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PKPU

Understanding PKPU: A Restructuring Strategy That Preserves the Business

June 12, 2026 8 min read

PKPU is not the end of a business. With the right strategy, it can be the path to survival and renewal.

Suspension of Debt Payment Obligations (PKPU) is a mechanism under Law No. 37 of 2004 that gives a debtor the space to restructure its debts in the presence of its creditors.

Unlike bankruptcy, PKPU opens the door to a composition through a formal restructuring proposal. If a qualified majority of creditors approves the proposal, it is ratified (homologation) and becomes binding.

The keys to a successful PKPU are a realistic proposal, active communication with creditors, and transparent financial documentation. This is where professional legal support becomes critical.

The ADR Counsellors team represents both debtors and creditors — from planning the petition and verifying claims through to the homologation hearing.

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