Reinforcing Creditor Protection: The Imperative for The Cross-Border Insolvency Regulation

Daniel Hendrawan; Bernadette M. Waluyo; Johannes Gunawan

doi:10.14419/nngsr855

Article Details

Reinforcing Creditor Protection: The Imperative for The Cross-Border Insolvency Regulation

Authors:

Daniel Hendrawan | Bernadette M. Waluyo | Johannes Gunawan

Publisher:

Science Publishing Corporation

Journal:

International Journal of Accounting and Economics Studies Vol.12 Issue 7, pp.11-18

Document Type:

Article

Publication Date:

2/2025

Document Language:

English

Document ID (Org No.):

2001386285

pISSN:

2309-4508

DOI:

10.14419/nngsr855

Keywords:

Abstract:

 The rapid expansion of globalization has significantly increased cross-border economic activities, intensifying legal complexities in insolvency cases involving multinational entities. In Indonesia, Law No. 37 of 2004 on Bankruptcy and Suspension of Debt Payment Obligations governs domestic insolvency but lacks explicit provisions addressing cross-border insolvency. This regulatory gap exposes Indonesian creditors to heightened legal uncertainty and potential financial losses, particularly when debtor assets are located abroad and foreign ‎proceedings are not recognized domestically.‎
This paper critically examines the extent of legal protection afforded to Indonesian creditors in cross-border insolvency scenarios. ‎It evaluates the relevance and potential adoption of the UNCITRAL Model Law on Cross-Border Insolvency as a framework for reform. ‎Through a comparative analysis of Indonesia’s legal regime with that of Singapore and the Philippines, both of which have adopted the ‎Model Law. The study underscores the benefits of harmonized international insolvency procedures. Findings reveal that Indonesia’s current ‎reliance on reciprocity and ad hoc recognition mechanisms undermines predictability, judicial cooperation, and creditor confidence.‎
The study concludes by advocating for Indonesia’s adoption of the UNCITRAL Model Law to align its insolvency framework ‎with global standards. Such a reform would improve cross-border asset recovery, enhance creditor protection, and foster a more stable and ‎attractive investment environment‎.

Article Details

Reinforcing Creditor Protection: The Imperative for The Cross-Border Insolvency Regulation

Authors:

Daniel Hendrawan | Bernadette M. Waluyo | Johannes Gunawan

Publisher:

Science Publishing Corporation

Journal:

International Journal of Accounting and Economics Studies Vol.12 Issue 7, pp.11-18

Document Type:

Article

Publication Date:

2/2025

Document Language:

English

Document ID (Org No.):

2001386285

pISSN:

2309-4508

DOI:

10.14419/nngsr855

Bankruptcy Law

Creditor Protection

Cross-Border Insolvency

UNCITRAL Model Law.

Issues

Article Details

Reinforcing Creditor Protection: The Imperative for The Cross-Border Insolvency Regulation

Authors: Daniel Hendrawan | Bernadette M. Waluyo | Johannes Gunawan

Publisher: Science Publishing Corporation

Journal: International Journal of Accounting and Economics Studies Vol.12 Issue 7, pp.11-18

Document Type: Article

Publication Date: 2/2025

Document Language: English

Document ID (Org No.): 2001386285

pISSN: 2309-4508

DOI: 10.14419/nngsr855

Bankruptcy Law

Creditor Protection

Cross-Border Insolvency

UNCITRAL Model Law.

Issues

Authors:

Daniel Hendrawan | Bernadette M. Waluyo | Johannes Gunawan

Publisher:

Science Publishing Corporation

Journal:

International Journal of Accounting and Economics Studies Vol.12 Issue 7, pp.11-18

Document Type:

Article

Publication Date:

2/2025

Document Language:

English

Document ID (Org No.):

2001386285

pISSN:

2309-4508

DOI:

10.14419/nngsr855