4 Big Companies That Went Bankrupt in Indonesia

(iStock)

By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Due to Low Sales Product, Tupperware Files for Bankruptcy", "Be Careful Using AI, You Will be in Trouble for Citing Non-existent Jurisprudence", you may read also "5 Most Bizarre Court Cases in US History" and on this occasion we will discuss about '4 Big Companies That Went Bankrupt in Indonesia'.

Running a business does require careful calculations. If not, any company of any size could go bankrupt. In the past, there were a number of giant companies present in Indonesia. But unfortunately, the company did not last long because it went bankrupt due to a number of reasons. One of the factors that caused a company to go bankrupt was due to large debts. Apart from that, there are several other causes that cause businesses to close down.[1]

So, what are the big companies that went bankrupt in Indonesia?[2]

1. PT. Sariwangi Agricultural Estate Agency (SAEA). PT Sariwangi Agricultural Estate Agency (SAEA) is a tea company that has been established since 1973. This company, which is famous for its tea bag products, was declared bankrupt in 2018. Sariwangi was declared bankrupt because he was unable to pay the credit installments owed to Bank ICBC Indonesia. It is known that Sariwangi's total debt to ICBC Bank at that time reached US$ 20,505,166 or around IDR. 316 billion. Unilever itself only bought the Sariwangi brand, not the company, in 1989. Even though it is the holder of the Sariwangi brand, Unilever still sources supplies from SAEA.
2. Nyonya Meneer. Nyonya Meneer is a well-known herbal medicine company in Indonesia. Even though her business is already big, unfortunately, Nyonya Meneer was declared bankrupt by the Semarang District Court (PN) in 2017. There are a number of factors that cause Nyonya Meneer's business to falter, ranging from internal disputes in the successor family, a very large debt burden, to a lack of innovation in its products. On June 8 2015, the Postponement of Debt Payment Obligations (PKPU) between debtors and 35 creditors was declared valid by a judge at the Semarang Commercial Court. In this case, Hendrianto Bambang Santoso, who is one of the creditors from Sukoharjo, is suing Nyonya Meneer for bankruptcy because she did not settle the debt according to the peace proposal. Hendrianto only received IDR 118 million of the total debt of IDR 7.04 billion.
3. 7-Eleven. For young people in Jakarta, of course they are familiar with 7-Eleven or often called 'Sevel'. This convenience store was very famous in the 2010s because it served various foods and drinks, one of which was Slurpee. But unfortunately, Sevel did not last long in Indonesia. In 2017, 7-Eleven was officially declared bankrupt. The subsidiary of PT Modern Internasional Tbk (MDRN) closed all Sevel outlets in Indonesia. The main reason is because of the large operational costs that must be incurred.
4. Kodak. For those of you who love photography, you are certainly familiar with this brand. Kodak has been around since 1892 and is one of the pioneers in the photography industry. Unfortunately, Kodak's big name had to disappear because it was officially declared bankrupt in 2012. Kodak was unable to compete with competitors who offered digital products amidst very rapid technological advances. Apart from that, Kodak is also reluctant to innovate for its business in order to make a profit.

And if you have any legal issue in Indonesia territory, contact us for business inquiry, feel free in 24 hour, we will be glad to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

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References:

1. "4 Perusahaan Besar yang Bangkrut di Indonesia dan Penyebabnya", //finance.detik.com., ilham fikriansyah - detikFinance, Rabu, 18 Sep 2024, Diakses pada tanggal 24 September 2024, Link: https://finance.detik.com/berita-ekonomi-bisnis/d-7545244/4-perusahaan-besar-yang-bangkrut-di-indonesia-dan-penyebabnya

2. Ibid.