The Peace Plan or Peace Proposal is a document containing an offer to schedule the payment of debtor debts to creditors in a manner agreed upon beforehand. The peace plan/proposal or peace proposal is accepted if approved at the creditors’ meeting by more than half of the attending concurrent creditors whose rights are recognized or provisionally recognized, and representing at least 2/3 of the total amount of recognized or provisionally recognized concurrent claims from concurrent creditors or their proxies present at the meeting. At the time of filing for PKPU (Suspension of Debt Payment Obligations), the debtor may submit a Peace Plan simultaneously or after filing for PKPU. The contents of the agreed-upon Peace Proposal must be implemented by the debtor as a form of accountability for their inability to pay overdue debts. Debt repayment by the debtor depends on the type of creditor. The types of creditors and the amount of debt compensation are as follows:
- First, there are Preferential Creditors, who have priority rights over other creditors, with privileges regulated in Article 1134 of the Indonesian Civil Code (KUHPER).
- Second, there are Separated Creditors, who have an interest in collateral as regulated in Article 138 of the Bankruptcy and PKPU Law.
- Third and finally, there are Concurrent Creditors. Concurrent Creditors are those without preferential rights. Therefore, the debtor will make payments after settling their debts to preferential creditors, but creditors have the right to demand debt repayment from the debtor based on agreements. Concurrent Creditors, being without preferential rights, are the weakest creditors and are most vulnerable to losses if the debtor defaults on debt payments according to the Peace Proposal. This can easily happen because the debtor prioritizes paying off their debts to Preferential Creditors first.
Article 170 (1) of Law Number 37 of 2022 states that creditors have the right to file for the Cancellation of the Peace Agreement with the Commercial Court if the debtor is proven to default or neglect the Peace Agreement. Negligence may include not fulfilling part of the peace proposal such as installment payments not matching the agreed-upon amount or time, or even not fulfilling any part of the peace proposal. The debtor is given 30 (thirty) days to fulfill their obligations, so if this period passes and the debtor still cannot prove they did not default, their status will revert to bankruptcy until the general bankruptcy seizure takes effect.