For investors and shareholders, Suspension of Debt Payment Obligations (“PKPU”) can feel uncertain, but it is important to view it as both a protective and strategic mechanism. PKPU allows a company to restructure debts without being immediately declared bankrupt, helping preserve enterprise value and reduce the risk of larger financial losses that often accompany liquidation.

However, PKPU also carries certain risks. Share values may fluctuate, dividend payments may be delayed, and share dilution may occur if restructuring involves a debt-to-equity conversion. Being aware of these potential outcomes and seeking timely legal advice is key to safeguarding your investment.

For public companies, PKPU must also be understood in light of capital market regulations. Law No. 8 of 1995 on Capital Markets requires companies to disclose material information, including PKPU developments, that may affect investment decisions. Regulations from the Financial Services Authority (Otoritas Jasa Keuangan or OJK) and the Indonesia Stock Exchange (IDX) further require transparent disclosure and protection of minority shareholders.

A key tool in PKPU is the composition plan, which outlines how the company will restructure its debts. Once approved by creditors and ratified by the court (homologation), the plan becomes binding for the company and all creditors. This gives investors clear insight into the company’s financial structure, operational continuity, and the legal framework for future corporate actions.

PKPU is not merely a reflection of corporate distress, it is a structured process designed to balance the interests of debtors, creditors, and investors. While certain shareholder rights may be limited temporarily, PKPU ensures the company can continue operating and that investors have a legal path to safeguard their interests.

Investors and shareholders are strongly advised to stay informed, monitor developments, and seek professional advice. Careful legal and financial analysis during the PKPU process is critical for protecting your investment and making sound decisions.

If you would like professional support in understanding PKPU, evaluating risks, or protecting your investments during corporate restructuring, Schinder Law Firm is ready to assist. Our experienced corporate and civil law team has guided numerous clients through similar situations and can provide tailored advice to safeguard your interests. Please contact us at info@schinderlawfirm.com to schedule a consultation.

Author:
Dewi Susanti