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I the URGENCY of INSOLVENCY TEST to DECLARE BANKRUPT in INDONESIA (Applying the Theory of Balance Sheet Test Under U.S Bankruptcy Code)

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I the URGENCY of INSOLVENCY TEST to DECLARE BANKRUPT in INDONESIA (Applying the Theory of Balance Sheet Test Under U.S Bankruptcy Code) THE URGENCY OF INSOLVENCY TEST TO DECLARE BANKRUPT IN INDONESIA (Applying the Theory of Balance Sheet Test under U.S Bankruptcy Code) A BACHELOR DEGREE THESIS By: DINA KHAIRUNISYAH Student Number : 12.410.342 INTERNATIONAL PROGRAM DEPARTEMENT OF BUSINESS LAW FACULTY OF LAW UNIVERSITAS ISLAM INDONESIA 2016 I THE URGENCY OF INSOLVENCY TEST TO DECLARE BANKRUPT IN INDONESIA (Applying the Theory of Balance Sheet Test under U.S Bankruptcy Code) A BACHELOR DEGREE THESIS Presented as the Partial Fulfillment of the Requirements To Obtain the Bachelor Degree at Faculty of Law Universitas Islam Indonesia Yogyakarta By: DINA KHAIRUNISYAH Student Number : 12.410.342 INTERNATIONAL PROGRAM DEPARTEMENT OF BUSINESS LAW FACULTY OF LAW UNIVERSITAS ISLAM INDONESIA 2016 II III IV V VI CURRICULUM VITAE DINA KHAIRUNISYAH Born on 19 October 1994 – Address: Pasir Putih, RT 007/RW002, Balai Jaya, Rokan Hilir, Riau (28992) – 082328266665 – [email protected] EDUCATION High School : SMAN 1 Bagan Sinembah, Rokan Hilir, Riau (2009-2012) University : Faculty of Law (International Programme), Universitas Islam Indonesia 2012-2016) ORGANIZATION EXPERIENCE Student Exdecutive Organisation, Faculty of Law, Universitas Islam Indonesia (2012-2014) Department of Politic, Advocacy, Social and Relations. Advocating students for academic and non-academic issues before the Faculty‘s authorities. Organising activities related with the departement‘s function. Having experienced to be the Head of Orginising Committee in the event of State‘s Institutions Visit and Treasurer of Steering Committe in the event of National Seminar. Himpunan Mahasiswa Islam (Association of Islamic Students) (2012-2014 Fungtionary periode, 2012-present membership periode) Department of University, Relations and Social. Resposible in the supervision of student organisation, organising routine training and database making for alumni list. Forum of Research and Legal Writing (FKPH) Faculty of Law, Universitas Islam Indonesia (2013-2014) Department of Discussion. Responsible in organising routine discussion, involved in research on current legal issues. Juridical Council of International Program, Faculty of Law Universitas Islam Indonesia (2014-2015) Department of Human Resources and Development. Responsible in the recruitement of organisation‘s member helping members develop their personal and organisation skill, knowledge and ability. Student Legislative Organisation, Universitas Islam Indonesia (2015-2016) Head of Commission III. Managing finance of the organisation and supervising event‘s implementation in financial aspect, and subordinated organisation‘s expenditure. VII ACADEMIC ACTIVITY Undergraduate Thesis The Urgency of Insolvency Test to Declare Bankrupt in Indonesia (Applying the Theory of Balance Sheet Test under US Bankruptcy Act and Intorducing a two- step procedure to conclude a debtor‘s insolvent condition to Indonesian bankruptcy Act). Other Academic Works ―Protction to Minority Shareholder in Limited Liability Company based on Good Corporate Governance‖. ―The Necessity of Indonesian Government to Re-making Regulation and Policy Towad ASEAN Free Trade Area (AFTA)‖. ―The Liability of Director for Negligence resulting to the Company‘s Bankruptcy‖. London International Model United Nations, London, 26-28 February 2015 Speaking before the committee of ECOFIN as the representative of Rwanda. Researched and compiled position paper on ―Promotion for Sustained Economic Growth and the Sustainable Development of Small Island developing States‖ and ―Alternatives to Structural Adjustment Programmes and Austerity in overcoming Recession and Debt Crisis‖. Training, Conference and Discussion Often invited as moderator and speaker in student discussion, conference and tarining for law-related topic particularly on bankruptcy, contracts, private internasional law, partnership and non-law related issues. LANGUAGE PROFICIENCY Indonesian : Native Speaker English : Professional Proficiency (Speech, Reading, Wriitng) Yogyakarta, 27 October 2016 Sincerely, Dina Khairunisyah VIII MOTTO Verily in the remembrance of Allah do hearts find peace Q.S Ar-Ra‘d: 28 “Allah grant me the serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference.” - Reinhold Niebuhr “There are three classes of intellects: one which comprehends by itself; another which appreciates what others comprehend; and a third which neither comprehends by itself nor by the showing of others; the first is the most excellent, the second is good, and the third is useless.” - Niccolo Machiavelli “Even if you‟re on the right track, you‟ll