The Business Property Developer Bankcrupty and Human Rights Fails

Abstract

Economic actors wield unprecedented global influence, profoundly shaping the socio-economic landscapes of the communities in which they operate. Recent macroeconomic shifts have triggered a surge in corporate insolvencies, particularly among property developers. Developer bankruptcy constitutes one of the most critical yet underestimated financial risks for real estate buyers, routinely culminating in severe consumer asset losses. Under international law in the Universal Declaration of Human Rights (UDHR) housing is recognized as a fundamental economic rights. This framework dictates that adequate housing must guarantee secure tenure, shielding individuals from the threat of eviction or sudden asset dispossession. This study examines the economic- legal implications of property developer insolvencies on consumer rights, utilizing a case study of PT Bali Seminyak Sejahtera a condotel and hotel developer in Bali, that faced debt restructuring and subsequent bankruptcy proceeding. The objective is to formulate strategies for strengthening consumer legal protection while establishing a balanced equitable framework that reconciles developer commercial interests with the rights of good-faith buyers. The paper utilizes multi-tiered methodology incorporating general scientific methods (systemic, dialectical, and sociological approaches) alongside specific legal research methods (normative-logical, comparative-legal, technical-legal, and legal statistics). The primary data sources comprise domestic and international business law literature. The study concludes that while listed property developers actively adopt economic rights policies, they fundamentally fail to operationalize them. A critical governance gap persists: there is an absolute absence of board-level accountability for human rights breaches when corporate insolvency strips consumers of their secure tenure and financial security.