PT Kertas Leces is a State-Owned Enterprise that has been insolvent. With the bankruptcy decree of PT Kertas Leces, the debtor will lose the right to manage and control their assets. The curator specified in the bankruptcy decision will immediately be in charge of the management and/or settlement of bankrupt assets. Insolvency is the sale of insolvent property that has been collected and registered as insolvent property by the curator, which aims to obtain cash to pay the insolvent debts that have been matched and determined in the debt verification meeting, as well as paying bankruptcy fees and curatorial services rewards. Polemic in the case of PT Kertas Leces is a company in the form of state-owned enterprises, where the capital is divided into shares that are all or at least 51% (fifty-one percent) owned by the Republic of Indonesia. The process of bankruptcy and the eradication of insolvent assets in state-owned enterprises in the form of Persero, in the condition of applying for bankruptcy, the mechanism of eradication of insolvent assets there is no difference referencing the Bankruptcy Law and PKPU, it can’t be separated from the existence of two or more creditors and the existence of debts that have matured.