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Deferred Payment Contract for Indonesia

Deferred Payment Contract Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes and regulates an arrangement where one party (the Payor) commits to making payments to another party (the Payee) according to a specified schedule rather than immediate payment. The document incorporates essential elements required under Indonesian Civil Code (KUHPerdata) and commercial regulations, including detailed payment terms, security arrangements, default provisions, and remedies. It ensures compliance with Bank Indonesia regulations regarding payment obligations and includes necessary provisions for enforcement under Indonesian jurisdiction.

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Deferred Payment Contract

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What is a Deferred Payment Contract?

The Deferred Payment Contract serves as a crucial legal instrument in Indonesian commercial transactions where immediate payment is not feasible or desired. This document type is commonly used in various business scenarios, including large equipment purchases, property transactions, or supplier arrangements where payment is spread over time. The contract must comply with Indonesian Civil Code (KUHPerdata) requirements, Bank Indonesia regulations, and relevant commercial laws. It typically includes detailed payment schedules, interest calculations, security arrangements, and default provisions. The document is particularly important in the Indonesian business context where structured payment arrangements need to be formally documented to ensure enforceability and provide adequate protection for all parties involved.

What sections should be included in a Deferred Payment Contract?

1. Parties: Identification and details of the contracting parties

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Principal Amount and Payment Terms: Details of the amount owed and agreed payment structure

5. Payment Schedule: Specific dates, amounts, and methods of scheduled payments

6. Interest Rate and Calculations: Applicable interest rates and calculation methodology

7. Security and Collateral: Details of any security or collateral provided for the deferred payment

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

9. Events of Default: Circumstances constituting default and consequences

10. Remedies: Rights and actions available to parties in case of default

11. Notices: Communication procedures between parties

12. Governing Law and Jurisdiction: Confirmation of Indonesian law application and dispute resolution forum

What sections are optional to include in a Deferred Payment Contract?

1. Guarantees: Third-party guarantees for the payment obligations, if applicable

2. Prepayment Terms: Conditions and calculations for early payment scenarios

3. Currency Provisions: Required for contracts involving foreign currency payments

4. Insurance Requirements: If specific insurance coverage is required for secured assets

5. Assignment and Transfer: Rights and restrictions regarding transfer of contract obligations

6. Force Majeure: Provisions for unforeseeable circumstances affecting payment ability

7. Tax Provisions: Allocation of tax responsibilities and withholding requirements

What schedules should be included in a Deferred Payment Contract?

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

2. Interest Calculation Methods: Detailed formulas and examples of interest calculations

3. Security Documents: Details of collateral, guarantees, or other security arrangements

4. Form of Payment Notice: Template for payment notifications and confirmations

5. Asset Schedule: List and description of any assets serving as security

6. Contact Details: Comprehensive contact information for all relevant parties

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

Manufacturing

Real Estate

Construction

Retail

Wholesale Trade

Agriculture

Mining

Industrial Equipment

Technology

Import/Export

Infrastructure Development

Consumer Goods

Relevant Teams

Legal

Finance

Treasury

Credit Control

Risk Management

Procurement

Commercial

Accounts Receivable

Corporate Secretariat

Compliance

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Credit Controller

Legal Counsel

Commercial Director

Procurement Manager

Risk Manager

Contract Administrator

Financial Controller

Accounts Receivable Manager

Business Development Manager

Corporate Secretary

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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