The Corporate Rescue for Companies during the COVID-19 Pandemic in Indonesia: Prospects for the Concept of Deeds of Arrangement and Administration Order
Fl. Yudhi Priyo Amboro

International University of Batam
Jalan Gajah Mada, Batam, Indonesia
yudhi.amboro[at]gmail.com

Abstract

The COVID-19 pandemic has an impact to all countries, including Indonesia. This raises the problem of default debt. Rather than bankruptcy and suspension of payment (PKPU), it is better to look an alternative that become a savior for the company. This research explores the concept of Deeds of Arrangement and Administrative Order according to British law, and looking at the prospects for the concept of Deeds of Arrangement and Administrative Order for Indonesia. It is a normative juridical research, and it was processed with a qualitative approach supported by a comparative legal analysis. The conclusions of this research show that the concepts of the Deeds of Arrangement and Administrative Order are similar to the bankruptcy and PKPU schemes also have differences. The concept of the Deeds of Arrangement which is a contractual non-litigation and the Administrative Order which provides a better corporate management role, is the right solution during the COVID-19 pandemic rather than bankruptcy and PKPU, as well as other litigation. The temporary character of the COVID-19 pandemic condition is the basis of this thought, so a solution concept that leads to maximization of the corporate rescue rather than liquidation, is needed.

Keywords: Debt , Insolvency, Corporate Rescue, COVID-19 Pandemic

Topic: Investment and Settlement Disputes