Legal Basis:
1. Law Number 13 of 2003 on Manpower:
Article 150 of this law states that the provisions regarding termination of employment (PHK) also apply to bankrupt companies. This is further reinforced by various legal sources, such as Halo JPN.
2. Law Number 37 of 2004 on Bankruptcy and Suspension of Debt Payment Obligations (Bankruptcy Law):
This law regulates the bankruptcy process and the rights of creditors, including employees’ rights to severance pay.
3. Government Regulation Number 35 of 2021 concerning Fixed-Term Employment Agreements, Outsourcing, Working Hours and Rest Periods, and Termination of Employment:
Article 81 point 45 of the Job Creation Law (also known as the Omnibus Law) and Article 36 letter f of Government Regulation 35/2021 state that bankruptcy is a valid reason for termination, and employees terminated under such conditions are entitled to severance pay, long service pay, and compensation for rights.
4. Constitutional Court Decision Number 67/PUU-XI/2013:
This decision emphasizes that workers’ rights to wages and severance must take precedence in the bankruptcy process.

CONCLUSION:
1. Employees who are terminated due to company bankruptcy are entitled to severance pay, long service awards, and compensation for rights.
2. These employee entitlements must be paid by the bankruptcy trustee (curator), who manages the bankrupt company’s assets.
3. The payment of severance and other entitlements takes priority in the bankruptcy process, meaning employees are prioritized over other creditors.
4. However, the severance amount may differ from standard termination cases—specifically, it can be 0.5 times or half the normal severance rate. This is stipulated in Article 40 paragraph (2) of the Manpower Law.
5. Employees are advised to promptly contact the bankruptcy trustee to inquire about their rights and the disbursement process.