Cases of Suspension of Debt Payment Obligations (PKPU) saw a significant decline in the first quarter of 2025. Based on data from the Case Tracking Information System (SIPP) of five Commercial Courts across Indonesia, PKPU filings during this period dropped to 132 cases (↓ 20% year-on-year).
In response, CRIF Indonesia argues that the decline in PKPU and bankruptcy cases indicates a generally healthy economic condition, even though some economic contraction is occurring. Indonesia’s economic growth in Q1 2025 stood at 4.87% (yoy). Although this is lower than the 5.11% growth recorded in the same period last year, it is still considered stable and resilient amid global uncertainty. Compared to developed countries like the United States and the European Union, which only grew around 1–2%, Indonesia’s economic growth appears more favorable.
With the decline in PKPU cases at the start of 2025, the government hopes businesses will remain optimistic in improving the economy throughout the year. Authorities are expected to continue promoting ease and acceleration in doing business. At the same time, business players are encouraged to keep innovating and staying creative in navigating the current uncertain global economic landscape.
In 2025, businesses are also urged to be more aggressive in exploring new export markets. The Indonesian Chamber of Commerce and Industry (KADIN) has reported that investor confidence remains high. Realized investment in Q1 2025 reached IDR 465.2 trillion, an increase of 2.7% compared to Q4 2024, and a significant 15.9% year-on-year rise. This achievement accounts for 24.4% of the total 2025 investment target of IDR 1,905.6 trillion.
In Q1 2025, the construction sector recorded the highest number of PKPU cases, accounting for 13.4% of total filings. This high figure is influenced by several factors, including heavy reliance on both government and private projects, which are often delayed due to budget disbursement issues or even contract cancellations. These disruptions directly impact company cash flow. Moreover, construction companies tend to aggressively use debt-based financing to support working capital and expansion. The situation is further worsened by fluctuating prices of building materials such as cement and steel, and delayed payments from clients, creating additional financial strain.
The agriculture, forestry, and fisheries sector follows, contributing 11.6% of total cases. This sector is highly vulnerable to external factors—especially extreme weather and climate change—which can lead to crop failures or reduced production. Additionally, high dependence on export markets makes businesses in this sector sensitive to global commodity price fluctuations and distribution hurdles. Common challenges also include limited access to long-term financing and rising production costs—such as fertilizers and animal feed—that often do not match the volatile or low selling prices of their products.
Meanwhile, the manufacturing sector, contributing 8.9% of total PKPU filings, is also under significant pressure. Overcapacity in several subsectors has led to low efficiency, while market demand has yet to catch up. Intense price competition—especially from low-cost imported goods—is squeezing profit margins. Moreover, delayed payments from buyers have disrupted cash flow. On the other hand, many manufacturers had previously taken on large loans for expansion or facility modernization, which has become a burden when revenue falls short of expectations.
Overall, these three sectors share common characteristics: reliance on steady cash flow, high exposure to external risks, and debt-dependent financial structures. These factors make them more vulnerable to financial stress and have contributed to the surge in PKPU filings in the first quarter of 2025.
Building on the previous conclusion, the manufacturing sector showed significant variation in the types of industries involved in PKPU cases during the first quarter of 2025.
The subsector with the most PKPU filings was textiles, contributing 60% of the total within manufacturing. According to CRIF, this high percentage is the result of longstanding structural and external pressures. Indonesia’s textile industry has been facing intense competition from low-cost imported goods, especially from China and other Asian countries. Moreover, the global demand for textile exports has slowed down post-pandemic, causing a drop in sales volumes. Industry players also face high production costs, including energy, imported raw materials, and labor. Many textile companies are burdened by debts from earlier expansions, which have not been matched by increased revenues, leading to liquidity challenges.
The tableware manufacturing subsector—specifically silverware, coated metals, and stainless steel—accounted for 20% of total cases in the manufacturing sector. The main issues in this subsector include a limited domestic market and pressures from high global metal price fluctuations. As these products fall under non-essential consumer goods, demand easily drops when consumer purchasing power weakens. Companies in this segment also operate on narrow profit margins and carry high fixed costs, making them more vulnerable when sales decline.
Meanwhile, the chemical and chemical products subsector, as well as other non-metallic mineral products, each contributed 10% of cases. In the chemical industry, the primary challenge is the dependency on imported raw materials and the volatility of global oil prices, which heavily influence cost structures. Many companies in this subsector are also exposed to slowing export markets. As for non-metallic mineral products—such as ceramics, cement, and other building materials—the slowdown in the property and infrastructure sectors has caused a significant drop in demand. As a result, these companies have struggled to meet their maturing financial obligations.
Overall, the most heavily impacted manufacturing subsectors are those with high export orientation, substantial debt burdens from prior expansions, and strong sensitivity to fluctuations in raw material and energy prices. This combination of factors has positioned the manufacturing sector as one of the largest contributors to PKPU filings in early 2025.
Several PKPU Applications Received by Commercial Courts
Based on the distribution of cases across five court jurisdictions, the Central Jakarta SIPP recorded the highest number of PKPU filings, accounting for 73% of total cases in Q1 2025. This is not only due to the broader and more extensive area it covers but also because of the high concentration of businesses and the intense market competition in the region—factors that significantly impact the financial health of companies operating there.
Based on the data we analyzed, 78.03% of debt-related cases in Q1 2025 were Suspension of Debt Payment Obligation (PKPU) filings, while the remaining 21.97% were bankruptcy cases.
The significant proportion of PKPU cases reflects the financial challenges faced during the period. This situation may be driven by various factors such as rising production costs, weakening market demand, supply chain disruptions, or high debt burdens. According to CRIF, many companies prefer the PKPU mechanism over immediate bankruptcy proceedings because it offers a chance to restructure their finances and continue business operations. Meanwhile, the relatively high number of bankruptcy filings initiated by third parties indicates an ongoing lack of trust among businesses regarding their partners’ ability to pay, further worsening conditions across several sectors.
Conclusion and Solutions
In the first quarter of 2025, PKPU case filings declined by 20% compared to the same period last year, totaling 132 cases. While this suggests that Indonesia’s economic conditions remain relatively stable amid global uncertainty, the data also shows that financial pressures persist—especially in sectors such as construction, agriculture, and manufacturing. The manufacturing sector contributed 8.9% of total cases, with the textile subsector being the most affected due to rising production costs, competition from imported products, and weakening export demand. A majority of cases (78.03%) were PKPU filings, highlighting business owners’ preference for deferring obligations rather than entering immediate bankruptcy.
To address these conditions, a comprehensive solution is needed. On the policy side, the government must accelerate business climate reforms, such as expanding access to financing for small and medium-sized enterprises (SMEs), and improving logistics and supply chain efficiency. For the manufacturing sector, potential solutions include promoting digital transformation and automation to enhance production efficiency, as well as diversifying export markets to reduce reliance on specific regions. Industry players must also manage their financial structures more cautiously to avoid overreliance on debt. In the short term, facilitating debt restructuring programs and providing incentives for industrial revitalization are crucial to prevent a rise in PKPU cases in the following quarters.
