Alternative Settlement of Debts

Oct 13, 2025 by recoveryshake.com 37 views

Introduction

Law Number 4 of 1998 provides authority to the Prosecutor's Office to submit a request for bankruptcy based on public interest, as regulated in Article 1 paragraph (2). However, until now, this authority has never been carried out either after the enactment of the law or during the enactment of Faillisement Verordening in Staatsblad in 1905 Number 217 Jo Staatsblad in 1906 Number 348. This study aims to examine the prosecutors' functions in the current bankruptcy institution, criteria which is used by the Prosecutor's Office in determining the public interest, as well as the relevance of the prosecutors' authority in the bankruptcy institution towards investor protection.

Background

The Prosecutor's Office plays a crucial role in the bankruptcy institution, as it has the authority to submit a request for bankruptcy based on public interest. However, the implementation of this authority has been lacking, and the reasons behind this are not well understood. This study aims to provide a comprehensive analysis of the prosecutors' functions in the bankruptcy institution, including the criteria used to determine public interest and the relevance of the prosecutors' authority in protecting investors.

Methodology

The research conducted is normative with data collection methods through library research. Data was obtained from the study of documents and interviews with speakers, including the Assistant of Civil and State Administration, State Attorney Prosecutor, and the Chairman of the Medan Niaga District Court/Court. The analytical approach is carried out descriptively to provide a clear picture of the existing situation.

Prosecutors' Authority Analysis

The results showed that the prosecutor's office had not carried out its function in the bankruptcy institution as a party that could submit a bankrupt statement for public interest. There are several factors that cause this, including alternative settlement of debts, uncertainty in public interest criteria, inhibiting procedures, and lack of human resources in the prosecutor's environment.

Factors Contributing to the Lack of Prosecutors' Authority

Alternative Settlement of Debts: The existence of alternative settlement of debts has made it less necessary for the prosecutor's office to submit a request for bankruptcy. This has led to a lack of motivation for the prosecutor's office to carry out its function.
Uncertainty in Public Interest Criteria: The lack of clear criteria for determining public interest has made it difficult for the prosecutor's office to determine when to submit a request for bankruptcy.
Inhibiting Procedures: The procedures for submitting a request for bankruptcy are complex and time-consuming, which has discouraged the prosecutor's office from carrying out its function.
Lack of Human Resources: The lack of human resources in the prosecutor's environment has made it difficult for the prosecutor's office to carry out its function effectively.

Criteria for Determining Public Interest

In the existing provisions, there are no regulations governing the "public interest" in a limitative manner. The criteria used by the Prosecutor's Office to determine the public interest at least include the interests of the nation, the interests of the state, the interests of government, the interests of national development, and the interests of the wider community.

Relevance of Prosecutors' Authority in Bankruptcy Institution

The prosecutor's authority in the bankruptcy institution is crucial in protecting investors. However, the lack of implementation of this authority has made it less relevant to the increasing interest of investors to invest in Indonesia. This indicates that the prosecutor's function in this case has not been effective.

Recommendations for Improvement of the Prosecutor's Function

It is recommended that the prosecutor's office more active in finding information related to bankruptcy and increasing cooperation with related agencies and the community. In addition, to determine the criteria of public interest in submitting a request for bankruptcy statements, the prosecutor's office needs to continue to refer to Government Regulation Number 17 of 2000 and Law Number 5 of 1991 concerning the Prosecutor's Office of the Republic of Indonesia. The prosecutor's office also needs to carry out the mandate given by the Bankruptcy Law, especially in encouraging investors' interest in investing in Indonesia through the enforcement of bankruptcy law for the creation of justice and legal certainty.

Conclusion

The prosecutor's office has a crucial role to play in the bankruptcy institution, but its authority has not been effectively implemented. The lack of implementation is due to several factors, including alternative settlement of debts, uncertainty in public interest criteria, inhibiting procedures, and lack of human resources in the prosecutor's environment. It is recommended that the prosecutor's office more active in finding information related to bankruptcy and increasing cooperation with related agencies and the community. The prosecutor's office also needs to carry out the mandate given by the Bankruptcy Law, especially in encouraging investors' interest in investing in Indonesia through the enforcement of bankruptcy law for the creation of justice and legal certainty.

