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Business Authorization Letter for Indonesia

Business Authorization Letter Template for Indonesia

A Business Authorization Letter under Indonesian law is a formal document that grants specific powers and authority to a designated representative to act on behalf of a company or business entity. This document, governed by Indonesian Civil Code and relevant business regulations, establishes the scope, limitations, and duration of the authorized powers. It serves as a legal instrument that enables business operations through delegated authority, while maintaining compliance with Indonesian corporate governance requirements and commercial regulations. The document must typically be notarized to ensure its legal validity within the Indonesian jurisdiction.

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What is a Business Authorization Letter?

The Business Authorization Letter is a crucial document in Indonesian business operations, used when a company needs to delegate specific powers to representatives for conducting business activities. It is particularly relevant when companies need to authorize employees or external agents to handle specific transactions, sign documents, represent the company in meetings, or manage particular business operations. The document must comply with Indonesian Civil Code requirements and often requires notarization for legal validity. Common situations requiring this document include opening bank accounts, signing contracts, handling government applications, or representing the company in business negotiations. The authorization can be limited in time and scope, and should clearly specify the extent of powers granted to protect both the authorizing company and the authorized representative.

What sections should be included in a Business Authorization Letter?

1. Letter Header: Complete business details of the authorizing party, including company name, registration number, and address

2. Date and Reference Number: Official date of the authorization and any internal reference numbers

3. Recipient Details: Complete information about the authorized representative, including full name, ID number, and position

4. Subject Line: Clear indication that this is a Business Authorization Letter

5. Authorization Statement: Clear and specific statement of the powers being granted

6. Scope of Authority: Detailed description of what actions the representative is authorized to take

7. Duration of Authority: Specific timeframe for which the authorization is valid

8. Signature Block: Space for authorized signatory's name, title, and signature, with company stamp

What sections are optional to include in a Business Authorization Letter?

1. Consideration Section: Background information explaining why the authorization is being granted, used when context is important

2. Limitations of Authority: Specific restrictions or conditions on the authorized powers, included when there are specific activities the representative cannot perform

3. Reporting Requirements: Obligations of the authorized person to report their activities, included when ongoing oversight is required

4. Revocation Clause: Specific conditions under which the authorization can be revoked, included for high-risk authorizations

5. Witness Section: Space for witness signatures, used when additional verification is desired or required

What schedules should be included in a Business Authorization Letter?

1. List of Authorized Activities: Detailed enumeration of specific tasks and transactions the representative is authorized to perform

2. Required Documentation: List of documents the representative must carry to prove their authority

3. Geographic Scope: List of locations or jurisdictions where the authorization is valid

4. Contact Information: Complete contact details for all relevant parties and emergency contacts

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Authorization Form

Cost

Free to use
Relevant legal definitions




















Clauses




















Relevant Industries

Manufacturing

Trading and Distribution

Financial Services

Construction

Real Estate

Retail

Import/Export

Technology

Professional Services

Healthcare

Education

Hospitality

Transportation and Logistics

Mining and Resources

Agriculture

Relevant Teams

Legal

Compliance

Corporate Secretariat

Human Resources

Operations

Administration

Finance

Business Development

Sales

Procurement

Management

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Corporate Secretary

Legal Counsel

Compliance Officer

Business Development Manager

Operations Manager

Human Resources Director

Finance Director

Country Manager

Regional Director

Branch Manager

Department Head

Project Manager

Sales Manager

Procurement Manager

Administrative Manager

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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