<![CDATA[Indonesia’s bankruptcy framework under Law No. 37 of 2004 on Bankruptcy and Suspension of Debt Payment Obligations allows a debtor to be declared bankrupt when it has two or more creditors and fails to fully pay at least one debt that has become due and collectible. However, the law does not expressly require an insolvency test to determine whether the debtor is genuinely unable to satisfy its obligations. This study examines the urgency of implementing an insolvency test as an additional requirement for bankruptcy in Indonesia and compares the Indonesian framework with the approaches adopted in Singapore and Hong Kong. The study employs doctrinal legal research supported by empirical inquiry and applies statutory, conceptual, and comparative approaches. The findings indicate that Indonesia’s existing bankruptcy requirements primarily establish default rather than actual insolvency, creating the possibility that financially viable debtors may still be declared bankrupt. By contrast, Singapore and Hong Kong place greater emphasis on the debtor’s inability to pay. The study further finds that the Cash Flow Test may serve as the primary assessment of a debtor’s payment capacity, while the Balance Sheet Test, asset valuation, and going-concern considerations may function as supporting indicators. The article contributes to the development of Indonesian bankruptcy law by proposing a more substantive threshold that better balances creditor protection, debtor viability, and legal certainty.]]>
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