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An Installment Promissory Note is a crucial financial instrument in Indonesian business and personal transactions where structured repayment of debt is required. This document type is governed by the Indonesian Civil Code (KUH Perdata) and relevant financial regulations, making it enforceable in Indonesian courts. It's commonly used when parties need to formalize lending arrangements with regular payment schedules, whether for business expansion, asset purchases, or personal loans. The note includes specific details about the debt amount, payment schedule, interest rates, and consequences of default. It can be enhanced with security interests or guarantees for additional protection. The document's format and content must comply with Indonesian legal requirements to ensure enforceability, particularly regarding witness requirements and proper execution.

1. Promissory Declaration: Clear statement of promise to pay, including the total principal amount in both numbers and words

2. Parties: Identification of the maker (promisor/debtor) and payee (promisee/creditor) with complete legal names and addresses

3. Payment Terms: Detailed specification of installment amounts, payment frequency, and total number of installments

4. Interest Rate: Clear statement of the applicable interest rate, calculation method, and payment schedule

5. Payment Due Dates: Specific dates or day of month when installments are due

6. Place of Payment: Specification of where/how payments should be made

7. Default Provisions: Consequences of missed payments and acceleration clause

8. Governing Law: Statement that Indonesian law governs the note

9. Execution: Date, signature block, and witness requirements