a is counted starting from the
announcement of the first decision of provisional suspension of obligations for payment of
debt.

Article 263

Remuneration for experts appointed by virtue of Article 238, shall be determined by the Supervisory Judge
and must be paid with priority from the debtors assets.

Sufficiently Clear

Article 264

Provisions of international laws as intended in Article 212, Article 213, and article 213 shall apply mutatis
mutandis in the matter of a suspension of obligations for payment of debt.

Sufficiently Clear

Part Two
On the Composition

Article 265

Debtor shall be entitled to offer a composition or afterward propose the suspension of obligations for
payment of debt to the creditor.

Sufficiently Clear

Article 266

(1) In the event that the proposal for composition is not submitted to the Court Clerk as intended by
Article 225, the proposal concerned shall be moved forward prior to the date of the court session as
intended in Article 226 or on a later date with due observance to provisions of Article 228 paragraph
(4).
(2) Copies of proposal for composition must be made submitted to the Supervisory Judge and the
administrator and experts, if any.

Sufficiently Clear

Article 267

In the event that prior to the decision to ratify the composition obtains legal force, a decision is issued which
terminates the suspension of obligations for payment of debt, the proposal for composition shall be
canceled.

Sufficiently Clear

Article 268

(1) In the event that the proposal for composition has been submitted to the Clerk of the court, then the
Supervisory Judge must determine:
a. the last day on which the claims subject to the suspension of obligations for payment of debt
must be submitted to the administrator;
b. the date and time the suggested proposal for composition shall be discussed and decided
upon in a meeting of creditors chaired by the Supervisory Judge.
(2) The period of time between the day as intended in paragraph (1) points a and b shall be no less than
14 (fourteen) days.

Sufficiently Clear

Article 269

(1) The administrator must announce the determination of the period referred to in Article 268 paragraph
(1) along with the inclusion of the proposal for composition, unless this matter has already been
announced in accordance to the provisions set forth in Article 226.
(2) The administrator must also notify matters as intended in paragraph (1) by registered mail or courier
to all the creditors known to him/her, and this notification must mention the provisions of Article 270
paragraph (2).
(3) Creditors may attend in person or be represented by a proxy by virtue of a written power of attorney.
(4) The administrator may require that the debtor provides him/her with a deposit in an amount
determined by the administrator in order to cover the expenses of such announcement and
notification.

Paragraph (1)
Sufficiently Clear

Paragraph (2)
Sufficiently clear

Paragraph (3)
power here has different meanings from power intended in Article 7.

Paragraph (4)
Sufficiently clear

Article 270

(1) Claims must be filed with the administrator by submitting a claim document or other written evidence
which states the nature and amount of claim accompanied by supporting evidence or copies thereof.

(2) Creditors may request a receipt from the administrator in respect of claims submitted to the
administrator as referred to in paragraph (1).

Sufficiently Clear

Article 271

All calculations included by the administrator must be compared to the records and reports provided by the
debtor.

Sufficiently Clear

Article 272

The administrator must draw up a register of the Receivables, mentioning the names and domiciles of the
creditors, the amount and description of each debt, and also whether the debt is acknowledged or denied by
the administrator.

Sufficiently Clear

Article 273

(1) Receivables on debt bearing interest must be added to the register intended in Article 272 along with
calculation of interest up to the day of the commencement of suspension of obligations for payment
of debt.
(2) The provisions of Article 135, Article 139, Article 140, Article 141, Article 142 paragraph (1) and
paragraph (2) shall apply mutatis mutandis in the matter of suspension of obligations for payment of
debt.

Sufficiently Clear

Article 274

(1) A claim with postponement conditions may be included in the register mentioned in Article 272 for
the prevailing value at the commencement of the suspension of obligations for payment of debt.
(2) In the event that the administrator and creditor fail to reach an agreement concerning the
determination of the value of such claim, all the claim of the Creditor must be accepted conditionally.

