The Rationalization of Debt Discharge Policy for Individual Debtors in Indonesian Bankruptcy Regime

The Indonesian bankruptcy regime tends to be harsh to the debtors, especially the individual debtors. In contrast, the creditors possess the right to pursue the debtor’s outstanding debts even after the bankruptcy process. For that reason, this article aims to argue why it is rational for the Indo...

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Main Authors: Robert Robert, Rosa Agustina, Bismar Nasution
Format: Article
Language:English
Published: Sriwijaya University 2022-01-01
Series:Sriwijaya Law Review
Subjects:
Online Access:https://journal.fh.unsri.ac.id/index.php/sriwijayalawreview/article/view/928
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author Robert Robert
Rosa Agustina
Bismar Nasution
author_facet Robert Robert
Rosa Agustina
Bismar Nasution
author_sort Robert Robert
collection DOAJ
description The Indonesian bankruptcy regime tends to be harsh to the debtors, especially the individual debtors. In contrast, the creditors possess the right to pursue the debtor’s outstanding debts even after the bankruptcy process. For that reason, this article aims to argue why it is rational for the Indonesian government to implement a debt discharge policy in the Indonesian bankruptcy regime. This article employs a normative research method, using a conceptual and comparative approach. The result of this study is based on the debtor cooperation theory and the humanitarian theory of debt discharge. Hence, it is rational for the Indonesian government to implement a debt discharge policy for individual debtors. The first and second Sila of Pancasila is also in line with these theories. Consequently, as a member of society, the individual debtor should be treated with dignity and humane values, which includes debt forgiveness. Nevertheless, not every debtor is deserves to be discharged from his debts. Therefore, it is rational for the Indonesian government to implement the debt discharge policy in the amendment of Indonesian bankruptcy law to protect the honest but unfortunate individual debtors.
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spelling doaj-art-c408965290a641aa9d1de1486e54fedc2025-08-24T02:36:03ZengSriwijaya UniversitySriwijaya Law Review2541-52982541-64642022-01-016110.28946/slrev.Vol6.Iss1.928.pp101-121405The Rationalization of Debt Discharge Policy for Individual Debtors in Indonesian Bankruptcy RegimeRobert Robert0Rosa Agustina1Bismar Nasution2Doctoral Program in Law, Universitas Indonesia, Jakarta, IndonesiaFaculty of Law, Universitas Indonesia, Jakarta, IndonesiaFaculty of Law, Universitas Sumatera Utara, Medan, IndonesiaThe Indonesian bankruptcy regime tends to be harsh to the debtors, especially the individual debtors. In contrast, the creditors possess the right to pursue the debtor’s outstanding debts even after the bankruptcy process. For that reason, this article aims to argue why it is rational for the Indonesian government to implement a debt discharge policy in the Indonesian bankruptcy regime. This article employs a normative research method, using a conceptual and comparative approach. The result of this study is based on the debtor cooperation theory and the humanitarian theory of debt discharge. Hence, it is rational for the Indonesian government to implement a debt discharge policy for individual debtors. The first and second Sila of Pancasila is also in line with these theories. Consequently, as a member of society, the individual debtor should be treated with dignity and humane values, which includes debt forgiveness. Nevertheless, not every debtor is deserves to be discharged from his debts. Therefore, it is rational for the Indonesian government to implement the debt discharge policy in the amendment of Indonesian bankruptcy law to protect the honest but unfortunate individual debtors.https://journal.fh.unsri.ac.id/index.php/sriwijayalawreview/article/view/928BankruptcyDebt dis-chargeIndividual DebtorsIndonesia.
spellingShingle Robert Robert
Rosa Agustina
Bismar Nasution
The Rationalization of Debt Discharge Policy for Individual Debtors in Indonesian Bankruptcy Regime
Sriwijaya Law Review
Bankruptcy
Debt dis-charge
Individual Debtors
Indonesia.
title The Rationalization of Debt Discharge Policy for Individual Debtors in Indonesian Bankruptcy Regime
title_full The Rationalization of Debt Discharge Policy for Individual Debtors in Indonesian Bankruptcy Regime
title_fullStr The Rationalization of Debt Discharge Policy for Individual Debtors in Indonesian Bankruptcy Regime
title_full_unstemmed The Rationalization of Debt Discharge Policy for Individual Debtors in Indonesian Bankruptcy Regime
title_short The Rationalization of Debt Discharge Policy for Individual Debtors in Indonesian Bankruptcy Regime
title_sort rationalization of debt discharge policy for individual debtors in indonesian bankruptcy regime
topic Bankruptcy
Debt dis-charge
Individual Debtors
Indonesia.
url https://journal.fh.unsri.ac.id/index.php/sriwijayalawreview/article/view/928
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