Debtors' Prison Proving Difficult to Fill

The court has rejected an application by IBRA to detain seven scions and associates of the Dharmala Group. The reason: IBRA was unable to prove the existence of the alleged debt.

July 17, 2001

The government's plan to incarcerate indebted tycoons until such time as they pay their debts appears to have been stymied. This is despite the fact that the Supreme Court in 2000 reactivated the process of detaining debtors until their debts had been settled (known in Dutch-based Indonesian law as gijzeling), a legal instrument which had been in abeyance since 1974. Under this process, a debtor may be detained for up to six months. If after this...

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