<![CDATA[Bankruptcy law in Indonesia, as stipulated in Law No. 37 of 2004, faces challenges in balancing legal protection for insolvent companies with the settlement of unpaid debts. The principles of Economic Democracy from the 1945 Constitution provide the basis for inclusive economic regulation. This study employs a normative juridical approach, analyzing legislation and the implementation of Bankruptcy Law. Indonesian bankruptcy law recognizes the importance of business continuity, yet its implementation tends towards debtor asset liquidation. Legislative changes from Law No. 4 of 1998 to Law No. 37 of 2004 reflect an evolution in bankruptcy case handling, but there remains a need to further explore "corporate rescue" concepts as practiced internationally. Although Law No. 37 of 2004 has established more comprehensive mechanisms for bankruptcy resolution, the primary challenge remains balancing creditor protection with efforts to rescue insolvent companies. Further adjustments are necessary to enhance the effectiveness of legal protection for potentially bankrupt companies.]]>
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