According to Law 37/2004, PKPU is a process provided by law to restructure the debts of debtors who have more than one creditor against overdue debts. Basically, both creditors and debtors themselves can apply for this PKPU. After that, both creditors and debtors believe they will not be able to continue paying their overdue and collectible debts.
In this case, it can be seen that the elements of the PKPU application include:
- The existence of debt;
- The debt has matured and can be collected; and
- The debtor in debt has more than 1 creditor.
Based on Article 224 paragraph (1) of Law 37/2004, a PKPU application must be submitted to the court and signed by the PKPU applicant. The PKPU application must also be accompanied by a list of the nature, amount, and debts of the debtor, as well as sufficient evidence. This evidence can include debt transaction documents that prove the legal relationship and show that the debtor has legal obligations towards the PKPU applicant. Next, the PKPU application is sent to the Chairman of the Commercial Court. After the PKPU application is sent to the Chairman, the hearing of the PKPU application will include the PKPU respondent’s answer, the examination of evidence from the PKPU respondent, and the PKPU applicant’s creditors and other creditors if any. After all parties have made their conclusions, the PKPU verdict is issued.
Within 20 days after the applicant files a PKPU application against the PKPU debtor (if filed by a creditor), the panel of judges must decide whether the company falls under PKPU. If it falls under PKPU, the PKPU debtor must immediately start the temporary PKPU process, which will last for a maximum of 45 days.
The temporary PKPU process lasts for 45 days. The PKPU decision and schedule must be announced by the management team in two daily newspapers and the state news. This process includes the first meeting of creditors, matching receivables or verification of bills, discussion and/or voting on the peace plan provided by the debtor.
In accordance with Article 271 of Law 37/2004, after the first creditors’ meeting, which usually serves as an introduction and opening meeting, a matching of receivables must be conducted. To do this, the management team must draw up a list of receivables that includes the name, residence, amount of the receivable, an explanation, and the management team’s attitude towards the receivable, as stated in Article 272. Once the management team has compiled the list of receivables, a peace plan can be discussed and voted on in accordance with Article 281 of Law 37/2004.
As stated in Article 228 paragraph (4) of Law 37/2004, the debtor may occasionally apply for an extension of the temporary PKPU. If the creditors approve the application, the supervisory judge will recommend to the panel of judges to grant the extension, changing the temporary PKPU to permanent PKPU. In this case, the PKPU process may not continue for more than 270 days after the temporary PKPU verdict is given.
Based on the application submitted by the debtor, which is approved by the creditors, permanent PKPU can be carried out within 270 days from the temporary PKPU decision pronounced by the panel of judges of the Commercial Court. Meanwhile, the temporary PKPU lasts for 45 days since the temporary PKPU verdict is pronounced by the panel of judges of the Commercial Court.
Legal Basis:
Law Number 37 Year 2004 on Bankruptcy and Suspension of Debt Payment Obligations.
Decision:
Constitutional Court Decision Number 071/PUU-II/2004 and 001-002/PUU-III/2005 in 2005.
Reference:
Hukumonline.com