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A Letter of Authority gives someone legal permission to act on behalf of another person or organization in Indonesia. It's commonly used when company directors need to delegate specific tasks, like signing contracts or handling bank transactions, to trusted employees or representatives.

Under Indonesian commercial law, this formal document must clearly state the scope of authority being granted, the duration of the powers, and both parties' details. Many businesses use it to streamline operations, especially when dealing with government agencies or financial institutions. While similar to a power of attorney, a Letter of Authority typically grants more limited, specific powers for business purposes.

Use a Letter of Authority when you need to delegate specific business tasks in Indonesia but can't handle them personally. Common situations include authorizing staff to process import/export documentation, represent your company at government offices, or manage banking transactions while you're unavailable.

This document proves especially valuable during business expansion, when dealing with multiple locations, or managing time-sensitive regulatory compliance matters. Indonesian banks and government agencies often require Letters of Authority from company representatives handling official transactions. Having it ready prevents operational delays and ensures smooth business continuity during key personnel absences.

• Authorisation Letter For Collecting Documents: Enables representatives to retrieve official paperwork from government offices or business partners
• Authority Letter For Bank Statement: Grants permission to obtain company banking records and financial reports
• Authorization Letter Cheque: Allows designated person to handle check-related transactions
• Authorisation Letter For Bank: Provides broad authority for general banking operations
• Authorization Letter For Bank Deposit: Specifically for making deposits into company accounts

• Company Directors: Initiate and sign Letters of Authority to delegate specific powers to employees or representatives for business operations
• Department Managers: Often receive authority to handle specific administrative tasks, sign documents, or manage operations in their area
• Finance Officers: Frequently authorized to conduct banking transactions, access financial records, or manage company accounts
• Administrative Staff: May be empowered to collect official documents, handle routine governmental procedures, or process paperwork
• Legal Teams: Draft and review the letters to ensure compliance with Indonesian corporate law and internal policies
• Banks and Government Agencies: Accept and verify these letters when processing transactions or official requests

• Gather Basic Details: Collect full legal names, positions, and ID numbers of both the authority granter and recipient
• Define Scope: List specific powers being delegated, time period, and any limitations clearly
• Company Information: Include complete business details, registration numbers, and official address
• Documentation: Prepare copies of relevant business licenses and identity documents
• Format Check: Use our platform to generate a legally compliant template that meets Indonesian requirements
• Validation: Ensure company stamps and authorized signatures are properly placed
• Record Keeping: Make copies for all parties and maintain in company records

• Header Information: Complete legal names and addresses of both parties, date, and reference number
• Authority Scope: Clear description of specific powers being granted and any limitations
• Duration Clause: Explicit start and end dates of the authorized powers
• Legal Basis: Reference to relevant Indonesian corporate laws and company statutes
• Responsibilities: Detailed outline of authorized actions and accountability measures
• Revocation Terms: Conditions under which the authority can be withdrawn
• Authentication: Company stamp, authorized signatures, and witness details where required
• Governing Law: Statement confirming Indonesian law jurisdiction

A Letter of Authority is often confused with a Certificate of Authority, but they serve distinct purposes in Indonesian business practice. While both documents relate to delegating powers, their scope and application differ significantly.

• Legal Status: Letters of Authority are typically internal documents for specific tasks or transactions, while Certificates of Authority are formal documents often required by government agencies or regulatory bodies
• Duration: Letters of Authority usually have a defined time period or specific transaction scope, whereas Certificates of Authority tend to be ongoing until formally revoked
• Verification Process: Letters of Authority require simple company authentication, but Certificates of Authority often need notarization or official government validation
• Usage Context: Letters of Authority work well for routine business operations, while Certificates of Authority are necessary for major corporate actions or regulatory compliance