Introduction (taken from Herna's Thesis on A Comparison of Insolvency Laws)

After researching extensively some areas of Indonesian business laws such as banking, partnership and other form of business organisations, franchising, intellectual property, laws regarding to foreign and domestic investments, consumer protection laws, competition laws, share markets and employment laws, a comparison of insolvency laws between Indonesia and Australia would be very worthwhile.

The reason being is that firstly, while Indonesia adopts a more continental approach (due to the Dutch colonization in 1906), it’s current insolvency laws have very poor qualities in solving disputes, therefore changes are urgent. For that reason it would be a good idea to reflect to the general law and the Corporation Law. Secondly, Indonesian intellectuals and politicians have been actively urging Parliament to change the current laws with specific regards to the common law, therefore soon changes to the Acts would give us a better understanding of insolvency laws in practice. Thirdly, both the general law and the Corporation Law have been remarkably useful sources to help students and practitioners to grasp the whole concept of the law, unlike UUK and Indonesian court precedents which mostly lack ‘intellectual’ arguments and quite inconsistent in many cases with the same facts situation. This maybe as a result of low level of education, poor court procedures and a slow realisation of the people themselves to change.

Consequently, comparisons and discussions will be made extensively in this paper. Specifically in the area of the history of insolvency laws between the two countries, purposes of the Acts, definitions adopted, the importance of receivership and voluntary administration which are ‘unrecognised’ in the UUK. Furthermore, a quite in depth debate will be made in relation to arrangements and reconstructions, making ‘prima facie’ case for a winding up order and finally the role and duties of a liquidator. They are very important aspects that one must know to be able to see the whole picture of insolvency laws as a whole.

In conclusion, it is in the interest of Indonesian students, intellectuals, practitioners, politicians and judges to be able to understand the law of insolvency in the general and the Corporation Law perspectives. Therefore, this thesis is made to aspire others to enhance their knowledge of the insolvency laws.

Yours sincerely

 

 

Herna Jacqueline Pardede L.L.B., L.L.M.