Facts

• Section 1 on bankruptcy declaration states that a person can be declared bankrupt if he has two creditors or more with at least one debt that he is failing to pay. Under article 3, a petition filed by a married individual will only be accepted if the partner of the person agrees to it. Before a decision is made by the courts, a liquidator may be assigned to the individual to seize and sell all or some of the assets in order to recover the debt.
  
  

Social Stigma

• Despite the strict laws, according to a 1999 Melbourne University law review, the social stigma associated with bankruptcy means that the the number of bankrupt individuals is relatively low. Individuals who face bankruptcy often make an offer to the creditor to avoid bankruptcy, which is very often accepted.
  
  

Reform

• Indonesian bankruptcy law reforms since the Asian financial crisis of the 1990s were put in place to encourage more negotiation between creditors and debtors outside of court rather than to initiate bankruptcy proceedings. Bankruptcy proceedings have decreased over time since the reforms according to "Insolvency Law in East Asia."