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A Customer Letter of Intent is a crucial preliminary document in Indonesian business practice, particularly when initiating significant commercial relationships. It serves as a formal expression of interest from a potential customer to a supplier or service provider, setting the stage for more detailed negotiations. While not legally binding in most aspects, it carries significant business weight in the Indonesian context, where formal documentation of intent is an important part of business culture. The document typically outlines proposed commercial terms, timelines, and the scope of potential cooperation, while clearly stating its non-binding nature. Used primarily in business-to-business contexts, it helps parties establish clear communication and demonstrate serious intent while maintaining flexibility for final contract negotiations. Under Indonesian law, particularly considering the Civil Code (KUHPer) and commercial regulations, this document should be carefully drafted to avoid unintended binding obligations while still serving its purpose as a meaningful step toward a formal agreement.

1. Letter Header and Date: Complete business contact information of both parties and date of the letter

2. Subject Line: Clear indication that this is a Letter of Intent and brief description of the proposed transaction

3. Opening Statement: Formal introduction and identification of the parties

4. Expression of Intent: Clear statement of interest and general purpose of the proposed transaction

5. Scope of Interest: Description of products, services, or business relationship being considered

6. Key Commercial Terms: Basic outline of proposed commercial terms including quantity, pricing, or service levels

7. Timeline: Proposed timeline for negotiations and implementation

8. Non-Binding Statement: Clear statement that this is a non-binding expression of intent

9. Closing and Signatures: Formal closing, date, and signature blocks for authorized representatives