Indonesian Business Law: Legal Construction Between Bank-Creditor and Bank-Debitor in the Sub-Participation Contract

The papers aims to analyze the legal construction between bank-creditor and bank-debitor in the sub-participation contract, which apparently has not been well covered by the two legal fields in the event of a dispute, whereas the funds lent in the banking business are very important to immediately withdraw and run to extend credit to other sectors, or to support the liquidity. In the case of bankruptcy requests for the banks, Bank Indonesia is legally entitled to submit to the Commercial Court even not as a part of contract. However, the institution never once took a request to the Commercial Court. Even before Indonesian banking supervision adopted a multiple supervision of banking system. Bankruptcy Act 2004 does not legally entitled the right to the crditor directly, nor does Banking Act 1998 regulate the mechanism of creditor’ claim in the event of a sub-participation contract, other than complaining to Bank Indonesia to request being his “advocate(?)” to litigate to the court.