Denpasar — The Government of Indonesia is seeking to provide greater legal certainty for investors by reviewing the potential adoption of the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency (MLCBI).
“Indonesia is currently reviewing and discussing various international best practices, including the principles contained in the UNCITRAL Model Law,” said Deputy Minister of Investment and Downstream Industry/Deputy Head of BKPM Todotua Pasaribu, on the sidelines of the opening of the Indonesia Insolvency Conference (IIC) 2026 in Sanur, Denpasar, on Thursday.
He explained that BKPM has a strong policy interest in the implementation of the UNCITRAL Model Law, although it does not hold direct authority over insolvency matters.
While BKPM is not the primary regulator, Todotua said the institution supports relevant ministries and agencies in Indonesia in formulating cross-border insolvency policies to strengthen the country’s global competitiveness.
“We are also coordinating with the Coordinating Ministry for Economic Affairs, the State Secretariat, the Ministry of Law, and the Supreme Court in preparing a national action plan and strengthening legal certainty, dispute resolution, and insolvency mechanisms,” he added.
Through these efforts, he said, the Government hopes to provide greater confidence to investors, not only when starting a business in Indonesia, but also when facing insolvency-related challenges, including matters involving the restructuring of assets located outside Indonesia’s jurisdiction.
In his presentation, Todotua also noted that Indonesia is pursuing a number of policy measures, including the possibility of amending Law No. 37 of 2004 on Bankruptcy and Suspension of Debt Payment Obligations (PKPU), to accommodate the legal guidance contained in the UNCITRAL Model Law.
“This framework can be adopted by countries into their legal systems to accommodate cross-border insolvency. To date, more than 60 jurisdictions have adopted it,” he said.
The jurisdictions that have adopted the UNCITRAL Model Law include several major sources of investment into Indonesia, such as Singapore, Japan, South Korea, Australia, New Zealand, the United States, the United Kingdom, Canada, Gulf countries, and others.
Source from ANTARA News
Original news HERE