Sufficiently Clear

Article 275

(1) Receivables on debt which the due date is uncertain or which gives an allowance of periodic
payment, must be included in the register for the value prevailing on the date of the announcement
of provisional suspension of obligations for payment of debt.
(2) All Receivables which will be collectible within 1 (one) year after the announcement of the decision of
the suspension of obligations for payment of debt, must be treated as Receivables due payable on
the said date
(3) All receivables which are collectible after 1 (one) year since the announcement of the decision of the
suspension of obligations for payment of debt, must be entered into the register for amounts which
apply 1(one) year after the announcement of the aforementioned adjudication of suspension of
obligations for payment of debt.
(4) In calculating the amount of receivables referred to above in paragraph (2) and (3), the following
must be observed:
a. the time and procedure of installment payments;
b. the profit which may be gained; and
c. the rate of interest if any.

Sufficiently Clear

Article 276

(1) The administrator must provide a copy of the register mentioned in Article 272 at the office of the
Clerk of the Court, in order that within 7 (seven) days prior to the meeting as intended in Article 268
for free perusal by anyone who wishes it.
(2) The copy as intended in paragraph (1) shall be provided free of charge.

Sufficiently Clear

Article 277

(1) With due regards to the provisions regarding the period for the suspension of obligations for
payment of debt as referred to in Article 228 paragraph (4), at the request of the Administrator or by
virtue of his office, the Supervisory Judge may postpone the discussion and the vote concerning
such proposal for composition.
(2) In the event of a postponement of the discussion and vote as referred to in paragraph (1), the
provisions of Article 269 shall apply.

Sufficiently Clear

Article 278

(1) At the composition meeting, both the administrators or the experts, if any, have to provide a written
report regarding the composition proposed.
(2) The provisions as referred to in Article 150 shall apply mutatis mutandis in the matter of suspension
of obligations for payment of debt.
(3) Receivables that are submitted to the administrator after the period mentioned in Article 263 (1) a,
but at the latest two days before the date of the meeting, have to be entered onto the list upon a
request therefor made at the meeting, if neither the administrators nor any of the creditors present
objections thereto
(4) Receivables thereafter should not be entered onto the register.
(5) The provisions in paragraph (2) and paragraph (3) above should not be applicable if the creditor is
domiciled outside of the territory of the Republic of Indonesia, which prevented him/her from
reporting earlier.
(6) In case of an objection as stipulated in paragraph (2) and paragraph (3), or if there is a dispute
regarding the existence of the impediment as stipulated in paragraph (5), the Supervisory Judge
shall decide the matter after having consulted with the meeting.

Sufficiently Clear

Article 279

(1) At the meeting, the administrators are entitled to withdraw any acknowledgment or denial which they
have made.
(2) The creditors present at the meeting shall be able to deny receivables son debt that were
acknowledged either wholly or partly by the administrators.
(3) Acknowledgment or denial made during the meeting will be recorded on the above mentioned
register.

Sufficiently Clear

Article 280

The Supervisory Judge shall decide whether and in what amount the creditors whose receivables on debts
are objected to will be admitted to the voting.

Sufficiently Clear

Article 281

(1) The proposal for composition may be accepted based on:
a. approval by more than 1/2 (half) of the concurrent creditors whose rights have been
acknowledged or temporarily acknowledged who are present at the meeting of creditors
referred to in Article 268 including the creditors referred to in Article 268, who together
represent no less than 2/3 (two thirds) of all the acknowledged or temporarily acknowledged
claims of the concurrent creditors or their proxies who are present at such meeting.
b. approval by more than 1/2 (half) of the creditors whose debts has been secured by pledge,
fiduciary transfer, securities right, mortgage, or other securities over properties, who are
present at the meeting of creditors and including the creditors who together represent no
less than 2/3 (two thirds) of all the acknowledged or temporarily acknowledged claims of the
concurrent creditors or their proxies who are present at such meeting
(2) Creditors as intended in paragraph (1) point b who disagrees with the composition are compensated
in the smallest amount of the security value or the actual number of loan that is directly secured by a
security over property.
(3) The provisions in Article 152 and Article 153 shall also apply in the voting on the acceptance of the
proposal for composition referred to in Paragraph (1).

Paragraph (1)
Sufficiently Clear

Paragraph (2)
Securities Value is the value of selectable security values over previously selected security
values or security objects established by Supervisory Judge.

