Cross border insolvency problems are faced by various countries, in that foreign bankruptcy judgments cannot automatically be enforced. The refusal for recognition and enforcement of foreign bankruptcy judgments in different countries has become a deadlock for the parties involved in transnational business transactions. Indonesian Bankruptcy Code does not adequately lay down provisions concerning recognition and enforcement of foreign bankruptcy judgments. The foregoing problems have come to the concerns of the United Nations. An attempt to overcome these problems has been initiated by the United Nations Commission on International Trade Law (UNCITRAL) by preparing a model law, namely UNCITRAL Model Law in Cross Border Insolvency with Guide to Enactment to be adopted by every member state. However, to date there is neither multilateral nor bilateral agreement concerning cross border insolvency, which can be adhered by all counties. Regional arrangement concerning insolvency proceedings has existed in the European Union, namely the Insolvency Convention, which aims at creating a single bankruptcy territory. It means that the bankruptcy courts of one state must have jurisdiction to conimence a principal cross border case