Research Article
Comparison of Legal Systems: Legal Studies on Postponement of Debt Payment Obligations in Indonesia and Reorganization in the United States
@INPROCEEDINGS{10.4108/eai.29-6-2021.2312656, author={Sumamurung P. Simaremare and Bismar Nasution and Sunarmi Sunarmi and Edi Yunara}, title={Comparison of Legal Systems: Legal Studies on Postponement of Debt Payment Obligations in Indonesia and Reorganization in the United States}, proceedings={Proceedings of the 2nd International Conference on Law, Economic, Governance, ICOLEG 2021, 29-30 June 2021, Semarang, Indonesia}, publisher={EAI}, proceedings_a={ICOLEG}, year={2021}, month={10}, keywords={comparison of legal systems postponement of debt payment obligations reorganization}, doi={10.4108/eai.29-6-2021.2312656} }- Sumamurung P. Simaremare
Bismar Nasution
Sunarmi Sunarmi
Edi Yunara
Year: 2021
Comparison of Legal Systems: Legal Studies on Postponement of Debt Payment Obligations in Indonesia and Reorganization in the United States
ICOLEG
EAI
DOI: 10.4108/eai.29-6-2021.2312656
Abstract
Postponement of the debt payment obligation is an alternative provided to fulfill debtors’ obligations to creditors. Each country has a different framework in arranging such postponement. Indonesia, which adheres to the civil law system, regulates the problem of postponement in Law Number 37 of 2004 with a deferment scheme that concentrates on a mutual agreement between debtors and creditors in debt settlement. Meanwhile, America, which adheres to the common law system, regulates the scheme through corporate reorganization as regulated in Chapter 11 of the US Bankruptcy Code which focuses more on providing opportunities for debtors to rehabilitate their companies. A comparative study is made to find out more about the debt payment postponement scheme to be used as a reference for legal reform efforts. At this point, the comparison was carried out using a statutory and conceptual approach. In America, Chapter 11 of the US Bankruptcy Code gives debtors flexibility (i.e., time flexibility) in carrying out debt restructuring programs, while in Indonesia, postponement of debt payment obligation applies time constraints in delays and settlement of debt cases.
