Counting Creditor Votes - At Least One Vote for Every Creditor

The Government has recently issued Regulation No. 10 of 2005 on Counting Creditor Votes to facilitate the implementation of Article 87(3) of Law No 37 of 2004 on Bankruptcy and the Suspension of Debt Payments (the “Bankruptcy Law”). The Regulation deals specifically with the rights of creditors to vote in any meeting that is called to determine any matter related to the bankrupt assets.

Article 1 simply states that every creditor has a vote at any creditors meeting called. Every creditor that is owed up to IDR 10 million is entitled to 1 vote. Every creditor that is owed IDR 10 million or more is entitled to 1 vote for the first IDR 10 million and 1 additional vote for every IDR 10 million after that. However, where there is not a full IDR 10 million additional then the vote is calculated around IDR 5 million. That is up to IDR 5 million - no additional vote and for amounts between IDR 5 and 10 million - 1 additional vote. For example where a creditor is owed IDR 14 million, the creditor is entitled to 1 vote. However, where a creditor is owed IDR 16 million, then that creditor is entitled to 2 votes.