ANALYSIS OF BANKRUPTCY LAW REFORM IN SEVERAL ASEAN COUNTRIES

Abstract

Bankruptcy law has an important role in maintaining economic stability and providing protection for the rights of creditors and debtors. Along with global economic changes and digitalization, countries in the ASEAN region, such as Singapore, Malaysia, and Thailand, Vietnam and the Philippines have made significant reforms to their bankruptcy legal systems. This article aims to analyze the trends of bankruptcy law reform in these countries and identify lessons that can be adopted by Indonesia. Through a normative-comparative approach, it was found that reforms in ASEAN emphasize the unification of insolvency rules, the strengthening of debt restructuring mechanisms, and the acceleration of the resolution of bankruptcy cases through legal innovation. On the other hand, Indonesia's bankruptcy legal system still faces various challenges, such as convoluted procedures, abuse of PKPU and the lack of protection for small creditors such as MSMEs. This article recommends the importance of updating legislation in Indonesia with an emphasis on codification of the law, more balanced protections and simplification of the litigation process to realize a bankruptcy legal system that is more adaptive and responsive to the times.