Paragraph (3)
Sufficiently clear

Article 282

(1) The minutes of the meeting chaired by the Supervisory Judge must state the contents of the
proposal for composition, the names of creditors who are present and are entitled to vote, notes
regarding the votes cast by creditors, and the result of the vote and notes concerning any other
incidents at the meeting.
(2) The creditors register made by the administrator which has been supplemented or amended in the
meeting must be signed by the Supervisory Judge and acting Clerk of the Court and must be
attached to the minutes of the meeting concerned.
(3) A copy of the minutes of the meeting referred to in paragraph (1), must be made available at the
office of the Clerk of the court for 8 (eight) working days in order to be examined free of charge by
the public.

Sufficiently Clear

Article 283

(1) the debtor and the creditors who voted in favor of the composition plan may, within 8 (eight) days
after the date the ballot in the meeting, request that the minutes of meeting be corrected if based on
the existing documents the Supervisory judges erred in considering the composition to have been
rejected.
(2) If the Court makes corrections to the minutes of meetings then in the same decision the Court must
decided composition ratification deadline, which must take place at least 8 (eight) days and the
longest 14 (fourteen) days after the Court decision that corrected the minutes has been announced.
(3) The Administrator shall be obliged to notify the creditors in writing the Court decision as intended by
Paragraph (2) and such decision shall have the effect that the declaration of bankruptcy as intended
by Article 289 to be null and void.

Sufficiently Clear

Article 284

(1) If the proposal for composition is accepted, the Supervisory Judge must submit a written report to
the Court on the date stipulated for the purposes of the ratification of the composition, and on such
stipulated date the administrator and creditors may submit the reasons which caused them to accept
or reject such proposal for composition.
(2) The provision in Article 158 paragraph (2) shall apply mutatis mutandis in respect of the
implementation of the provision in paragraph (1).
(3) The Court may postpone and stipulate the date of the session for the ratification of the composition
which must take place no later than 14 (fourteen) days after the date of the session as referred to in
paragraph (1).

Sufficiently Clear

Article 285

(1) The Court must render a decision concerning the ratification of the composition together with the
reasons therefor at the session referred to in Article 284 paragraph (3).
2) The Court shall be obligated to refuse to ratify the composition if:
a. the debtors assets, including goods in respect of which there are retention rights, far exceed
the amount agreed in the composition;
b. the implementation of the composition is not sufficiently guaranteed;
c. the composition was reached as a result of fraud, or collusion with one or more creditors, or
due to the use of other dishonest means, regardless of whether the debtor or other parties
cooperated to achieve such ends; and or
d. the fees for services and costs expended by the experts and the manager have not yet been
paid, or no guarantee of their payment has been given.
3) If the Court refuses to ratify the composition, then in the same decision the Court must declare the
debtor bankrupt and said decision shall be announce in the State Gazette and at least 2 (two) daily
newspapers as intended by article 226 within the longest 5 (five) days as the decision is accepted by
the Supervisory Judge and Curators.
4) The provisions referred to in Article 11, Article 11 and Article 12 shall apply mutatis mutandis in
respect of the ratification of composition however they shall not apply to the rejection of the
composition.

Paragraph (1)
Sufficiently Clear

Paragraph (2)
Point a
Rights to seize over an asset is retention right.
Point b
Sufficiently clear
Point c
Sufficiently clear
Point d
Sufficiently clear
Paragraph (3)
Sufficiently clear
Paragraph (4)
Sufficiently clear

Article 286

The rectified composition is binding to all creditors, except to Creditors who disagrees with the composition
as intended in Article 280 (2) .

Sufficiently Clear

Article 287

The ratification of the composition shall, with regard to the minutes as intended by Article 282, to all Creditors
who are not denied by the debtor, forms the legal basis executable against the debtor and all persons
involved in the composition as guarantors.

Sufficiently Clear

Article 288

The suspension of obligations for payment of debt shall immediately terminate after the composition
ratification decision becomes legal and binding and the administrators shall announce this termination in the
State Gazette and at least 2 (2) daily newspaper as intended in Article 227

Sufficiently Clear

Article 289

If the proposal for composition is rejected, the Supervisory Judge must immediately notify the Court of such
rejection by delivering to the Court copies of the composition plan and minutes of the meeting as intended in
Article 282, and in such matters, the Court must declare the debtor bankrupt after the Court receives the
notification of the rejection from the Supervisory Judge, with due observance of provisions referred to in
Article 283 paragraph (1).

