Journal Customary Law
Vol. 3 No. 3.1 (2026): ICLSSEE Special Collection

Legal Implications of the Suspension of Debt Payment Obligations (PKPU) Process for Legal Entity Debtors and Personal Guarantors from the Perspective of the Separate Legal Entity Doctrine

St. Luthfiani (Universitas Borobudur, Jakarta, Indonesia)
KMS Herman (Borobudur University, Jakarta, Indonesia)



Article Info

Publish Date
27 Jun 2026

Abstract

Suspension of Debt Payment Obligations (PKPU) is a legal instrument in bankruptcy. PKPU provides debtors with the opportunity to reorganize their debts through a settlement plan with creditors. In business practice, debtors in the form of legal entities are usually assisted by personal guarantors. Personal guarantors guarantee the debtor's obligations to creditors. This situation raises legal issues regarding the boundaries of liability between legal entity debtors and individual debt guarantors. The problem arises from the principle of separate legal entities. The principle of separate legal entities states that legal entities are independent. Legal entities have a separate legal personality from managers, shareholders, and other parties. This study aims to analyze the legal implications of PKPU applications for legal entity debtors. This study also analyzes the legal implications of PKPU applications for individual guarantors of debt. The analysis is conducted using the principle of separate legal entities. The study uses normative juridical legal methods. The researchers used three approaches: statutory, conceptual, and case studies in relevant commercial court decisions. The results indicate that a request for a Personal Assurance Payment for Debt for a legal entity debtor does not directly bind the individual debt guarantor. The two entities remain separate due to the principle of separate legal entities. However, a personal guarantee can expose the guarantor to liability if the debtor fails to pay the creditor. Therefore, the application of the separate legal entity principle must be understood proportionally. Consider the legal relationships arising from the debt guarantee agreement. This research contributes to the development of bankruptcy law studies. It provides legal certainty regarding the position of the individual guarantor in the Suspension of Debt Payment (PKPU) process

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Journal Info

Abbrev

jcl

Publisher

Subject

Law, Crime, Criminology & Criminal Justice

Description

Journal Customary Law is an international legal journal that publishes research and theoretical articles related to various legal fields. The journal aims to provide scholarly and authoritative articles that discuss legal issues of current importance to both academic research and legal practice. JCL ...