Legal Restriction of Bankruptcy of State-Owned Enterprise (Seo) and Sustainability: The Case of Indonesia

Purpose of Study: This research examines the possibility of state-owned enterprises being nailed in the legal system in Indonesia. According to the bankruptcy regulation in Indonesia, those who are unable to pay debts can be declared bankrupt by the creditors, including SOEs. However, other regulations state that the government’s assets (including those within SOEs) cannot be confiscated, including within bankruptcy confiscation. Methodology: The research method used in this study is qualitative research using the type of doctrinal law research. The approach used is to use the statutory approach, conceptual approach, and case approach. Data from this study were obtained from commercial courts in Jakarta and Surabaya. Main Findings: This study found that there was a desynchronization of the regulations regarding the SOEs’ bankruptcy, i.e., between the Bankruptcy Law and the other laws, and even points within the Bankruptcy Law itself. The example that can be taken in this study is PT Kertas Leces /Limited Liability Company (LLC) Kertas Leces) that had already gone bankrupt and experienced confiscation of its bankrupt assets. Implications: The ideal bankruptcy model for SOEs is that the bankruptcy applicants for SOEs in the form of public companies or state-owned companies should be the Minister of Finance. The Ministry of Finance is responsible for the operational policies and supervision of SOEs, amounting to approximately 115 companies in the form of public companies or state-owned companies, including those that have already gone public and those which have not. Novelty: Previous studies have only focused on the assets of state-owned enterprises that have been separated and therefore bankrupt. This study examines another matter, namely that not all state-owned enterprises can be declared bankrupt and found one state-owned bankruptcy.