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Debt Agreement Letter for Indonesia

Debt Agreement Letter Template for Indonesia

A legally binding document governed by Indonesian law that formalizes a lending arrangement between two or more parties. This document outlines the terms and conditions of a debt obligation, including the principal amount, interest rate, repayment schedule, and consequences of default. Compliant with Indonesian Civil Code (KUHPerdata) requirements, it serves as official documentation of the debt relationship and can be used for both personal and business lending arrangements. The document includes necessary provisions for enforceability under Indonesian law, such as proper party identification, witness signatures, and stamp duty requirements.

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What is a Debt Agreement Letter?

The Debt Agreement Letter is a crucial document used in Indonesian lending practices to formalize monetary obligations between parties. It serves as a legally binding record of debt arrangements, whether for personal loans, business financing, or other lending purposes. This document must comply with Indonesian Civil Code requirements and related financial regulations, including proper execution procedures and stamp duty obligations. The letter typically includes essential details such as loan amount, interest rates, payment terms, and default provisions, while also accommodating optional elements like collateral arrangements or guarantor commitments. Used extensively in both private and commercial contexts, the Debt Agreement Letter provides a clear framework for managing debt obligations while ensuring legal enforceability under Indonesian jurisdiction.

What sections should be included in a Debt Agreement Letter?

1. Date and Place: The date and location where the letter is executed

2. Parties' Information: Complete names, addresses, and identification details of both the lender and borrower

3. Loan Details: Specific amount being borrowed, currency, and purpose of the loan

4. Repayment Terms: Payment schedule, interest rate, and method of payment

5. Default Provisions: Consequences of failing to make payments as agreed

6. Acknowledgment: Borrower's acknowledgment of the debt and agreement to the terms

7. Signatures: Space for signatures of both parties and witnesses

What sections are optional to include in a Debt Agreement Letter?

1. Security/Collateral Details: Include when the loan is secured by specific assets or collateral

2. Guarantor Information: Required when a third party is guaranteeing the loan

3. Early Repayment Terms: Include if early repayment is allowed and any associated conditions

4. Force Majeure Clause: Include when parties want to address unforeseen circumstances affecting repayment

5. Dispute Resolution: Include when parties want to specify specific dispute resolution mechanisms

6. Insurance Requirements: Include when insurance is required for secured assets or the borrower

What schedules should be included in a Debt Agreement Letter?

1. Payment Schedule: Detailed breakdown of payment dates, amounts, and interest calculations

2. Collateral List: Detailed description of any assets provided as security for the loan

3. Supporting Documents: Copies of relevant identification documents, licenses, or certificates

4. Guarantor Documents: If applicable, documents related to guarantor commitments and identification

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

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions

























Clauses






















Relevant Industries

Banking and Financial Services

Real Estate

Small and Medium Enterprises

Agriculture

Manufacturing

Retail

Technology

Construction

Education

Healthcare

Professional Services

Mining and Resources

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit Administration

Corporate Secretariat

Business Development

Operations

Documentation

Relevant Roles

Chief Financial Officer

Finance Manager

Legal Counsel

Corporate Secretary

Credit Manager

Loan Officer

Risk Manager

Compliance Officer

Treasury Manager

Financial Controller

Business Development Manager

Account Manager

Legal Administrator

Financial Analyst

Credit Analyst

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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