Article 222 of Law 37 of 2004 regarding Bankruptcy and Deferment of Debt Payment Obligation (DDPO) explains two things: first, creditor cannot directly force the debtor to pay the debt and or the debtor’s assets confiscation is delayed (moratorium); second, debtor restructures the debt by submitting reconciliation proposal. This research focuses on investigating how insolvency of debtor can become the ground of requesting for DDPO. The method used in this research is normative law study using five approaches including history approach, law approach, conceptual approach, comparative approach, and case approach. The analysis uses grammatical interpretation technique (language based interpretation) and comparative interpretation (comparing data to find the best law interpretation). This research concludes that insolvency of debtor as the ground to request for Deferment of Debt Payment Obligation is unknown in the law of Deferment of Debt Payment Obligation in Indonesia. Insolvency test is inapplicable in DDPO law, so there is no balance between creditor’s and debtor’s concerns in the DDPO. Therefore, insolvency test is important to be conducted to avoid multiple interpretations in the verdict which can lead to law uncertainty.
