A proposal appeared for the government to issue a moratorium policy of the
submission of Bankruptcy and Postponement of Debt Settlement Obligations with the
reason to save the business sector which is affected by COVID-19. This concept
intends to stop the implementation of Law No. 37 of 2004 for a certain period of time.
The purpose of writing this thesis is to find out whether this moratorium concept will
protect the interests of creditors and debtors. This research uses normative research
that focuses on legislation and/or literature or document studies which is mostly done
on secondary data. The result shows that the moratorium concept will provide legal
protection to debtors by giving opportunity to improve the condition of their company
and forums in district courts to creditors. However, this concept will very likely be
used by debtors to avoid paying their debts and creditors will not get certainty of
payment.