The enactment of Supreme Court Regulation  No. 1 of 2026 concerning Guidelines for the Resolution of Bank Liquidation and Post-Liquidation Disputes before the Commercial Court (Peraturan Mahkamah Agung or "PERMA 1/2026") marks a significant milestone in Indonesia's banking dispute resolution framework. Effective from 13 May 2026, the regulation establishes a dedicated procedural framework for the resolution of disputes arising from banks under liquidation and post-liquidation matters.

PERMA 1/2026 provides a comprehensive procedural framework governing the Commercial Court's jurisdiction and authority to adjudicate disputes involving banks in liquidation and post-liquidation matters. By introducing specific procedural rules, the regulation aims to enhance legal certainty, improve procedural efficiency, and ensure greater consistency in the resolution of such disputes.

Key Developments

PERMA No. 1 of 2026 introduces several notable procedural developments.

Exclusive Jurisdiction of the Commercial Court

One of PERMA 1/2026's most significant contributions is the clarification of the Commercial Court's exclusive jurisdiction over disputes involving banks in liquidation and post-liquidation matters.

Banks in Liquidation

1. the realization of the bank's assets and/or recovery of receivables from debtors, including the distribution of liquidation proceeds to creditors;
2. the transfer of the assets and liabilities of a bank in liquidation to another party;
3. claims brought by the liquidation team to invalidate legal acts undertaken by the bank within one year prior to the revocation of its business license, where such acts resulted in the reduction of the bank's assets or the increase of its liabilities; and/or
4. disputes relating to deposit insurance (penjaminan simpanan).

Post-Liquidation Matters

1. the liabilities of directors, commissioners, shareholders, and/or other parties proven to have benefited from or contributed to the bank becoming subject to liquidation, where the liquidation process has exhausted all of the bank's assets but outstanding liabilities remain;
2. the settlement of residual assets and liabilities following liquidation, including ownership disputes relating to such assets and liabilities, as well as any objections or challenges raised by third parties; and/or
3. disputes relating to deposit insurance.

This clarification eliminates potential jurisdictional overlap with the District Courts and enhances legal certainty for financial sector stakeholders.

Accelerated Case Resolution

Consistent with the principle of a judiciary that is simple, speedy, and low-cost, PERMA No. 1 of 2026 requires disputes to be resolved within a maximum period of 90 days. This represents a substantial improvement over ordinary civil proceedings, which often extend over several months or even years.

The expedited timeline is particularly important given that liquidation proceedings involve asset realization and creditor distributions, where prolonged litigation may diminish the value of liquidation assets and delay payments to creditors.

Fast-Track Procedure for Lower-Value Claims

Another noteworthy innovation is the introduction of a *fast-track examination* for disputes with a claim value of up to IDR 1 billion. Under this mechanism:

1. cases are examined by a single judge, rather than a panel of judges;
2. proceedings are simplified; and
3. dispute resolution is expected to be considerably faster than ordinary commercial litigation.

Conclusion

PERMA No. 1 of 2026 represents a significant step forward in strengthening Indonesia's legal framework for resolving disputes arising from bank liquidation and post-liquidation processes. By clearly defining the Commercial Court's exclusive jurisdiction, establishing a dedicated procedural regime, and introducing expedited timelines and simplified procedures for lower-value claims, the regulation seeks to provide greater legal certainty, improve judicial efficiency, and support the timely administration of bank liquidation proceedings.

The introduction of these procedural reforms is expected to enhance the effectiveness of dispute resolution while safeguarding the interests of creditors, depositors, and other stakeholders involved in the liquidation process. As PERMA No. 1 of 2026 begins to be implemented, its practical application will be closely observed, particularly in terms of its ability to deliver more consistent, efficient, and predictable outcomes in banking liquidation disputes before the Commercial Court.