get run over if you just sit there.” - Will Rogers IX DEDICATIONS My humble effort I dedicated to: The Almighty Allah SWT for the gracious mercy, tremendous blessing and guidance to me. The Prophet Muhammad SAW My beloved Father and mother, Parlindungan Simanjuntak and Warisih, the greatest grace in my life and my amazing sisters and brothers. X ACKNOWLEDGEMENT Asalamu‟alaikum Wr. Wb Asyhadu an Laa Ilaaha Illallah Wa Asyhadu Anna Muhammadan Rasuulullah. Alhamdulillahirabbil „alamiin, First and above all, I praise God, the almighty, for providing me this opportunity and granting me the capability to proceed successfully and to prophet Mohammed SAW, (Peace be upon him) whose way of life has been a continuous guidance for me.. This thesis appears in its current form due to the assistance, support and guidance of several people. I would therefore like to offer my sincere thanks to all of them. 1. Dr. Ir. Harsoyo, M Sc, as the Rector of Universitas Islam Indonesia 2. DR. Aunur Rahim Faqih, SH., M.Hum, as the Dean of Faculty of Law Universitas Islam Indonesia. 3. Dr. Siti Anisah, SH, M.Hum as the Thesis Advisor, who always support, advise and guide me, without her this paper would have never been accomplished. 4. Dr. Aroma Elmina Martha, SH., MH, as the Academic Advisors, all lectures and staff of International Program Faculty of Law especially to Mr. Setiawan SH who have given support and motivation. 5. Most importantly, none of this could have happened without my family. My parents father Parlindungan Simanjuntak, mother Warisih. I am forever XI indebted for your unconditional love and endless dua. My brothers Hendra Surya Dharma, Rendi Warisman, Saut Ferdinand, and Santosa. My sisters Siska Vinolia, Ana Pertiwi, and Tanti, who always supported me and encouraged me with their best wishes. My nephew Al-Fatih Hentajunio Fachreza and my new baby born niece Khaira Rumaisa. 6. My Language Advisor and prettiest best friend, Fasya Addina, SH who had shown me the meaning of friendship. 7. My precious Teddy Irawan Saputra, who always by my side during difficult situations. Thank you for always supporting and accompanying me all this time. 8. My seniors, Muhammad Azhar SH, Igfa Satria Artadi SH, Dolly Setiawan Silitonga SH, and my fellow Ardiansyah MM. I gained a lot from them, through their personal and scholar interactions, their thoughtful suggestion at various points of my study and life. 9. The everlasting brotherhood of IP 2012, Fasya Addina SH, Gemilang Mahardika SH, Lintang Gadis Kecil Berkulit Hitam dari Aceh VSSH, Uni Tsulasi Putri SH, Fikri Fadillah SH, Ebby CSH, Fitria Salsabila SH, Amelia Karina Ja‘far SH, Reza Fattah Ghalib CSH, Dadang Sadika CSH, Dion Kusuma SH, Meila Fajriah SH, Saadan Thandi CSH, Lukman SH, Windura Pranahita SH, Hanif Nur Ahmad CSH, Mazii CSH, Dimas SH, Ryan CSH, Gandar CSH. 10. My senior high school squad, Eka Rini Setiawati, Sri Susilawati, Indri Eprillya, Raja Wulandari, Rezky Lestari, you were the best partners at my XII lowest point. Thank you for always criticising and supproting me to be who I am now. 11. My second family in Yogyakarta, Himpunan Mahasiswa Islam. Mario Evantio, Zakiul Fikri, Afif Fuady, Baihaqqi Sinaga, Juliyani Purnama, Lian, Dyo Fariz, Dipo Septiawan SH, Amalia Maharani, Risang, Reynaldo J Brusandi, Billy Elanda, Gustirio, Retno Widiastuti, Naya, Indira, Andika Fadly, Mazhar, Jani, Dilla, Alfiah Hamzah, Ujig, Yoy. And many others I cannot mention. Alhamdulillah I am blessed to have them in my life. 12. My fellows in Dewan Permusyawaratan Mahasiswa Universitas Islam Indonesia 2015-2016, Aldhi Setyawan, Hakim, AD Zikri, Bela Nurditia, Alfredho Perdana, Bulgam Akbar, Daeng Ganda, Aulia Ridha SH, Anasti Limbong, Yoga Satria, Handsome Sobar, Wahyu Hidayat, Faisal Zakaria. Wassalamu‟alaikum Wr. Wb XIII ABSTRACT 1977 monetary crisis was a nightmare for the economy of Indonesia. Lending funds from the IMF was the last resort that should be taken by the government at that time conditionally to acceptance of the requirements given by the IMF one of which was to amending Law on Bankruptcy. The amendments were taken place three times while the enforcement of the laws still introduces many problems. One of them is many solvent debtors were declared bankrupt by the Commercial Court. This research is a normative legal research, thus the study was normative or mostly uses references from written legal norm. This research made legislations, regulation, provision and doctrine relevant to the present topic as sources. The data collecting method is library research that leads to formation of answer adopting descriptive- analytical explanation in line with the qualitative-descriptive method used by the writer. The primary legal binding materials are the Law number 37 of 2004 on Bankruptcy and the Suspension of Debt Payment Obligations as the main focus. Secondary legal materials, used to support the primary materials,
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