Abstract

Disputes between developers and creditors in the property sector often culminate in petitions for bankruptcy and Suspension of Debt Payment Obligations (PKPU), even though in practice, many are rooted in civil breach of contract (default) disputes. This condition creates legal uncertainty and has the potential to disrupt the business continuity of developers. Consequently, the Supreme Court issued Supreme Court Circular Letter (SEMA) Number 3 of 2023 as a guideline for judges in handling bankruptcy and PKPU cases involving developers. This study aims to analyze the legal implications of SEMA No. 3 of 2023 for developers facing bankruptcy petitions and to analyze the legal protection provided to creditors and consumers against such developers based on SEMA No. 3 of 2023. The results indicate that SEMA No. 3 of 2023 tightens the application of bankruptcy and PKPU against developers by emphasizing judicial prudence in assessing the elements of due and collectible debts. Simultaneously, it maintains legal protection for creditors who can clearly prove the existence of debt, thereby creating a balance between legal certainty and justice for all parties involved.