Before you vote on a composition plan: five questions every creditor should ask

In a PKPU (suspension of debt payment obligations) or a bankruptcy, the most important decision most creditors will make is a single vote: whether to accept the debtor’s composition plan (rencana perdamaian). Once the Commercial Court ratifies (homologasi) a plan, it binds the creditors it covers — including those who voted against it. A vote cast without a clear view of the alternatives is hard to undo.

The rules are set out in Law No. 37 of 2004 on Bankruptcy and Suspension of Debt Payment Obligations. Before you vote, we suggest asking five questions.

1. Has my claim been verified, in the right amount and the right class?

Your vote is weighed by the size of your claim as recognised at the claims verification meeting (rapat pencocokan piutang). In a PKPU, a plan passes only if it is approved by more than half of the concurrent creditors present, representing at least two-thirds of the concurrent claims present, and by more than half of the secured creditors present, representing at least two-thirds of their claims (Article 281(1)). In a bankruptcy, only concurrent creditors vote (Article 151).

If your claim was disputed, reduced or placed in the wrong class, raise it before the vote, not after. A claim that is not recognised may carry little or no weight.

2. What would I recover if the plan failed?

A composition plan should be measured against the realistic alternative. In a PKPU, a rejected plan means the debtor is declared bankrupt (Article 289), and creditors are paid from the liquidation of the estate. Ask the administrator (pengurus) or the curator for the best available estimate of what concurrent creditors would receive in a liquidation, and how long it would take.

The comparison matters for another reason: the court must refuse to ratify a plan if the value of the estate is substantially greater than the amount agreed in the plan (Articles 159(2) and 285(2)).

3. Is performance actually secured?

A plan is a promise to pay later. Look for what stands behind it: a fixed payment schedule, security over identified assets, a guarantor, an escrow mechanism, or an independent party monitoring performance. The court may also refuse ratification if performance of the plan is not sufficiently guaranteed. A plan that rests entirely on the debtor’s future business performance, without any protection, deserves closer scrutiny.

4. Are all creditors in my class treated alike?

Read the plan for side arrangements: affiliated creditors who vote with the debtor, creditors who receive better terms outside the plan, or claims that appeared late and in large amounts. A plan reached through fraud, or through collusion with one or more creditors, is a ground for the court to refuse ratification. If you see signs of this, record your objection at the meeting and before the ratification hearing.

5. What happens if the debtor defaults after ratification?

Ratification is not the end. If the debtor fails to perform a ratified plan, creditors can ask the court to cancel it, and the debtor is then declared bankrupt (Articles 170 and 291). Check whether the plan defines default clearly, and whether any security or guarantee remains available to you after cancellation.

Secured creditors should note one further point: a secured creditor who does not approve a PKPU plan is entitled to compensation for the lower of the value of its collateral or the actual amount of its secured claim (Article 281(2)).

In short

Vote on the plan you have read, not on the summary presented at the meeting. Confirm your claim and class, compare the plan with liquidation, check what secures performance, look for unequal treatment, and know your remedies on default.

Our founder holds the Curator and Administrator licence issued by the Ministry of Law, and we act for creditors and debtors before the Commercial Court. If you are weighing a composition plan, we can review it with you before the vote.