Bankruptcy and Suspension of Debt Payment (PKPU)

On a day to day business world, we often encountered the delay of payments by the Debtor. When the delays occurs, the Creditor will achieve various method space to collect all debts. In this case, the parties have performed all methods but the result is deadlocked, there are 2 (two) options for Creditors to obtain all debts, namely Bankruptcy or Suspension of Debt Payment (PKPU).  

Bankruptcy or PKPU needs to be adjusted with necessities, situations, and conditions precisely to get a maximum results. Here the insight of Bankruptcy or PKPU for the Creditors so they can make choices more carefully: 

Suspension of Debt Payment (PKPU) 

PKPU is defined as a certain period that given to the Debtor to create a new concession regarding the method of payment or debt settlement.

The PKPU provides an opportunity for the Debtors and the Creditors to rearrange the method of debt payment, including restructuring which allows the Debtor to manage their business to pay all their debt either partially or entirely within  determined period. The PKPU process can ensure that the Debtor who is not in liquid circumstances and finds it difficult to obtain credit, to avoid bankruptcy, while if the Debtor is given the time and opportunity there will be a chance for the Debtor to pay all his debts entirely.  

The application of PKPU can be filed by the Creditor or the Debtor to the Commercial Court. Usually, the application of PKPU is filed  by the Creditor, but it is also possible for the Debtor to files the application of PKPU mainly as a response of the bankruptcy application submitted by the Creditor against the Debtor.      

PKPU Process and Timeline

In providing legal certainty regarding the method of the Debtor payment, PKPU has limited  time in each stage process, where-in verification process it takes only 20 (twenty) days, followed by 45 (forty-five) days to discuss the method of debt payment/settlement plan, then the additional time for 270 (two hundred and seventy) days if the method of debt payment/settlement plan proposed  by the Debtor has been approved by the Creditors through voting and it has been stipulated by the Commercial Court.     

In case the parties did not achieve the consensus or the amicable settlement  during the PKPU process, the Debtor will be declared bankrupt by the Commercial Court and all the Debtor assets will be settled by the Receiver. When the Debtor is declared bankrupt by the Commercial Court, there are no legal remedies that might be carried out by the Debtor against the verdict of bankruptcy which preceded by PKPU.    


Bankruptcy is defined as a situation when the Debtor is considered insolvent to pay all debts therefore all assets owned by the Debtor will be settled and liquidated to pay all the Debtor debt. In the case the Debtor has been declared bankrupt, the Debtor is no having rights for his assets and the Commercial Court will appoint the Receiver to conduct the settlement process and liquidate all assets under the supervision of the Supervising Judge.    

Nevertheless, during the bankruptcy process is still possible to conduct a composition plan. If the composition plan submitted by the Debtor agreed by the Creditor the composition plan shall obtain the approval of Commercial Court to be implemented.   

Principally, requirements that shall be fulfilled to file bankruptcy process are same with PKPU process, there are due and payable debt and the Debtor have more than 1 (one) Creditor, however, there are several technical difference between PKPU and bankruptcy process as stated on the table below:  

Verification Period :

PKPU : 20 days since the application submitted, composition in 45 (forty-five) days (temporary PKPU)

Bankruptcy: 60 days after the application is registered. However, it can be  suspended if at the same time there is a PKPU against the Debtors.

Remedies :

PKPU: the Verdict of temporary PKPU cannot be appealed either  if the PKPU  become Bankruptcy 

Bankruptcy : Against Bankruptcy Decisions it can be submitted for Cassation and Judicial Review

Assets Settlement :

PKPU : There is no Debtor’s assets settlement process 

Bankruptcy : The  process of assets settlement conductedby the Receiver

Rights of the Debtor :

PKPU: during the PKPU process the Debtor and still active and able to manage their assets 

Bankruptcy: the Debtor is naturally passive and lose their rights to control and manage their assets  


The information contained in this brochure is general and should not be considered as legal advice or any other professional advice. Please consult with professional advisors for advice concerning these specific matters before making any decisions.