JURIDICAL REVIEW RELATED TO THE WEAKNESSES OF ARTICLE 2 PARAGRAPH (1) OF LAW NO. 37 OF 2004 CONCERNING THE BANKCRUPTCY AND SUSPENSION OF PAYMENT AND AN EFFORT TO PROTECT THE RIGHTS OF DEBTOR

Abstract

Bankruptcy Law is a Law that expected to create balance between debtor and creditor, to protect the rights of debtor and creditor, and also to create a conducive economic situation in Indonesia. Bankruptcy is a condition where a company does not fulfill the obligations as a debtor, declared bankrupt. Bankruptcy terms contained in article 2 paragraph (1) of the Bankruptcy Act no. 37 of 2007 have many weaknesses seen from many aspects. The conditions of bankruptcy petition that written in Art 2 Paragraph (1) are made very simple that it could open broad opportunities for creditor to easily petition bankruptcy against his debtor. There is no requirement that the debtor should be in the state of insolvency before he can be petitioned for bankruptcy. There are several words in Article 2 Paragraph (1) that cannot implement well, because it contains the meaning that is not in accordance with the interests of debtors and creditors. This Qualitative Research is using Normative Methodology, and Law No. 37 of 2004 as the Primary Data, and also any Books, Related Law and Regulation, and also an Interview with Mr. Sutan Remy Sjadeini as the Secondary Data. This Research is also using Statue Approach, Conceptual Approach, and also Case approach such as the bankruptcy case of PT. Telkomsel and PT. Asuransi Jiwa Manulife Indonesia (AJMI). These things could be deemed as shortcomings that Article 2 Paragraph (1) of Law 37/2004 related to terms and conditions of the bankruptcy petition that less protective to the legal interest of the debtor. Therefore, the Indonesia bankruptcy law should be improved and revised in the future to provide equal protection for the creditor, debtor and also the stakeholders.