Today’s Legal Enlightenment (Tuesday, 27 September 2022) – BANKRUPTCY SHOULD ONLY BE AN ULTIMUM REMEDIUM (LAST RESORT)

According to Prof. Dr. Sutan Remy Sjahdeini, the imposition of bankruptcy should only be an ultimum remedium (last resort). This has also been confirmed in the Supreme Court’s Decision Number 024 PK/N/1999, which states that the potential and prospects of the debtor’s business must also be properly considered. If the debtor still has potential and prospects that can still develop, they should still be provided the opportunity to live and develop; Therefore, the imposition of bankruptcy is an ultimum remedium.

Source: Supreme Court Decision No. 385K/Pdt. Sus-Bankruptcy/2014, dated 21 October 2014, as published in Varia Peradilan No. 364, March 2016.

Best regards,

Fredrik J. Pinakunary