Proceedings of the 1st International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2021, March 6th 2021, Jakarta, Indonesia

Research Article

Legal Issue in the Matter of Cross-Border Insolvency in Indonesia Based on Law No. 37 Of 2004 on the Insolvency and Postponement of Debt Payment Obligation

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  • @INPROCEEDINGS{10.4108/eai.6-3-2021.2306397,
        author={Ilham  Djaya and Venty Indah Utami},
        title={Legal Issue in the Matter of Cross-Border Insolvency in Indonesia Based on Law No. 37 Of 2004 on the Insolvency and Postponement of Debt Payment Obligation},
        proceedings={Proceedings of the 1st International Conference on Law, Social Science, Economics, and Education, ICLSSEE  2021, March 6th 2021, Jakarta, Indonesia},
        publisher={EAI},
        proceedings_a={ICLSSEE},
        year={2021},
        month={5},
        keywords={cross-border insolvency; territoriality; universality},
        doi={10.4108/eai.6-3-2021.2306397}
    }
    
  • Ilham Djaya
    Venty Indah Utami
    Year: 2021
    Legal Issue in the Matter of Cross-Border Insolvency in Indonesia Based on Law No. 37 Of 2004 on the Insolvency and Postponement of Debt Payment Obligation
    ICLSSEE
    EAI
    DOI: 10.4108/eai.6-3-2021.2306397
Ilham Djaya1,*, Venty Indah Utami1
  • 1: Faculty of Law Universitas Kader Bangsa Palembang, Balai Harta Peninggalan Jakarta, Indonesian Ministry of Law and Human Rights
*Contact email: ilhamdjaya06@gmail.com

Abstract

The issue of cross-border insolvency is growing rapidly in line of the global economic movement. The foreign elements on insolvency process raises question on the States’ jurisdiction, the Court’s authority to adjudicate the case of cross-border insolvency, the recognition of Indonesia’s court decision on insolvency in another State, as well as the issue of Curator’s authority to cooperate with another State officials. In Indonesian insolvency law, the issue of cross-border insolvency is limitedly regulated and unable to resolve the arising legal issues. The inconsistency of the application on territoriality and universality principle in Law No. 37 of 2004 on the Insolvency and Postponement of Debt Payment Obligation causes the difficulty on executing the insolvency assets in another State’s territory and vice versa. Thus, an adequate cross-border insolvency legal framework is required to provide legal certainty for the business actors in Indonesia by adopting the existing legal framework through international agreements and reforming the Indonesian insolvency law.