The COVID-19 Pandemic Hits The Economy, 1,100 Business Actors File For Bankruptcy And Debt Payment Delays

DENPASAR - Minister of Law and Human Rights Yasona H Laoly together with the Governor of Bali Wayan Koster launched the Individual Company application, in Nusa Dua, Badung Regency, Bali.

Minister of Law and Human Rights Yasonna said the launch of this application was special after the socialization of individual companies that had been carried out in several cities, such as Batam, Manado, Bali and Medan.

"Today, we enter a new phase. Today, it will be a historic day where Micro and Small Business (UMK) players can start taking advantage of a new type of legal entity, namely individual companies, through a special application that has been completed," said Yasonna in Badung, Bali, Friday, October 8th.

Yasonna said the COVID-19 pandemic had a heavy impact on all sectors. Many business actors are experiencing difficulties and are forced to close their businesses or reduce the number of workers.

"Data from five commercial courts throughout Indonesia shows that since the COVID-19 pandemic was declared a national disaster in April 2020 until July 2021, there have been more than 1,100 new applications for bankruptcy and suspension of debt payment obligations (PKPU)," he said.

"This figure is very concerning because one of the consequences of bankruptcy is Termination of Employment (PHK)," explained Yasonna.

Due to this condition, the government is trying hard to contain the impact of the pandemic by issuing a number of policies aimed at encouraging economic revival.

These policies include providing relaxations that have succeeded in restructuring loans worth more than Rp. 1,400 trillion and special programs for Micro, Small and MSMEs in the form of bank loan interest subsidies, distribution of capital assistance and investment financing, tax incentives, to distribution of presidential assistance. .

"Specifically regarding bankruptcy, the government is discussing the possibility of conducting a bankruptcy moratorium and PKPU to restrain the increase in the number of new applications. This policy will apply for a certain period of time (or) temporary measures, where other countries such as Germany, the UK, and Singapore have also implemented temporary measures regarding bankruptcy," said the Minister of Law and Human Rights.

"In addition, the government is also continuing to discuss changes to Law Number 37 of 2004 concerning bankruptcy and PKPU which is targeted to be completed by the end of this year, as one of the government's commitments related to the third phase of development policy loan from the world bank," Yasonna said.