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A Letter Of Intent To Purchase Scrap Metal is commonly used in Indonesia's industrial and recycling sectors as a preliminary step before entering into a formal purchase agreement. This document type is particularly relevant when parties need to establish their initial understanding while allowing for due diligence and detailed negotiations. It typically includes proposed terms for material specifications, quantity, pricing mechanisms, and delivery arrangements, while ensuring compliance with Indonesian regulations, particularly Law No. 7 of 2014 on Trade and environmental protection laws. The document is essential for businesses engaged in metal recycling, manufacturing, and trading activities within Indonesia, serving as a framework for subsequent negotiations while addressing key regulatory requirements for scrap metal trading. It's particularly useful when dealing with significant quantities of material or when the transaction requires specific environmental permits and compliance measures.

1. Letterhead and Date: Company letterhead of the intending purchaser and current date

2. Recipient Details: Full name and address of the scrap metal supplier/seller

3. Subject Line: Clear identification as a Letter of Intent for Scrap Metal Purchase

4. Introduction: Identification of the parties and their business registration details

5. Intent Statement: Clear statement of intention to purchase scrap metal and general purpose

6. Material Description: Specific types and categories of scrap metal intended for purchase

7. Quantity and Price Parameters: Proposed quantity ranges and pricing mechanism or ranges

8. Proposed Timeline: Expected timeframe for negotiation, due diligence, and transaction completion

9. Basic Terms: Key commercial terms including delivery, payment terms, and quality requirements

10. Regulatory Compliance: Reference to relevant Indonesian regulations and required permits

11. Closing and Signatures: Non-binding nature statement, contact details, and signature blocks