In Indonesia, restructuring plays a key role for businesses facing financial challenges, operational inefficiencies, or simply trying to adapt to a changing business landscape. Whether a company is dealing with mounting debts or looking for a more sustainable structure, Indonesian law offers several pathways to realign and recover.The main options fall into two categories:court-supervised restructuring, as set out under Law No. 37 of 2004 on Bankruptcy and Suspension of Debt Payment Obligations; andout-of-court restructuring, which is based on the general principles of civil law and contractual freedom.Each approach offers its own advantages, depending on the company’s specific situation and the dynamics with its creditors.Under the court-supervised restructuring, bankruptcy proceedings result in the liquidation of the debtor’s assets, while suspension of debt payment obligations (PKPU) offers a temporary moratorium that allows the debtor to propose a settlement plan to creditors under court supervision. Meanwhile, in an out-of-court restructuring, debtors may pursue voluntary restructuring arrangements such as novation, subrogation, or cession, based on civil law principles. These informal solutions rely on mutual agreement and are only effective if all creditors involved are cooperative, as they are not enforceable against dissenting parties.In practice, the choice between court-supervised and out-of-court restructuring depends on several factors, including the level of creditor support, the urgency of the financial situation, and the strategic goals of the company. Both mechanisms remain important tools for Indonesian companies seeking to navigate financial difficulty while preserving enterprise value.