Overview
1.1 Where would you place your jurisdiction on the spectrum of debtor- to creditor-friendly jurisdictions?
Law No. 37 of 2004 on Bankruptcy and Delay of Payments (“Law 37/2004”) emphasises creditors’ rights over debtors and demonstrates that Indonesia can be seen as a creditor-friendly jurisdiction. While there are some limitations on the options that might otherwise be available to distressed companies and some inflexibility, particularly in the tools available to insolvency practitioners, Indonesia’s insolvency regime primarily protects the rights and interests of creditors over the interests of debtors.
1.2 Does the legislative framework in your jurisdiction allow for informal work-outs, as well as formal…