Helping businesses through tough times
The lingering effect of Covid-19 pandemic continues to be felt by businesses that are still struggling to stay in business and develop a future path for their businesses.
Bali Business Circlehosted by Discovery of Bali and Bali Updateinvited leading financial and legal experts to engage with business leaders in Bali at a seminar titled “Recovering Bali, to recover from a pandemic.”
The seminar at Swissbel Hotel in Sanur. balion Thursday, September 08, 2022, was opened by Putu Subada Kusuma, the vice-president of the Bali Tourism Boardwho is also vice president of the legal division of the Indonesian Hotel and Restaurant Association (PHRI).
Dr. Jimmy Simanjuntak, SH, MH, bankruptcy law expert and former chairman of the Association of Curators and Administrators (AKPI); Dr. Ricardo Simanjuntak, SH, LL.M., ANZIIF., MCIArb, bankruptcy law expert and former head of certification board of AKPI; Veronica Situmorang, SH MKn, Managing Partner Situmorang & Partners Lawyers and an approved curator; Firdaus Siddik, investment banker and management professional; and David Harrison. International Advisor and Legal Advisor.
The topics discussed in Bali, as reported by MediaJustitia.comincluded:
- The Balinese and Indonesian economy as it rebuilds after COVID-19.
- Strategies and tactics to prevent insolvency and defer payment requests
- PKPU: How and when to use this government-approved procedure to avoid bankruptcy.
- Assess the “true valueof a business after a prolonged economic downturn.
- Identify new sources of capital to help with business recovery.
- Create communication strategies with creditors, shareholders, banks and tax authorities.
- Managing expectations and mindsets in the restructuring process. Create lasting partnerships for successful financial restructuring.
Veronica Situmorang told the assembly that in 2019, the tourism sector generated almost 4.8% of the Indonesian market Gross domestic product. This compares to 2018, when total foreign exchange generated by the tourism sector was $19.2 billion, 40% of which came from Bali. In 2019, 6,275 foreign tourists visited Bali, where 328,000 people work in tourism professions.
In response to the global pandemic, the Indonesian government has taken steps to limit travel, social gatherings and business hours.
The Bali meeting allowed participants to exchange ideas and personal experiences in the face of the persistent economic crisis.
Dr Jimmy Simanjuntak, quoted by media justicesaid the biggest hurdle Bali faces in financial restructuring is the lack of in-depth understanding of legal issues, especially as it relates to the government PKPU program which facilitates the deferral and rescheduling of the Company’s debts. “A comprehensive understanding of the efficiency and effectiveness of the PKPU program. That is what we are doing by presenting this insightful seminar which aims to broaden the perspective and share the understanding that there is no need to worrying about the economic crisis and how to reorganize and restructure their financial obligations in the future,” Jimmy explained.
During the seminar, Dr. Ricardo Simanjuntak explained the detailed functions and meanings of Indonesian bankruptcy, insolvency and PKPU and their application to corporate debt settlement. “When the debts are under control, it will be easier to invite investors. That’s why we gave the seminar the theme of “recovering Bali”, explains Ricardo.
Veronica Situmorang detailed the options available to entrepreneurs restructuring their businesses in terms of private law. “Several options are available: issue new shares, sell existing assets to increase liquidation, invite/perform merger transactions, reduce operational costs, restructure privately with selected debtors and renegotiate terms of major agreements and obligations” , she commented.
Veronica added that there are bound to be ups and downs in running a business. Stressing that options should be explored to deal with potential bankruptcy or insolvency, she said it is best to explore all opportunities to avoid legal issues; this includes the use PKPU restructure and allow the company to continue to operate.
Seen from a local perspective, Veronica added, “I marvel at the Balinese desire to always avoid trouble. They always tend to try to solve problems quickly, no matter what. Even if you have to sell everything and start all over again.
The experts attending the seminar expressed the hope that businessmen will be able to use the information presented to overcome the financial problems that arise as a result of a setback caused by the COVID-19[feminine] pandemic allowing businesses to restart or stabilize depending on their existing legal issues. Armed with an understanding of PKPU Policycompanies can create synergies and cooperate to take effective and efficient next steps.
This involves having a good knowledge of PKPU so they can create synergy and understand which steps are practical and effective.