Sufficiently Clear

Article 290

If the Court has declared the Debtor bankrupt, the provisions concerning bankruptcy as intended in
CHAPTER II shall apply with the exception of Article 11, Article 12, Article 13, and Article 14.

Sufficiently Clear

Article 291

(1) Provisions referred to in Article 170 and Article 171 shall apply mutatis mutandis to nullification of
composition.
(2) In a Court decision nullifying composition, the debtor shall also be declared bankrupt.

Sufficiently Clear

Article 292

A composition cannot be offered in a bankruptcy decided by virtue of Article 285, Article 286, or Article 291.

This article means decision that declares bankruptcy results in immediate insolvency status over
debtors assets.

Article 293

(1) Except determined otherwise, decisions made by virtue of the provisions in CHAPTER III herein may
not be appealed against.
(2) An appeal may be filed by the Attorney General in the interest of the law.

Sufficiently Clear

Article 294

Petitions filed based on provisions as intended by Article 237, Article 255, Article 256, Article 259, Article
283, Article 285, Article 290 and Article 291 must be signed by an advocate, who acts by virtue of a special
Power of Attorney, unless filed by the administrator.

Sufficiently Clear

CHAPTER IV
PETITION FOR CIVIL REVIEW

Article 295

(1) Against judicial decision that already has binding legal force, a petition for civil review may be filed to
the Supreme Court, except stipulated otherwise in this Law.
(2) Petition for civil review may be filed, if:
a. After the case has been decided, there is/are new evidence(s) that in nature may stipulate
the case, which at the time of the investigation in the Court has already occur, but has not
been found; or
b. The judge has a real mistake in making the decision.

Sufficiently Clear

Article 296

(1) Application for petition for civil review is based on reason as intended by Article 295 paragraph (2)
point a, shall be done at the latest of 180 (a hundred and eighty eight) days after the day of the
decision that wants to be apply for a reconsideration has binding legal force.
(2) Application for petition for civil review is based on reasons as intended by Article 295 paragraph (2)
point b, shall be done at the latest of 30 (thirty) days after the day of the decision that wants to be
apply for a reconsideration has binding legal force.
(3) Application for civil review shall be submitted to the Clerk of the Court.
(4) The Clerk of the Court shall then register the petition for civil review at the day of the petition is filed,
and to the applicant shall be given a written receipt that signed by the Clerk of the Court at the same
day as the day of the petition is filed.
(5) The Clerk of the Court shall convey the petition for civil review to the Clerk of the Supreme Court in
the period of 2 (two) days

Sufficiently Clear

Article 297

(1) The applicant for petition for civil review shall be obliged to submit to the Clerk of the Court the
supporting evidence, which forms the basis of the petition and shall also be obliged to submit to the
respondent the copy of petition for civil review along with copy of supporting evidence at the day of
the said petition is filed as intended by Article 296 Paragraph (4).
(2) Without waiving the provision as intended by paragraph (1), the Clerk of the Court shall be obliged to
submit the copy of the petition for civil review along with copy of supporting evidence to the
respondent at the latest 2 (two) days after the petition is filed.
(3) The respondent may submit a response against the petition filed, at the latest 10 (ten) days after the
day of the petition is filed.
(4) The Clerk of the Court must convey the response as intended by paragraph (3) to the Clerk of the
Supreme Court at the latest 12 (twelve) days after the petition is filed.

Sufficiently Clear

Article 298

(1) The Supreme Court immediately examine and render decision of the petition for civil review at the
latest 30 (thirty) days after the day of the petition is received by the Clerk of the Supreme Court.
(2) The decision of petition for civil review must be announced in a session open for public.
(3) At the latest of 32 (days) after the day of the petition is received by the Clerk of the Supreme Court,
the Supreme Court shall be obliged to submit to the parties the copies of decision of civil review
completed with legal consideration which is the form of the basis of the decision.

Sufficiently Clear

CHAPTER V
OTHER STIPULATIONS

Article 299

Unless otherwise stipulated in this Law, then the procedural law shall be the civil procedural law.

