In bankruptcy practice, there is often a significant gap between the legal framework and the realities encountered in the field. From a legal standpoint, once a bankruptcy declaration is pronounced, the debtor loses the authority to control and manage its assets. As stipulated in Article 24 paragraph (1) of Law No. 37 of 2004 concerning Bankruptcy and Suspension of Debt Payment Obligations ("UU Kepailitan"), “By operation of law, the Debtor loses the right to control and manage its assets included in the bankruptcy estate as of the date the bankruptcy declaration is pronounced.” As a consequence, control over the bankruptcy estate is transferred to the Bankruptcy Trustee.

This authority becomes effective immediately upon the issuance of the bankruptcy declaration. This is consistent with Article 16 paragraph (1) of the UU Kepailitan, which provides that “The Bankruptcy Trustee is authorized to carry out the administration and/or liquidation of the bankruptcy estate as of the date the bankruptcy declaration is pronounced, notwithstanding that an appeal in cassation or a judicial review petition has been filed against such decision.” The scope of this authority is further reinforced under Article 69 paragraph (1), which states that “The duty of the Bankruptcy Trustee is to administer and/or liquidate the bankruptcy estate.”

In practice, however, legal control does not always equate to physical possession. Challenges often arise when the Bankruptcy Trustee begins securing assets that have legally become part of the bankruptcy estate. In many cases, such assets remain under the control of the debtor or even third parties.

This situation is most commonly encountered in relation to land and real property assets. In certain cases, the property may be occupied by residents, cultivators, or members of the community who have been utilizing the land for an extended period of time. Under such circumstances, the Bankruptcy Trustee is confronted with a far more complex set of issues.

The formal procedures for securing the bankruptcy estate generally include the following:

1. Taking Measures to Secure the Bankruptcy Estate

Article 98 of the UU Kepailitan requires the Bankruptcy Trustee to take all necessary measures to secure the bankruptcy estate, including documents, funds, securities, and other valuables by issuing an appropriate receipt.

2. Sealing of Assets

Pursuant to Article 99 paragraph (1) of the UU Kepailitan, the Bankruptcy Trustee or the Supervisory Judge may request the court to seal assets belonging to the bankruptcy estate in order to prevent their transfer, removal, or concealment.

3. Asset Inventory

Article 100 of the UU Kepailitan requires the Bankruptcy Trustee to prepare an inventory or record of the bankruptcy estate no later than two (2) days after receiving the appointment order as Bankruptcy Trustee. Such inventory may be prepared privately by the Bankruptcy Trustee with the approval of the Supervisory Judge, while members of the Temporary Creditors' Committee are entitled to attend the inventory process.

Once the legal position has been established, a persuasive approach is generally the most effective initial step. Explaining the debtor’s bankruptcy status and the resulting transfer of authority often helps reduce resistance from debtors or third parties. In many instances, parties who initially object eventually agree to cooperate after understanding that the assets concerned have legally become part of the bankruptcy estate.

Nevertheless, persuasive efforts are not always successful. In certain situations, particularly where conflicting interests exist, resistance may persist. At this stage, the Bankruptcy Trustee may need to take more formal measures, including issuing written warnings and coordinating with the Supervisory Judge. This supervisory role is expressly reflected in Article 65 of the UU Kepailitan, which states: “The Supervisory Judge is responsible for supervising the administration and liquidation of the bankruptcy estate.”

Where obstacles become more significant, including physical resistance or security concerns, the Bankruptcy Trustee may seek assistance from law enforcement authorities to ensure that the process proceeds in an orderly manner. Such measures are generally regarded as a last resort after persuasive and administrative approaches have proven unsuccessful.

Ultimately, securing a bankruptcy estate is not merely an exercise of legal authority but also a matter of risk management in the field. A Bankruptcy Trustee must strike a careful balance between firm legal enforcement and prudence in responding to the social and practical dynamics that often arise during bankruptcy proceedings.

From a practical perspective, the success of a Bankruptcy Trustee is measured not only by the ability to take control of assets, but also by the ability to maintain procedural stability, minimize conflict, and ensure that every action remains within the boundaries of the law. The Bankruptcy Trustee’s phased approach, ranging from verification and persuasion to formal enforcement measures, remains essential in ensuring that the interests of creditors are protected as effectively as possible.