The Role of the IMF in encouraging the Reform of Indonesia's Bankruptcy Law (Legal Analysis of Bankruptcy Decisions in the Commercial Court)

Abstract

The simple proof principle is the principle used in proving that a Debtor is declared bankrupt. This principle has been regulated in Article 6 paragraph (3) of the Government Regulation in Lieu of Law Number 1 of 1998 which was later ratified as Law Number 4 of 1998 concerning Bankruptcy. This provision is continued in Article 8 paragraph (4) of Law Number 37 the Year 2004 concerning Bankruptcy and Suspension of Debt Payment Obligations. Article 6 paragraph (3) of Law Number 4 the Year 1998 reads: "Requests for bankruptcy statements must be granted if there are facts or conditions that are only proven that bankruptcy requirements as referred to in Article 1 paragraph (1) have been fulfilled." Article 1 paragraph (1 ) Law Number 4 of 1998 regulates the requirements for application for bankruptcy statements consisting of 1) one debt that is due and payable, 2) there are 2 (two) creditors or more. However, in practice, there are different interpretations of the provisions of the bankruptcy statements, which results in different decisions between the commercial court and the Supreme Court as the court of cassation in Indonesia. This occurs because of 2 (two) things, namely 1) there are no clear measurements or parameters regarding simple proof and 2) Indonesian bankruptcy law does not use insolvency tests to determine the financial conditions of a company that is declared bankrupt. This paper is derived from the results of the author's research in the form of a dissertation. The research method used in this study is normative legal research with a case approach using primary data, in the form of bankrupt decisions by the commercial court and supreme court judges. The issuance of Government Regulation in Lieu of Law Number 1 the Year 1998 is inseparable from the role of the IMF which requires reform of Indonesia's bankruptcy law. However, due to the deadline regarding the Letter of Intent between the Republic of Indonesia and the IMF, then the discussion of the Government Regulation in Lieu of Law Number 1 the Year 1998 has not been maximally carried out by the Government of the Republic of Indonesia because it was  limited in time so that it leaves legal problems including simple proof in the Indonesian bankruptcy law.

Keywords: Simple Proof, Commercial Court, Parameter, Insolvency Test, Bankruptcy