Deregulation Policy of Bankruptcy Regulation in Effort To Promote The Indonesian Ease of Doing Business

Abstract

The resolution of bankruptcy cases is an integral part of supporting ease of doing business in Indonesia. This study aims to analyze the effect of deregulation policies, especially bankruptcy regulations in Indonesia on the ease of doing business. This helps investors determine the ranking of the ease of doing business in Indonesia and if there is a conducive investment climate, which in the end is expected to boost Indonesia's economic growth. This study utilizes primary and secondary data sources. Primary data is obtained from focus group discussions (FGD), while secondary data is gathered from documentation from related institutions. Qualitative methods and NVivo analysis tools were used to analyze the data. The findings demonstrate that in practise, debt settlement issues are resolved through bankruptcy institutions. There are numerous issues, and the Bankruptcy Law is deemed to be overly simplified and excessively easy for debtors to declare bankruptcy. Provisions contained in Law no. 37 of 2004 pertaining to Bankruptcy and PKPU are no longer relevant to the development of business practices, such as those regarding the implementation of bankruptcy, the magnitude of the bankruptcy rate and rules pertaining to the instigators of the bankruptcy. According to the recommendations of this study, implementing adjustments to Law No. 37 of 2004 concerning Bankruptcy and PKPU should be a top priority and should start as soon as possible if they are to be included in a scheduled economic policy package.