Corporate Recovery and Insolvency

Voluntary bankruptcy or a PKPU petition can only be filed by a director if a General Meeting of Shareholders has approved it in advance.

Why Declare Bankruptcy?

The world is changing and it’s not always possible to keep your head above water when global crises can have such far reaching local impacts. Some companies can find it difficult to pay off debts and recuperate any outstanding money that’s owed.

Seven Stones Indonesia is here to help your company in times of stress by offering corporate recovery and bankruptcy/ insolvency services during these difficult times. Let us know if you’d like to discuss the best solutions for your business.

How Do You File For Bankruptcy and Debt Suspension (PKPU) in Indonesia?

According to SSEK, one of the largest independent law firms in Indonesia, as businesses begin to recover from the impact of lockdowns, those that were in default are now facing claims for payment of obligations and debts. And that means “banks will have to decide whether to restructure debts and non-performing loans, and creditors may seek resolution of unpaid debts through the available forums. Creditors ultimately may opt to pursue either bankruptcy or suspension of debt payment obligation (Penundaan Kewajiban Pembayaran Utang or “PKPU”) proceedings through the relevant Commercial Court for the resolution of unpaid debts.” (Source: SSEK)

Bankruptcy and PKPU are different but both are generally quicker than civil lawsuits. “A bankruptcy proceeding has to be resolved in 60-calendar days from the date the application is made, while a PKPU proceeding has to be resolved at the most within 20-calendar days, depending on the applicant.” (Source SSEK)

Overview for Filing for Bankruptcy in Indonesia 

  1. You can file for bankruptcy or your creditors can. 
  2. After 30-days you’ll know whether the filing has been approved or rejected. 
  3. If the filing is confirmed and approved, you’ll need to sit down and meet with your creditors and discuss the best ways to move forward and how assets will be designated and distributed. 
  4. If the filing is rejected, there’s usually a judicial review and the results of that could mean filing again.
  5. You could also file for debt suspension, which if approved, would mean your creditors have agreed to  give you time to reschedule payments.

Overview for filing PKPU in Indonesia

  1. You can file for PKPU or your creditors can. 
  2. For self-filing, you’ll need to wait for a court decision, which is usually within three days and then go through the PKPU process, which is usually a maximum of 270-days.
  3. If your filing is approved, an accord is issued.
  4. If your filing is rejected, you will be declared bankrupt and will need to arrange a meeting with your creditors and discuss/ agree to the best ways to move forward.
  5. If your creditors file for PKPU a summons letter is issued to you, which is usually within 7-days to go to trial.
  6. After the trial you’ll have to wait for a court decision, which usually takes about 20-days and go through the PKPU process , which usually takes a maximum of 270-days.
  7. If their filing is approved, an accord is issued.
  8. If their filing is rejected, you will be declared bankrupt and will then need to meet with your creditors and discuss/ agree to the best ways to move forward.

Here’s How Seven Stones Indonesia Can Help You

  • We’ll look into your assets, liabilities and stakeholder and creditor claims. 
  • We’ll analyse your liquidity. 
  • We’ll help with your bankruptcy filing, debt suspension filing, PKPU filing and offer debt restructuring options.
  • We’ll also help to look for ways other entities can help you, for example with potential investors. 

Contact Our Consultants

Get in touch If you have any questions about any services we offer.

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FAQ's

These are answers to questions we get asked the most about company set ups. If your question isn't here, drop us a line.

Of course. To do so, you need to engage with a local nominee service provider.
Yes, this particularly applies to import and export businesses. Instead of establishing a company, you can use an undername import service, also known as importer of record.
It should take between 1 to 1.5 months. For speedy incorporation, you can choose a shelf company (ready-made company) instead.
Yes. A joint venture company can be in the form of PT PMA (foreign company) or PT (local company). Requirements for each establishment are different.
Business Registration Number is proof that a company, regardless of type, is legally registered in Indonesia. A company that does not have a Business Registration Number may have to face dissolution.

Contact Our Consultants

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Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.