<![CDATA[This study critically examines the application of bankruptcy law in Indonesia with a specific focus on debtors who still possess viable business prospects. Grounded in John Rawls’s theory of justice and Gustav Radbruch’s legal philosophy, the research evaluates whether the implementation of bankruptcy provisions promotes substantive justice or merely reinforces creditor dominance. Using a normative juridical method that combines statutory and case approaches, several landmark court decisions, including Supreme Court Decision No. 186 K/Pdt.Sus-Pailit/2015, were analyzed to assess judicial reasoning and its implications for economic recovery. The findings reveal that Indonesian courts predominantly emphasize debt repayment, often disregarding the debtor’s potential for business continuity. The rigid structure of Article 2 of the Bankruptcy Law tends to result in premature liquidation, contrasting with rehabilitative systems such as Chapter 11 in the United States. The study concludes that legal reforms are necessary to incorporate justice-oriented and rehabilitative mechanisms that balance the interests of creditors and debtors while supporting sustainable economic growth.]]>
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