JAKARTA - The Indonesian Employers' Association (Apindo) has asked the government to immediately issue a Government Regulation in Lieu of Law (Perppu) to temporarily suspend or moratorium on Law Number 37 of 2004 concerning Bankruptcy and Postponement of Debt Payment Obligations (PKPU).
Apindo General Chair Hariyadi B Sukamdani said that the PKPU submission was already at the stage of leading to bankruptcy. In fact, he said, the purpose and objective of this PKPU is to give debtors who are experiencing difficulties the right to request a postponement of debt payment obligations in the context of restructuring the company.
"What we see is that the Bankruptcy and PKPU filings are no longer in a condition to make the company healthy, but instead lead to bankruptcy. So we Apindo propose that the Perppu Moratorium Law Number 37 of 2004 concerning Bankruptcy and PKPU be issued," he said in a virtual press conference , Tuesday, September 7th.
Hariyadi said many sectors in the business world were experiencing financial and cash flow difficulties during the COVID-19 pandemic, making it difficult to fulfill obligations to creditors.
Furthermore, said Hariyadi, this condition has caused many Creditors, especially Concurrent Creditors (partners) to want immediate payments from the Debtors by filing a Bankruptcy application and PKPU by taking advantage of legal loopholes and weaknesses in Law no. 37 of 2004 concerning Bankruptcy and PKPU which leads to moral hazard.
Hariyadi said that during the 2020-2021 COVID-19 pandemic, the total number of Bankruptcy and PKPU cases reached 1,298 until August 2021. Apindo also estimates that this number will continue to increase and there will be mass bankruptcy. Including termination of employment (PHK), unemployment so that it has significantly disrupted the government's efforts in national economic recovery (PEN).
"Companies that generate high economic added value are then bankrupt, even though the format of the PKPU is actually the domain of the debtor to apply for debt delays, but in the course of it 95 percent is used by creditors who apply. This has created a national emergency," he explained.
According to Hariyadi, a moratorium on the bankruptcy legal process has been carried out by many countries in the European Union, in accordance with the economic conditions of each country for a certain period of time.
"The World Bank also stated that a temporary policy in the form of a moratorium during a pandemic is a natural thing and will not affect the assessment of the ease of doing business or reduce the confidence of foreign investors, as long as the government has a comprehensive explanation and has time certainty," he said.
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