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The Petitioners’ attorney Rene Tantrajaya in the revision hearing of the judicial review of the Bankruptcy Law, Monday (11/5) in the Courtroom of the Constitutional Court. Photo by Humas MK/Gani.

JAKARTA, Public Relations of the Constitutional Court—The Constitutional Court (MK) held another judicial review hearing of Law No. 37 of 2004 on Bankruptcy and Suspension of Debt Payment (KPKPU) for case No. 17/PUU-XVIII/2020 on Monday (11/5/2020) in the Plenary Courtroom of the Constitutional Court amidst COVID-19 pandemic.

Before starting the session, Constitutional Justice Enny Nurbaningsih as chairman of the panel informed the litigating parties that they may use the online courtroom facilities provided by the Constitutional Court. In order to be able to use the facilities, the parties are to request the Court to use the online courtroom facilities two days before the hearing by notifying their locations and the instruments that they have. Then they can join the hearing from their respective residences.

The Constitutional Court uses Cloudx and Zoom. In addition, the public can watch the hearing online through the Court’s YouTube channel’s livestream. “Should [you] want to know the technical information regarding the online courtroom facilities, you can contact [the Court’s] IT team through the Court’s summons officer,” she said.

The Petitioners through attorney Rene Putra Tantrajaya conveyed the revision to the petition following the justices’ advise in the previous session, including the change to the petitioners, initially the shareholders to the limited liability company PT Korea World Center Indonesia, represented by Executive Director Gi Man Song.

Rene also said that the background of the petition has been shortened. In the petitum, the Petitioner requests that the Court declare Article 235 paragraph (1) and Article 293 paragraph (1) of the KPKPU Law unconstitutional. “Therefore not legally binding and can be petitioned for review in the Supreme Court of the Republic of Indonesia,” Rene said.

Also read: South Korean Nationals Challenge KPKPU Law 

The Petitioners are South Korean investors and shareholders of foreign investment company PT Korea World Center Indonesia. In the petition, they confirmed that their constitutional rights and/or authority had been impaired de facto and de jure and they experienced legal discrimination due to the articles.

On November 28, 2018, the Petitioners were declared bankrupt, along with all legal consequences, in a case of Request for Delaying Debt Payment Obligation (PKPU). However, they believe they were declared bankrupt not because of debts but an obligation to pay the services of a mediator. They argued that the homologation was approved by all creditors, which should have been carried out and should not have been rejected by the judge only because there was no guarantee for the payment of the management team\'s fees.

The Petitioners’ attorney Rene Putra Tantrajaya said in the preliminary examination hearing on Thursday (5/3/2020) that the Petitioners had provided 7 (seven) written transfer instructions on an active account for payment of the fees, and they were received by the management team. They also requested a review of court decision, which was denied, as shown in Decision No. 83/PK/Pdt.Suspailit/2019. Therefore, the Petitioners requested that the Constitutional Court declare the a quo articles contrary to Article 28D paragraph (1) of the 1945 Constitution and not legally binding because they do not reflect the principle of justice, causing constitutional harm to both the Petitioners. With the limitation of legal remedies, it is possible that loopholes will be exploited to create an unfair business competition. (Utami/NRA)

Translated by: Yuniar Widiastuti

Translation uploaded on 05/13/2020

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