Bankruptcy lawsuits decline by 54% in 2003<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
Bankruptcy lawsuits have dropped significantly this year,
\nwhich legal experts said indicated a growing distrust of the
\nbusiness community in the existing judicial system.<\/p>\n
Bankruptcy litigation filed with the commercial court dropped
\nby 54 percent to only 27 cases in the first nine months of the
\nyear compared to the same period last year, according to the
\nIndonesian Association of Curators (AKPI).<\/p>\n
AKPI deputy chairman Amir Abadi Jusuf said on Thursday that
\ncompanies now felt more comfortable settling commercial disputes
\nwith the help of independent mediators rather than at court.<\/p>\n
\"This is an indication of distrust toward our murky legal
\nsystem. Business players now think twice before deciding to take
\ntheir cases to court,\" he said on the sidelines of a seminar on
\nbankruptcy.<\/p>\n
Another AKPI executive, Ricardo Simanjuntak, said that many of
\nhis clients refused to settle their commercial disputes at court,
\nbecause there were a lot of uncertainties at court. Furthermore,
\nthey considered the fees they had to spend on lawyers were not
\nworth the results.<\/p>\n
For example, under the existing law, judges must deliver
\nverdicts no later than 30 days after the first hearing. But, in
\npractice they often violate this rule, leaving disputing parties
\nwith uncertainties, he said.<\/p>\n
\"Dealing with the court is just frustrating. Out-of-court
\nsettlements are more favorable nowadays because they are faster,
\nless costly and more reliable. Mediation provides a win-win
\nsolution that satisfies both parties,\" he said.<\/p>\n
Amir and Ricardo urged the government and legislators to
\nimmediately deliberate the revision of the Bankruptcy Law, because
\nit had many inconsistencies and loopholes that could lead to
\nmisinterpretations and erroneous verdicts.<\/p>\n
They also urged the government to sweep corrupt judges and
\nlawyers out of the country's judiciary, as it would never be able
\nto reform the legal system if corrupters remained.<\/p>\n
Meanwhile, Erwin M. Malau, a senior judge at the Jakarta
\nCommercial Court, confirmed the decline in the number of
\nbankruptcy lawsuits filed with the court this year, but he
\ndisagreed this indicated a rise in distrust toward the judicial
\nsystem.<\/p>\n
\"Yes, there is a decline in the number of bankruptcy lawsuits
\nfiled with the court, but this doesn't mean it can be used to
\ndiscredit the court,\" said Erwin.<\/p>\n
He explained the decline was merely because more business
\nplayers this year had settled out-of-court.<\/p>",
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"sponsor": "Okusi Associates",
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