Cross Border Insolvency for Economic Recovery amongst Southeast Asia Countries Gede Aditya Pratama (a*)- Elfirda Ade Putri (b)
Universitas Bhayangkara Jakarta Raya
Jl. Raya Perjuangan Bekasi Utara, Kota Bekasi, Jawa Barat 17121, Indonesia
Abstract
The development of business transactions by conducting cross-border trade will simultaneously bring a situation where the company will be faced with a diversity of national laws or legal systems in jurisdictions or countries that are different from their countries of origin, even in this context bankruptcy is also a consequence of transnational trade activities. The potential for bankruptcy gives a sign that a company needs to restructure its debt, then the company will also be faced with other complex problems involving the coordination of settlement proposals involving companies from different countries who cooperates directly with the company. The legal process of such a situation can be said to be complicated, because of the conflict of national laws of each country, these differences in laws and regulations create difficulties for each country that have its own frames of bankruptcy laws. In 2015 in the Southeast Asian region a community called the ASEAN Economic Community was established which aims to build a fully integrated economy for countries in the Southeast Asian region in order to create resilience in the face of global economic shocks. But unfortunately, ASEAN member states still have not made any adjustments or prepared regulations especially for the fully integrated cross-border insolvency rules, even though an important element to accelerate economic recovery can be done by creating harmonization of cross-border insolvency law arrangements.
