(a) In relation to each type of insolvency procedure available in the legal system of Indonesia, what connection must there be between the debtor organization and the law of the forum? (For example, which of the following requirements, if any, must be satisfied in order for an insolvency procedure in relation to a corporate debtor in your economy:

- principal residence of debtor;

- domicile of the debtor;

- nationality of the debtor;

- personal whereabouts at the material time;

- location of a place of business, branch or agency;

- location of assets of debtor;

- place where transaction or event took place which gave rise to liability;

- place where payment, discharge or performance of liability is due to take place.)

Are any other requirements imposed in relation to a connection between the debtor and the forum before an insolvency procedure may be initiated? If so, briefly describe these requirements.

Article 2 of the Bankruptcy Law provides that the domicile of the debtor is the first basis by which the Commercial Court may assert bankruptcy jurisdiction. In the event a bankruptcy declaration is given with respect to a limited liability company, a mutual insurance company, a cooperative or other association with the status of a legal entity, or a foundation, the domicile of the manager is considered as the domicile of the debtor.

If the debtor has left Indonesia, the Commercial Court of its last domicile is authorized to issue a bankruptcy declaration.

In the event the bankruptcy declaration is pronounced against the partners of a firm, the Commercial Court in the domicile in which the firm is established has jurisdiction to issue the bankruptcy declaration.

If the concerned debtor is not domiciled within Indonesia, but practises his profession or his business in Indonesia, the Commercial Court which has jurisdiction over his office may issue a bankruptcy declaration.

If such bankruptcy declaration is issued by more than one authorized Commercial Court, but on different dates, the bankruptcy declaration which is first in time shall have legal effect. If the bankruptcy declaration is issued by different Commercial Courts on the same date with regard to the same debtor, then the Commercial Court in the jurisdiction of the bankrupt debtor’s domicile is authorized to issue the declaration.

Article 280(1) of the Bankruptcy Law stipulates that the request for a bankruptcy declaration must be filed with the Commercial Court in the jurisdiction of the debtor’s domicile. However, pursuant to Article 281(1) of the Bankruptcy Law, the first, and so far only, Commercial Court to be established is in Central Jakarta. Until Commercial Courts are established in other jurisdictions, the Central Jakarta Commercial Court is authorized to make declarations for the jurisdiction of Indonesia as a whole.

(b) Are any particular rules or conditions imposed in the legal system of Indonesia regarding the opening or commencement of an insolvency procedure in cases where the connection between the debtor and the forum is limited to only one of the factors mentioned in (a) above?

There are no particular rules, as mentioned above, since the domicile of the debtor is sufficient to commence an insolvency procedure.