REFORMULATION OF LEGAL PROTECTION FOR SEPARATED CREDITORS IN EXECUTING COLLATERAL RIGHTS DURING THE PERIOD OF POSTPONEMENT OF DEBT PAYMENT OBLIGATIONS

Abstract

Reformulating legal protection for secured creditors in executing collateral rights during the Suspension of Debt Payment Obligations (PKPU) is a crucial step to achieve a balance between creditors’ rights and debtor’s debt restructuring objectives. During PKPU, which aims to provide debtors with an opportunity to restructure their debts, collateral execution is often delayed, resulting in uncertainty for secured creditors. The necessary reforms involve simplifying and clarifying collateral execution procedures and increasing legal certainty for secured creditors. This includes establishing a clear execution schedule, setting fair payment priorities, and transparency in the PKPU process. The main obstacles faced by secured creditors during PKPU include court delays in execution and administrative complications that hinder their access to collateral assets. In addition, secured creditors must compete with other creditors, which often complicates asset distribution and affects their rights to collateral. Reforms in PKPU regulations are essential to simplify collateral execution procedures and establish clearer payment priorities. With this reform, it is hoped that secured creditors will be able to claim their rights more effectively while supporting the main objective of PKPU, namely fair and sustainable debt settlement.