Protection of Public Interests in the Process of the Indonesian Proprietary

Abstract

Protection of public interests in the bankruptcy process is regulated in the Indonesian Bankruptcy Law.
However, the implementation of this provision raises problems both in the concept design of the public
interest itself and in its protection mechanisms. The bankruptcy law provides at least three concepts of
public interest, each of which can be identified with the interests of the wider community as creditors, the
interest in the stability of the financial services sector, and the interests of state finances. The three concepts
of public interest are protected with exclusive and prerogative powers on the regulators and supervisors
as the authority of each field. Such protection mechanisms have so far only blocked the path of creditors
and debtors, and provided immunity to special debtors, as the majority of authorities do not want to file
bankruptcy requests and prefer to exercise their public powers.