THE URGENCY OF INSOLVENCY AND POSTPONEMENT DEBT PAYMENT OBLIGATIONS MECHANISMS FOR MSMES AND COMPARISON WITH AUSTRALIA
Abstract
This paper analyzes the urgency of the Insolvency and Postponement of Debt Payment Obligation mechanism for Micro, Small and Medium Enterprises (MSMEs) in Indonesia and comparisons of the concept of implementing Insolvency and Postponement of Debt Payment Obligation mechanism practices for MSMEs in Australia. This paper is made by applying doctrinal research methods. The research concludes that it is important to develop an insolvency mechanism for MSMEs considering that insolvency in Indonesia is still oriented towards corporate insolvency. There is a need for a more efficient and cost-effective insolvency procedure, which is expected to help MSMEs to restructure debts so that they do not need to go insolvency. Through a cross-border insolvency mechanism, it can provide legal certainty, to overcome the business recovery of business actors, including MSMEs. The application of the Model Law in Australia can be a strategic step in the context of modernizing the insolvency legal framework in Indonesia.
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DOI: https://doi.org/10.24815/sklj.v8i3.43162
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