Indonesia’s Supreme Court has formally overturned a lower court’s bankruptcy order on mobile carrier Telkomsel.
The Indonesian telco had been declared bankrupt following a lawsuit filed by PT Prima Jaya Informatika, a mobile phone SIM card…
Indonesia’s Supreme Court has formally overturned a lower court’s bankruptcy order on mobile carrier Telkomsel.
The Indonesian telco had been declared bankrupt following a lawsuit filed by PT Prima Jaya Informatika, a mobile phone SIM card distributor. The Central Jakarta Commercial Court had delivered the verdict as Telkomsel had not repaid a Rp5.3bn (US$557,000) debt to Prima, according to local media reports.
An unrelated creditor had also complained that Telkomsel had not repaid its debt and, under Indonesian laws, a company can be declared bankrupt if it fails to repay two creditors, regardless of the amount or the company’s financial profile.
The case has highlighted ongoing calls to amend the country’s bankruptcy laws, which legal experts say are prone to abuse and could unnecessarily endanger companies.
