Indonesia’s vibrant business landscape offers substantial opportunities. Nevertheless, there are certain aspects that creditors must be aware of to better protect their interests when local partners or debtors face financial distress. For foreign creditors and investors, understanding the legal mechanisms available when Indonesian counterparties become insolvent or financially unstable is essential.

Indonesia’s growing economy offers a wealth of opportunities for foreign investors. Nonetheless, as in any jurisdiction, investors should obtain proper advice before entering commercial engagements with local counterparties.

The COVID-19 pandemic has caused more economic harm to Indonesia than the subprime mortgage crisis in 2008. As part of efforts to check the spread of the virus, the Indonesian government has implemented a policy of Large-Scale Social Restrictions (Pembatasan Sosial Berskala Besar or “PSBB”), requiring most businesses to cease or at least pare down activities.