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The Family Member Promissory Note is a specialized legal instrument designed for use in Indonesia when family members enter into loan arrangements that require formal documentation. This document becomes essential when family members wish to establish clear, legally enforceable terms for financial transactions while maintaining the special considerations inherent in family relationships. It is particularly relevant in situations where substantial sums are involved, where there's a need to avoid future misunderstandings, or where the arrangement may have implications for inheritance or family asset distribution. The document must comply with Indonesian Civil Code requirements while potentially incorporating relevant aspects of Islamic law, family law, and local customs. It typically includes detailed loan terms, repayment schedules, and any special provisions reflecting the family relationship, while maintaining sufficient formality to be legally enforceable.

1. Parties: Identifies the lender and borrower, including their full legal names, addresses, and family relationship

2. Background: Explains the context of the family loan and acknowledges the family relationship between the parties

3. Definitions: Defines key terms used in the document for clarity and legal certainty

4. Loan Amount: Specifies the principal amount being borrowed in both numbers and words

5. Interest Rate: States the agreed interest rate (if any) and calculation method

6. Repayment Terms: Details the repayment schedule, including payment amounts, frequency, and due dates

7. Method of Payment: Specifies acceptable payment methods and payment instructions

8. Late Payment: Outlines consequences of late payments and any grace periods

9. Prepayment: States the borrower's right to prepay the loan and any conditions

10. Representations: Basic representations about capacity to enter into the agreement

11. Governing Law: Specifies Indonesian law as the governing law

12. Signatures: Space for dated signatures of both parties