The Relevance of the Pari Passu Pro Rata Parte Principle in the Distribution of Bankruptcy Estate Assets Among Concurrent Creditors

Abstract

This study aims to examine in depth the application of the paripassu prorata partij principle in the distribution of bankruptcy assets to concurrent creditors in the Indonesian bankruptcy legal system. This principle affirms that all concurrent creditors have equal standing and are entitled to a proportional distribution of bankruptcy assets based on the amount of their respective receivables. This principle reflects the spirit of distributive justice in bankruptcy law. However, in practice, the application of this principle often faces obstacles due to the existence of creditors with special rights, such as secured creditors and preferred creditors, who receive priority for payment in accordance with guarantees or statutory provisions. This condition creates an imbalance between theory and practice, and raises the issue of justice for concurrent creditors who are the most disadvantaged parties when bankruptcy assets are insufficient. The method used is a normative juridical method with a statutory, conceptual to analyze the suitability of the application of the paripassu prorata partij principle with the provisions of Law Number 37 of 2004 concerning Bankruptcy and Suspension of Debt Payment Obligations, as well as its relevance to the principles of justice and legal certainty. Thus, the paripassu prorata partij principle is not only a normative principle, but also functions effectively in creating a just bankruptcy system, guaranteeing legal protection for all creditors, and strengthening trust in the debt settlement mechanism in the Indonesian legal system.