Batavia Air Employees: Our Salaries Must be Prioritized

Happy Rayna Stephany, Mahinda Arkyasa

In response to the Central Jakarta Commercial Court decision to declare bankruptcy on Batavia Air operator PT Metro Batavia, hundreds of Batavia Air employees gathered to demonstrate in front of the courthouse on 14 March 2013.

The employees united in the demand that their salary must be prioritized over the IDR 309 billion tax debt that must be settled by Batavia Air.

Odie Hudiyanto, attorney for Batavia Air employees, argued that the salary must be prioritized because employees’ rights are protected under Law No. 13 of 2003 on Manpower, as well as Law No. 37 of 2004 on Bankruptcy and Postponement of Debt Settlement Obligations (Bankruptcy Law). Meanwhile, tax debt is only protected by Bankruptcy Law.

“Tax debt is only covered by one law, while employees’ salary is covered by two. So employees’ rights must be prioritized,” he said on Thursday (14/3).

Commenting on this issue, Teddy Anggoro, lecturer on bankruptcy law at Universitas Indonesia, agreed that bankruptcy receivers should prioritize employees’ salaries.

However, Teddy asserted that based on Article 18 (1) of Bankruptcy Law, Batavia Air’s bankruptcy status should be revoked if bankruptcy assets are not enough to settle all of the company’s debts.

Furthermore, Teddy explained that if the bankruptcy status is revoked, Batavia Air would have a better chance of settling its debts because there is no time limitation.

Meanwhile, one of Batavia Air’s bankruptcy receivers Turman M Panggabean stated that bankruptcy assets will be distributed proportionally and no preferences will be given out.

He further argued that Batavia Air’s bankruptcy status should not be revoked because it will reflect negatively on the ability of bankruptcy receivers to settle bankruptcy cases.

“[Revoking the bankruptcy status] means that the bankruptcy receiver has failed its duties and tasks,” he concluded to hukumonline on Thursday (21/3).

(jt)

Happy Rayna Stephany, Mahinda Arkyasa

In response to the Central Jakarta Commercial Court decision to declare bankruptcy on Batavia Air operator PT Metro Batavia, hundreds of Batavia Air employees gathered to demonstrate in front of the courthouse on 14 March 2013.

The employees united in the demand that their salary must be prioritized over the IDR 309 billion tax debt that must be settled by Batavia Air.

Odie Hudiyanto, attorney for Batavia Air employees, argued that the salary must be prioritized because employees’ rights are protected under Law No. 13 of 2003 on Manpower, as well as Law No. 37 of 2004 on Bankruptcy and Postponement of Debt Settlement Obligations (Bankruptcy Law). Meanwhile, tax debt is only protected by Bankruptcy Law.

“Tax debt is only covered by one law, while employees’ salary is covered by two. So employees’ rights must be prioritized,” he said on Thursday (14/3).

Commenting on this issue, Teddy Anggoro, lecturer on bankruptcy law at Universitas Indonesia, agreed that bankruptcy receivers should prioritize employees’ salaries.

However, Teddy asserted that based on Article 18 (1) of Bankruptcy Law, Batavia Air’s bankruptcy status should be revoked if bankruptcy assets are not enough to settle all of the company’s debts.

Furthermore, Teddy explained that if the bankruptcy status is revoked, Batavia Air would have a better chance of settling its debts because there is no time limitation.

Meanwhile, one of Batavia Air’s bankruptcy receivers Turman M Panggabean stated that bankruptcy assets will be distributed proportionally and no preferences will be given out.

He further argued that Batavia Air’s bankruptcy status should not be revoked because it will reflect negatively on the ability of bankruptcy receivers to settle bankruptcy cases.

“[Revoking the bankruptcy status] means that the bankruptcy receiver has failed its duties and tasks,” he concluded to hukumonline on Thursday (21/3).

(jt)

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