There are various subject of Applicant in Bankruptcy based on Law Number 37 of 2004 on Bankruptcy and Moratorium Obligation the “Indonesian Bankruptcy Lawof Debt Payment. Article 2 of Indonesian Bankruptcy Law states that the request of bankruptcy stipulation may be applied by the Public Prosecutors, Bank of Indonesia, Capital Market Supervisory Board, insurance Company and Minister of Finance.

Public Prosecutors

Public Prosecutor is able to submit bankruptcy request for public interest. Based on Indonesia Bankruptcy Law’s explanation, the public interest in here is the interest of nation, country and civilians, for instance:

1.  The debtor escapes;

2.  The debtorembezzles part of his or her asset;

3.  The debtors have debt to state-owned enterprise or other entitites collecting funds from the people;

4.  The debtors have debts deriving from collection of funds of people;

5.  The debtors do not have a good faith or being cooperative to resolve debt issue and receivables that is due; or

6.  In any other matters, which according to Public Prosecutors is a public interest

The mechanism to submit a request of bankruptcy by Public Prosecutors is similar to the mechanism that is used by Creditors or Debtors, the difference is only Public Prosecutors do not use lawyer.

Bank of Indonesia

Pursuant to Law Number 10 of 1998 on Banking (the “Indonesian Banking Law”), a bank is defined as a business entity that collecting fund from people in the form of saving and distributes it back in form of loan in order to increase the living standard of many people. When a bank becomes bankrupt, the Bank of Indonesia is the authorized party to revoke the business license of the bank by the Chairmanof Bank of Indonesia which follows up to liquidation and also as an authorized party to submit a request for bankruptcy.

In Indonesian Banking Law, there is no specific provision on bankruptcy of a bank. Therefore, a bank may become bankrupt by judge based on general regulation of bankruptcy namely Indonesian Bankrupcty Law.

Jeany Tabita

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