PKPU is one of the most powerful legal instruments available to companies facing financial difficulties in Indonesia. However, many business actors have not understood its full potential.

What is PKPU?

Penundaan Kewajiban Pembayaran Utang (PKPU) is a legal mechanism that provides temporary protection to debtors from creditor claims, while providing an opportunity to negotiate a debt restructuring plan.

Temporary PKPU vs Permanent PKPU

Temporary PKPU lasts for a maximum of 45 days and can be extended to a Permanent PKPU that applies for up to 270 days. During this period, all execution processes on debtor assets are suspended.

Advantages of PKPU over Bankruptcy

Unlike bankruptcy which aims at liquidation, PKPU aims to save the company as a going concern. This means employees keep working, business keeps running, and assets are not sold.

Negotiation Strategy in PKPU

The key to successful PKPU lies in negotiating ability with creditors. The proposed peace plan must be realistic, executable, and provide greater value for creditors compared to liquidation.

AMR has extensive experience as PKPU administrators in numerous complex cases. Contact us to discuss how PKPU can help your company.