The Genomic Nature of Debt Settlement in Indonesia (Study on Bankruptcy Regulation During Pandemic Covid-19) Ratna Hartanto, S.H., LL.M
Universitas Islam Indonesia
Abstract
The Covid-19 pandemic has impacted the global economic sector, including the increasing number of companies in Indonesia that are unable to settle debt. Data in commercial courts shows an increase in the number of applications for bankruptcy declarations. This study intends to examine to what extent the bankruptcy provisions are aligned with the genomic nature of debt settlement in Indonesia and whether the government policies related to bankruptcy during pandemic are in accordance with the genomic nature of debt settlement in Indonesia. This research uses normative juridical research methods by examining bankruptcy regulations with the indicators of the nation^s ideological values and the constitution. The research approach is carried out with a statutory approach, a conceptual approach, and a comparison approach with regulations in several countries. Previous research related to the weaknesses of bankruptcy law in Indonesia has been carried out by other authors but there has been no research specifically discussing the suitability of debt settlement through bankruptcy regulation with the genomic ideology of the nation and the constitution of the Indonesian. The results showed that bankruptcy regulation in Indonesia has not been fully aligned with the genomic nature of debt settlement in Indonesia that is taken from the values of Pancasila and the constitution. Based on Pancasila, the genomic nature of debt settlement should be in line with the belief, humanity, unity, democracy, and social justice. These values are important for business continuity. In addition, although the government has issued a series of policies for economic recovery due to the pandemic, from the beginning, Indonesia did not recognize the debt threshold as a condition for applying for a bankruptcy declaration like other countries so that when some countries raised the debt threshold that could be requested for bankruptcy during the pandemic, Indonesia could not do the same. The government^s policy during the pandemic is very limited, namely debtors from financial service institutions are given the opportunity to apply for credit relaxation to financial service institutions. This government policy is certainly not fully aligned with the principles of debt settlement in Indonesia.