References

Law Number 4 of 1998
Government Regulation Number 17 of 2000
Law Number 5 of 1991 concerning the Prosecutor's Office of the Republic of Indonesia
Faillisement Verordening in Staatsblad in 1905 Number 217 Jo Staatsblad in 1906 Number 348
Prosecutors' Function in Bankruptcy Institutions according to Law Number 4 of 1998: Q&A =====================================================================================

Introduction

Q&A

Q: What is the role of the Prosecutor's Office in the bankruptcy institution?

A: The Prosecutor's Office has the authority to submit a request for bankruptcy based on public interest, as regulated in Article 1 paragraph (2) of Law Number 4 of 1998.

Q: Why has the Prosecutor's Office not carried out its function in the bankruptcy institution?

A: There are several factors that cause this, including alternative settlement of debts, uncertainty in public interest criteria, inhibiting procedures, and lack of human resources in the prosecutor's environment.

Q: What are the criteria used by the Prosecutor's Office to determine public interest?

A: The criteria used by the Prosecutor's Office to determine the public interest at least include the interests of the nation, the interests of the state, the interests of government, the interests of national development, and the interests of the wider community.

Q: Is the prosecutor's authority in the bankruptcy institution relevant to investor protection?

A: The prosecutor's authority in the bankruptcy institution is crucial in protecting investors. However, the lack of implementation of this authority has made it less relevant to the increasing interest of investors to invest in Indonesia.

Q: What are the recommendations for improvement of the prosecutor's function?

A: It is recommended that the prosecutor's office more active in finding information related to bankruptcy and increasing cooperation with related agencies and the community. In addition, to determine the criteria of public interest in submitting a request for bankruptcy statements, the prosecutor's office needs to continue to refer to Government Regulation Number 17 of 2000 and Law Number 5 of 1991 concerning the Prosecutor's Office of the Republic of Indonesia.

Q: What are the consequences if the prosecutor's authority is not carried out?

A: If the authority is not carried out, there is a possibility that the law will be reviewed, even revoked, and its authority can be transferred to other institutions or agencies.

Q: Why is it important for the prosecutor's office to carry out its function in the bankruptcy institution?

A: The active role of the prosecutor's office is very important to strengthen the bankruptcy and protection institutions for investors.

Q: What are the benefits of the prosecutor's office carrying out its function in the bankruptcy institution?

A: The benefits of the prosecutor's office carrying out its function in the bankruptcy institution include the creation of justice and legal certainty, the protection of investors, and the strengthening of the bankruptcy and protection institutions.

Q: How can the prosecutor's office improve its function in the bankruptcy institution?

A: The prosecutor's office can improve its function in the bankruptcy institution by being more active in finding information related to bankruptcy, increasing cooperation with related agencies and the community, and referring to Government Regulation Number 17 of 2000 and Law Number 5 of 1991 concerning the Prosecutor's Office of the Republic of Indonesia.

Q: What is the role of the community in the prosecutor's office carrying out its function in the bankruptcy institution?

A: The community can play a role in the prosecutor's office carrying out its function in the bankruptcy institution by providing information and cooperation to the prosecutor's office.

Q: What are the challenges faced by the prosecutor's office in carrying out its function in the bankruptcy institution?

A: The challenges faced by the prosecutor's office in carrying out its function in the bankruptcy institution include the lack of human resources, the complexity of procedures, and the uncertainty in public interest criteria.

Q: How can the challenges faced by the prosecutor's office be overcome?

A: The challenges faced by the prosecutor's office can be overcome by increasing the number of human resources, simplifying procedures, and providing clear criteria for determining public interest.

Q: What is the future of the prosecutor's office in the bankruptcy institution?

A: The future of the prosecutor's office in the bankruptcy institution is promising, as the prosecutor's office is expected to play a more active role in carrying out its function in the bankruptcy institution.

Q: What are the implications of the prosecutor's office carrying out its function in the bankruptcy institution?

A: The implications of the prosecutor's office carrying out its function in the bankruptcy institution include the creation of justice and legal certainty, the protection of investors, and the strengthening of the bankruptcy and protection institutions.

Q: How can the implications of the prosecutor's office carrying out its function in the bankruptcy institution be achieved?

A: The implications of the prosecutor's office carrying out its function in the bankruptcy institution can be achieved by the prosecutor's office being more active in finding information related to bankruptcy, increasing cooperation with related agencies and the community, and referring to Government Regulation Number 17 of 2000 and Law Number 5 of 1991 concerning the Prosecutor's Office of the Republic of Indonesia.