Company in the Shadow of Bankruptcy: A Test for Foreign Investment Interest

For developing countries striving to accelerate economic growth, foreign direct investment (FDI) is one of the main driving forces.

However, the entry and retention of foreign capital in the country depends heavily on one crucial foundation: legal certainty. When that foundation is shaken, global market confidence immediately dims.

This thorny issue has come to the fore amid the legal proceedings entangling PT Dua Kuda Indonesia, a subsidiary of the giant Chinese public company, Zanyu Technology Group Co., Ltd.

The case is not merely an internal corporate matter, but has become a sharp focus for the international business community regarding how Indonesia’s commercial justice system treats financially healthy foreign companies.

The case began when the Central Jakarta Commercial Court issued a bankruptcy ruling against PT Dua Kuda Indonesia. In fact, factually and fundamentally, the palm oil derivative processing company was operating normally with large production capacity and recording stable export performance.

One irregularity after another in the legal process triggered a wave of strong protests, from internal management, legal counsel, to thousands of workers.

The legal team for Dua Kuda Indonesia from ATS Law Firm revealed a major irony in the list of creditors, where one of the petitioners was actually recorded as having a large debt obligation to Dua Kuda Indonesia based on a court ruling in China.

“This is a clear example of how the abuse of bankruptcy law can become a weapon that destroys economic value. Our client is a healthy, solvent company operating normally,” said Dua Kuda Indonesia’s legal counsel Achmad Taufan Soedirdjo in an official statement in Jakarta on Sunday (9/8/2026).

The impact of the ruling immediately spread to international capital markets. The share price of the parent company in China, Zanyu Technology Group Co., Ltd., was reported to have been hit by a shock wave, touching the lower limit (auto reject lower) due to investor panic.