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Abstract
This study analyzes the legal vacuum in the restructuring process of non-legal entity companies in Indonesia, such as Sole Proprietorships (UD), Limited Partnerships (CV), Firms, and Civil Partnerships (Maatschap). Utilizing a normative juridical method with a conceptual and statutory approach, the research identifies the legal barriers faced by non-legal entity companies in restructuring. The findings reveal that the absence of specific regulations creates legal uncertainty and significant risks for business owners in overcoming financial difficulties. The study recommends the need for clear legal regulations, including partnership models and restructuring mechanisms, to support the sustainability and competitiveness of non-legal entity companies in Indonesia. In conclusion, more comprehensive regulations are required to foster a conducive and sustainable business environment for this sector.
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References
- Armour, John, & Sako, Mari. (2020). AI-enabled business models in legal services: from traditional law firms to next-generation law companies? Journal of Professions and Organization, 7(1), 27–46.
- Baranovska, Vira, Zavertneva-Yaroshenko, Valeriia, Dryshliuk, Volodymyr, Leshanych, Myroslav, & Huk, Iryna Mariia. (2022). Legal regulation of public-private partnership relations and protection of the interests of business entities in Ukraine. Amazonia Investiga, 11(50), 99–108.
- Damijan, Jože P. (2018). Corporate financial soundness and its impact on firm performance: Implications for corporate debt restructuring in Slovenia. Post-Communist Economies, 30(2), 156–192.
- DePamphilis, Donald. (2019). Mergers, acquisitions, and other restructuring activities: An integrated approach to process, tools, cases, and solutions. Academic Press.
- Ferreira, Jorge, Coelho, Arnaldo, & Moutinho, Luiz. (2020). Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation. Technovation, 92, 102061.
- Frank, Alejandro G., Mendes, Glauco H. S., Ayala, Néstor F., & Ghezzi, Antonio. (2019). Servitization and Industry 4.0 convergence in the digital transformation of product firms: A business model innovation perspective. Technological Forecasting and Social Change, 141, 341–351.
- Kotter, John P., Akhtar, Vanessa, & Gupta, Gaurav. (2021). Change: How organizations achieve hard-to-imagine results in uncertain and volatile times. John Wiley & Sons.
- Mahy, Petra. (2013). Evolution of the corporate form in Indonesia: an exploration of legal innovation and stagnation. A Revised Version of This Paper Has Been Published in American Journal of Comparative Law, 61.
- Ndege, Mary Wanjiku, & Ogollah, Kennedy. (2020). Effects of corporate restructuring on performance of international organizations: A case of International Finance Corporation. International Research Journal of Business and Strategic Management, 1(1).
- Odetola, Oluwadamilola. (2018). Corporate Debt Restructuring and the Global Harmonisation Process: Emerging Trends in Africa. University of Kent (United Kingdom).
- Paterson, Sarah. (2020). Corporate reorganization law and forces of change. Oxford University Press.
- Rashid, Chnar Abdullah. (2018). Efficiency of financial ratios analysis for evaluating companies’ liquidity. International Journal of Social Sciences & Educational Studies, 4(4), 110.
- Ray, Kamal Ghosh. (2022). Mergers and acquisitions: Strategy, valuation and integration. PHI Learning Pvt. Ltd.
- Sultoni, Wahyudi, Suryandari, Wieke Dewi, & Susilowati, Tri. (2024). Urgency of Legal Reform for Restructuring Non-Legal Entity Companies. Devotion: Journal of Research and Community Service, 5(11), 1440–1450.
- Tan, Kendry, Amboro, Yudhi Priyo, & Syarief, Elza. (2023). Strategies for Preventing Bankruptcy: Adopting Insolvency Tests from the United States Perspective to Indonesia. Journal of Judicial Review, 25(1), 139–158.
- Utarid, Wa Ode Rahmi. (2023). Legal Consequence Towards An Authentic Act That Was Not Ready By Notary And Not Signed Jointly By The Parties Based On Law Of Notary. International Journal of Latin Notary, 4(1).
