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Deferment Agreement for Indonesia

Deferment Agreement Template for Indonesia

A Deferment Agreement under Indonesian law is a formal legal document that modifies existing payment obligations by establishing new payment terms and schedules. The agreement operates within Indonesia's civil law system and must comply with the Indonesian Civil Code (KUHPerdata) and relevant financial regulations, including OJK guidelines. It details the terms of payment postponement, including the deferred amount, new payment schedule, any additional interest or charges, and conditions that must be met during the deferment period. The document preserves the creditor's rights while providing temporary relief to the debtor, maintaining the balance between debt collection and business continuity under Indonesian law.

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What is a Deferment Agreement?

The Deferment Agreement is a crucial instrument in Indonesian business and financial practice, typically employed when a debtor requires temporary relief from existing payment obligations while maintaining the fundamental debtor-creditor relationship. This document type becomes particularly relevant during periods of financial stress, business restructuring, or when external factors affect a debtor's payment capability. The agreement must carefully balance the interests of both parties while ensuring compliance with Indonesian law, particularly the Civil Code (KUHPerdata) and financial services regulations. A well-drafted Deferment Agreement should clearly outline the original debt, specify the terms of deferment, establish new payment schedules, and address any additional conditions or securities required. It's essential for maintaining business relationships and avoiding more severe measures like default proceedings or bankruptcy, while providing a structured approach to debt management within Indonesia's legal framework.

What sections should be included in a Deferment Agreement?

1. Parties: Identification of the creditor and debtor, including their full legal names, addresses, and authorized representatives

2. Background: Recitals explaining the original debt obligation, reason for deferment, and parties' intention to modify payment terms

3. Definitions: Definitions of key terms used in the agreement, including reference to original agreement terms

4. Original Debt Acknowledgment: Confirmation of the existing debt amount and reference to the original agreement

5. Deferment Terms: Specific terms of the deferment including new payment dates and any conditions

6. Payment Schedule: Details of the revised payment schedule including amounts and due dates

7. Interest and Charges: Specification of any interest or additional charges applicable during the deferment period

8. Representations and Warranties: Statements of fact and assurances from both parties

9. Default and Remedies: Consequences of failing to meet the deferred payment obligations

10. Continuing Obligations: Confirmation of which original agreement terms remain in force

11. Governing Law: Specification of Indonesian law as governing law

12. Dispute Resolution: Procedures for resolving any disputes arising from the agreement

13. Notices: How formal communications between parties should be made

14. Execution: Signature blocks and execution requirements

What sections are optional to include in a Deferment Agreement?

1. Additional Security: Required when new security or collateral is being provided as part of the deferment arrangement

2. Guarantor Provisions: Needed when a third party is guaranteeing the deferred payments

3. Special Conditions: Used when specific conditions must be met before or during the deferment period

4. Financial Covenants: Include when ongoing financial requirements are imposed on the debtor

5. Regulatory Compliance: Required when the deferment needs specific regulatory approvals or compliance

6. Tax Provisions: Include when there are specific tax implications that need to be addressed

7. Force Majeure: Optional section addressing circumstances beyond parties' control affecting payment ability

What schedules should be included in a Deferment Agreement?

1. Schedule 1 - Original Agreement: Copy of the original agreement being deferred

2. Schedule 2 - Detailed Payment Schedule: Comprehensive breakdown of all deferred payments including dates and amounts

3. Schedule 3 - Current Debt Statement: Statement showing current outstanding debt amount and calculation

4. Schedule 4 - Security Documents: Copies of any security documents if additional security is provided

5. Schedule 5 - Required Approvals: Copies of any required regulatory or corporate approvals

6. Appendix A - Calculation of Interest: Detailed explanation of interest calculations during deferment period

7. Appendix B - Forms of Notice: Standard forms for various notices required under the agreement

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

Payment Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions





































Clauses

































Relevant Industries

Banking & Financial Services

Real Estate & Property

Manufacturing

Retail & Consumer Goods

Infrastructure & Construction

Energy & Resources

Technology & Telecommunications

Healthcare

Agriculture

Transportation & Logistics

Professional Services

Hospitality & Tourism

Relevant Teams

Legal

Finance

Treasury

Credit Control

Risk Management

Compliance

Corporate Secretariat

Debt Recovery

Commercial

Business Development

Senior Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Credit Manager

Risk Manager

Treasury Manager

Financial Controller

Debt Recovery Officer

Compliance Officer

Account Manager

Restructuring Manager

Company Secretary

Managing Director

Commercial Director

Business Development 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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