Sufficiently Clear

Article 300

(1) The Court as intended by in this Law, besides examining and giving decision of petition for
consideration for bankruptcy and suspension of obligations for settlement of Debt, shall also be
authorized to examine and decide other cases in the commercial area, which stipulation is done by
the law.
(2) The establishment of the Court as intended by in Paragraph (1) shall be done in stages by
Presidential Decree, with regard to the necessity and readiness of the resources needed.

Sufficiently clear

Article 301

(1) The Court shall be obliged to examine and decide the case at the first level by a panel of judges.
(2) In the matter relating to commercial cases as intended by Article 300 Paragraph (1), the Chairman
Supreme Court may stipulate the types and value of the case at the first level shall be examined and
decided by a single judge.
(3) In doing so, the Judges of the Court are assisted by one Clerk or one substitute Clerk and a bailiff.

Sufficiently clear

Article 302
(1) The Judges of the Court are appointed by the decision of the Chairman of the Supreme Court.
(2) Requirements to be appointed as judges as intended paragraph (1) are:
a. Have experience as Judge in the area of the Public Court;
b. Have dedication and mastering knowledge in the field of cases that are part of the scope of
the Court authorization;
c. Dignified, honest, just, with have good manners; and
d. Have accomplished the program of special training at the Court as Judges.
(3) With regard to requirements as intended in paragraph (2) point b, point c, and point d, by Presidential
Decree based on proposal from the Supreme Court Chairman, it may be appointed an expertise, as
an ad hoc judge, in the first level of Court, cassation, and civil review.

Sufficiently clear

Article 303

The Court is still authorized to examine and settle the bankruptcy petition from the parties, which bound by
an agreement with an arbitration clause, as long as the debt that is the basis of the bankruptcy petition is in
compliance with the stipulation as mentioned in Article 2 paragraph (1) of this Law.

The provisions of this law is intended to give distinction to the Court that is still authorized to examine
and settle the bankruptcy petition from the parties, although the loan agreement they made contains
an arbitration clause.

CHAPTER VI
TRANSITIONAL PROVISIONS

Article 304

Dispute, which during this Law is in force:
a. Has been examined and decided but is not implemented yet, or has been examined but has not
been decided yet, shall be completed based on the laws and regulations on bankruptcy previously in
force prior to this Law.
b. Has been submitted but has not been examined yet, shall be completed based on the provisions of
this Law.

Point a
Sufficiently clear
Point b
Has not been examined means has not been heard by the Court.

Article 305

All the laws and regulations that are the implementation of the Bankruptcy Law (Faillissements-verordening
Staatblad 1905:217 juncto Staatsblad 1906:348) which has been amended by Government Regulation in
Lieu of Law Number 1 of 1998 regarding Amendment of Bankruptcy Law which stipulated to become Law
based on Law Number 4 of 1998 at the time of this Law is enforced, shall be still prevails as long as the said
law is not in contrary and/or not yet amended by the new regulation based on this Law.

Sufficiently clear

CHAPTER VII
CLOSING PROVISIONS

Article 306
The Commercial Court at the District Court of Central Jakarta that established by provision of Article 281
paragraph (1) of Government Regulation in Lieu of Law Number 1 of 1998 regarding Amendment of
Bankruptcy Law as previously stipulated to become law Number 4 of 1998, shall be stated to be still
authorized to examine and decide the case that is in the scope of Commercial Court duties.

Sufficiently clear

Article 307

At the time of this Law is enforced, the Bankruptcy Law (Faillissements-verordening Staatblad 1905:217
juncto Staatsblad 1906:348) and Law Number 4 of 1998 regarding the Stipulation of Government Regulation
in Lieu of Law Number 1 of 1998 regarding the Amendment of Bankruptcy Law to become Law (State
Gazette of the Republic of Indonesia of 1998 Number 135, Supplement to the State Gazette of the Republic
of Indonesia Number 3778), shall be revoked and shall be stipulated not in force anymore.

Sufficiently clear

Article 308

This Law shall be enforced as on the day of the promulgation.

For public cognizance, ordering the promulgation of this Law by placing it in the State Gazette of the
Republic of Indonesia.

Sufficiently clear


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