The Position of SEMA Number 3 of 2023 Against Law Number 37 of 2004 Concerning Bankruptcy and Postponement of Debt Payment Obligations on Bankruptcy Applications for Developers Who Cannot be Bankrupted

Housing is a fundamental human need, prompting both government and private sectors to prioritize adequate housing for urban and rural communities. To expedite settlement development, developers are granted streamlined access to licensing, land acquisition, banking supervision, and other necessary arrangements related to development, sales, and financing. In running the housing business, both private companies and companies under the central or regional government have the risk of facing various financial problems which result in bankruptcy applications filed by creditors and developers as debtors. However, with the issuance of SEMA No.3/2023 which states that developer companies cannot be bankrupted, which is considered contrary to Law No.37/2004, it needs to be studied thoroughly from various perspectives. The author then researches using normative juridical methods by using various literature and laws and regulations. Where the results of this theoretical research found that in the hierarchy of legislation SEMA does not have a position as a rule of law, because based on Permendagri No. 55 of 2010 Circular Letters are only notification letters about certain matters that are considered urgent. Then in the application of SEMA No.3/2023, judges' discretion is needed not to override the bankruptcy rules regulated in Law No.37/2004 which has a higher degree than the SEMA itself.