SUSPENSION OF PAYMENT POST-PANDEMIC IN INDONESIA: IS IT SAVING THE UNDERTAKINGS?
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Abstract
The Covid-19 pandemic that hit the whole world had a serious impact on the business climate in Indonesia. Many companies experience cash flow disruptions so that they cannot settle their obligations to their creditors. In Indonesia, suspension of payment basically is an instrument for reconciling debtors upon their obligations to creditors. It was recorded that in March 2020, when Indonesia declared a pandemic emergency status, there was a 42% increase in the application for Suspension of payment at the Central Jakarta Commercial Court. Business actors naturally avoid the bankruptcy process because the impact on their companies will be much more detrimental. This paper attempts to analyze whether the suspension of payment can save the business actors from bankruptcy. Using a normative and conceptual juridical approach, this paper explains that suspension of payment can also be a double-edge sword if the debtor cannot propose a good reconciliation to his creditors.
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