This article provides general legal information as of 5 November 2026 and is not legal advice or a legal opinion on any specific case. For your situation, consult an advocate.

If an invoice goes unpaid, a creditor has three routes: a demand letter that puts the debtor in default (Article 1238 of the Indonesian Civil Code), a breach-of-contract claim at the district court, or a PKPU petition at the Commercial Court where the debtor has more than one creditor and at least one debt is due and payable (Article 222 in conjunction with Articles 2(1) and 8(4) of Law No. 37 of 2004, as applied in Commercial Court practice). In a PKPU, each creditor lodges its PKPU creditor claim with the administrator and then votes on the composition plan.[1][3]

The situation

Your invoice is three, six, even nine months overdue. The customer still replies, but payment is always "next week". Your cash flow takes the hit. Which legal step makes sense now?

Indonesian law offers three main routes for corporate debt collection Indonesia: a demand letter (somasi), a civil claim at the district court, and a PKPU petition at the Commercial Court. Each differs in cost, time and the chance of getting paid.

1. Demand letter: almost always the first step

A somasi is a formal written demand to pay by a deadline. Under Article 1238 of the Civil Code, a debtor is in default once served with such a demand, unless the contract already makes default automatic when the deadline passes.[1] It is the cheapest route, often triggers negotiation, and if ignored becomes evidence of default. The law does not set how many demands to send. In practice, two or three letters are sent 7 to 14 days apart, the last serving as a final warning before a lawsuit or PKPU. A demand also grounds a claim for costs, damages and interest under Article 1243.[1]

2. Lawsuit: whether the debt is admitted or disputed

If the debtor still does not pay after a demand, whether it admits or disputes the debt, a breach-of-contract claim at the district court is the right route. Claims up to IDR 500 million can use the small-claims procedure, decided within 25 working days of the first hearing, provided both parties are within the same court's jurisdiction, or the claimant appoints a representative based in the defendant's jurisdiction. Both parties must attend every hearing in person, with or without a representative.[2] A judgment does not guarantee payment: enforcement may still be needed through seizure and auction of the debtor's assets (HIR Articles 196–200 / RBg Articles 207–218).[7] According to the World Bank (Doing Business 2020), resolving a contract dispute through Indonesian courts, from filing the claim to enforcing the judgment, takes 403 days on average and costs 70.3% of the claim. The figures were measured in Jakarta and Surabaya, and the Doing Business series was discontinued in 2021.[5]

3. PKPU: the strongest pressure, with strict conditions

A creditor can file for PKPU against a debtor that has more than one creditor and at least one debt that is due and payable. The more-than-one-creditor requirement derives from Article 222 in conjunction with Articles 2(1) and 8(4) of Law No. 37 of 2004, as applied in Commercial Court practice.[3] Every creditor then lodges its PKPU creditor claim with the administrator and votes on the debtor's composition plan. If the plan is rejected, the debtor is declared bankrupt.[4] A disputed debt can lead the court to reject the petition, and recoveries are shared with other creditors. If the plan is approved and ratified, payment follows it, often in instalments or as a partial payment, and the plan binds all creditors except secured creditors who rejected it (Article 286 in conjunction with Article 281(2)). If the debtor is declared bankrupt, its assets are sold and the proceeds are paid in this order: bankruptcy costs and the receiver's fee, workers' wages, secured creditors, other employee entitlements, taxes and other preferred creditors, and finally unsecured creditors pro rata (Article 60(3) and Constitutional Court Decision No. 67/PUU-XI/2013).[4][6] The World Bank (Doing Business 2020) puts the average insolvency recovery rate in Indonesia at 65.5 cents on the dollar.[1][4][5]

At a glance

Frequently asked questions

How many demand letters must be sent before suing?

The Civil Code does not set a number. Article 1238 only requires that the debtor be served with a demand or a similar deed, unless the contract already makes default automatic when the deadline passes. In practice, two or three letters are sent 7 to 14 days apart so that the default is clearly documented.[1]

Can a creditor file for PKPU if the debtor has only one creditor?

No. In Commercial Court practice, a PKPU petition requires the debtor to have more than one creditor, based on Article 222 in conjunction with Articles 2(1) and 8(4) of Law No. 37 of 2004. If you are the only creditor, the available route is a demand letter followed by a breach-of-contract claim, including the small-claims procedure for claims up to IDR 500 million.[2][3]

How do I lodge a PKPU creditor claim, and how long does the process take?

The supervisory judge sets the last day for lodging claims. Before that date, the creditor submits a written claim to the administrator stating the nature and amount of the claim, with supporting evidence such as the contract and invoices. The entire PKPU period, including extensions, may not exceed 270 days from the temporary PKPU order.[4]

When to get advice

• The invoice is more than 90 days overdue and the first demand went unanswered.
• You hear the debtor is also behind with other suppliers or banks.
• You hold security (a personal guarantee or mortgage) and want to know your position.
• The debtor proposes a long instalment plan and you are unsure whether to accept.

SANDIVA helps you choose the most efficient recovery route, from a demand letter to PKPU, working with our Bankruptcy Administration team when the debtor owes many creditors. Learn more about our Debt Recovery Planning and Bankruptcy and Insolvency services (including PKPU), or discuss your claim with us via our Contact Us page or on WhatsApp at +62 857-5705-1234.

Sources

Bracketed numbers in the text refer to the list below. Accessed 4 November 2026.

[1] Indonesian Civil Code (Kitab Undang-Undang Hukum Perdata / Burgerlijk Wetboek, Staatsblad 1847 No. 23), Articles 1132, 1238 and 1243.

[2] Supreme Court Regulation (Perma) No. 2 of 2015 on the Small Claims Procedure, as amended by Perma No. 4 of 2019, Article 1 points 1 and 4, Article 3(1), Article 4(3a) and (4), and Article 5(3). JDIH BPK RI: Perma 2/2015 and Perma 4/2019.

[3] Law No. 37 of 2004 on Bankruptcy and Suspension of Debt Payment Obligations, Articles 2(1), 8(4), and 222(1) and (3). JDIH BPK RI: Law 37/2004.

[4] Law No. 37 of 2004, Articles 55, 60(3), 228(6), 268, 270, 281(2), 286 and 289. JDIH BPK RI: Law 37/2004.

[5] World Bank, Doing Business 2020: Economy Profile of Indonesia, published 24 October 2019. Enforcing Contracts: 403 days for the whole contract dispute, from filing the claim to enforcing the judgment, at a cost of 70.3% of the claim, measured in Jakarta and Surabaya. Resolving Insolvency: 65.5 cents on the dollar, 1.1 years. The Doing Business series was discontinued in 2021. IDN.pdf.

[6] Constitutional Court Decision No. 67/PUU-XI/2013, pronounced 11 September 2014, on the review of Article 95(4) of Law No. 13 of 2003 on Manpower (priority of wages and workers' rights in bankruptcy). JDIH Kemnaker: Decision 67/PUU-XI/2013.

[7] Herzien Inlandsch Reglement (HIR), Articles 196–200, and Rechtsreglement voor de Buitengewesten (RBg), Articles 207–218, on enforcement of judgments, execution seizure and auction.