- Veile, Johannes W., Schmidt, Marie Christin, & Voigt, Kai Ingo. (2022). Toward a new era of cooperation: How industrial digital platforms transform business models in Industry 4.0. Journal of Business Research, 143, 387–405.
- Weidemaier, W. Mark C. (2020). Piercing the (Sovereign) Veil: The Role of Limited Liability in State-Owned Enterprises. BYU L. Rev., 46, 795.
References
Armour, John, & Sako, Mari. (2020). AI-enabled business models in legal services: from traditional law firms to next-generation law companies? Journal of Professions and Organization, 7(1), 27–46.
Baranovska, Vira, Zavertneva-Yaroshenko, Valeriia, Dryshliuk, Volodymyr, Leshanych, Myroslav, & Huk, Iryna Mariia. (2022). Legal regulation of public-private partnership relations and protection of the interests of business entities in Ukraine. Amazonia Investiga, 11(50), 99–108.
Damijan, Jože P. (2018). Corporate financial soundness and its impact on firm performance: Implications for corporate debt restructuring in Slovenia. Post-Communist Economies, 30(2), 156–192.
DePamphilis, Donald. (2019). Mergers, acquisitions, and other restructuring activities: An integrated approach to process, tools, cases, and solutions. Academic Press.
Ferreira, Jorge, Coelho, Arnaldo, & Moutinho, Luiz. (2020). Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation. Technovation, 92, 102061.
Frank, Alejandro G., Mendes, Glauco H. S., Ayala, Néstor F., & Ghezzi, Antonio. (2019). Servitization and Industry 4.0 convergence in the digital transformation of product firms: A business model innovation perspective. Technological Forecasting and Social Change, 141, 341–351.
Kotter, John P., Akhtar, Vanessa, & Gupta, Gaurav. (2021). Change: How organizations achieve hard-to-imagine results in uncertain and volatile times. John Wiley & Sons.
Mahy, Petra. (2013). Evolution of the corporate form in Indonesia: an exploration of legal innovation and stagnation. A Revised Version of This Paper Has Been Published in American Journal of Comparative Law, 61.
Ndege, Mary Wanjiku, & Ogollah, Kennedy. (2020). Effects of corporate restructuring on performance of international organizations: A case of International Finance Corporation. International Research Journal of Business and Strategic Management, 1(1).
Odetola, Oluwadamilola. (2018). Corporate Debt Restructuring and the Global Harmonisation Process: Emerging Trends in Africa. University of Kent (United Kingdom).
Paterson, Sarah. (2020). Corporate reorganization law and forces of change. Oxford University Press.
Rashid, Chnar Abdullah. (2018). Efficiency of financial ratios analysis for evaluating companies’ liquidity. International Journal of Social Sciences & Educational Studies, 4(4), 110.
Ray, Kamal Ghosh. (2022). Mergers and acquisitions: Strategy, valuation and integration. PHI Learning Pvt. Ltd.
Sultoni, Wahyudi, Suryandari, Wieke Dewi, & Susilowati, Tri. (2024). Urgency of Legal Reform for Restructuring Non-Legal Entity Companies. Devotion: Journal of Research and Community Service, 5(11), 1440–1450.
Tan, Kendry, Amboro, Yudhi Priyo, & Syarief, Elza. (2023). Strategies for Preventing Bankruptcy: Adopting Insolvency Tests from the United States Perspective to Indonesia. Journal of Judicial Review, 25(1), 139–158.
Utarid, Wa Ode Rahmi. (2023). Legal Consequence Towards An Authentic Act That Was Not Ready By Notary And Not Signed Jointly By The Parties Based On Law Of Notary. International Journal of Latin Notary, 4(1).
Veile, Johannes W., Schmidt, Marie Christin, & Voigt, Kai Ingo. (2022). Toward a new era of cooperation: How industrial digital platforms transform business models in Industry 4.0. Journal of Business Research, 143, 387–405.
Weidemaier, W. Mark C. (2020). Piercing the (Sovereign) Veil: The Role of Limited Liability in State-Owned Enterprises. BYU L. Rev., 46, 795.