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Past Due Invoice Letter for Indonesia

Past Due Invoice Letter Template for Indonesia

A Past Due Invoice Letter is a formal business document used in Indonesia to request payment for overdue invoices, governed by Indonesian commercial law including the Civil Code (Kitab Undang-undang Hukum Perdata) and Trade Law No. 7 of 2014. The letter serves as an official payment reminder and potential precursor to legal action, incorporating Indonesian legal requirements for debt collection and payment terms. It typically includes detailed invoice information, payment history, clear payment instructions, and may reference late payment penalties as permitted under Indonesian law.

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What is a Past Due Invoice Letter?

The Past Due Invoice Letter is a crucial business document used when payment for goods or services remains unpaid beyond the agreed-upon terms in Indonesia. This document is typically issued after the payment deadline has passed and previous informal reminders have been unsuccessful. It serves multiple purposes: formally documenting the payment request, maintaining a clear record for potential legal proceedings, and demonstrating professional attempts at debt collection before escalating to legal action. The letter must comply with Indonesian business practices and legal requirements, including the Civil Code and Trade Law, particularly regarding payment terms and debt collection practices. It's an essential tool in the accounts receivable process, often used as part of a structured collection procedure that may ultimately lead to legal enforcement if payment is not received.

What sections should be included in a Past Due Invoice Letter?

1. Letter Header: Company letterhead, date, recipient's complete address and contact details

2. Reference Line: Subject line clearly indicating this is regarding past due payment, including invoice number(s)

3. Opening Statement: Professional greeting and immediate identification of the purpose of the letter

4. Invoice Details: Specific details of the outstanding invoice(s), including invoice number(s), original due date(s), and amount(s) owed

5. Payment History: Brief reference to any previous payment reminders or communications

6. Payment Request: Clear statement of payment expectation and deadline

7. Payment Instructions: Detailed information on how to make the payment, including bank account details or other payment methods

8. Closing Statement: Professional closing with clear next steps and contact information

What sections are optional to include in a Past Due Invoice Letter?

1. Late Payment Interest: Include when applying interest charges to the overdue amount as per agreement or law

2. Payment Plan Option: Include when willing to offer installment payments or payment plan alternatives

3. Legal Action Warning: Include in final notice letters when legal action is the next step

4. Credit Impact Notice: Include when reporting to credit agencies is a potential consequence

5. Statement of Account: Include for complex payment histories or multiple outstanding invoices

What schedules should be included in a Past Due Invoice Letter?

1. Copy of Original Invoice(s): Attached copies of all referenced unpaid invoices

2. Statement of Account: Detailed statement showing all transactions, payments, and outstanding balances

3. Payment History Record: Chronological record of all payments made and outstanding amounts

4. Original Contract Terms: If relevant, copy of original agreement showing payment terms

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

Invoice Form

Sector

Sales

Cost

Free to use
Relevant legal definitions
























Clauses



















Relevant Industries

Manufacturing

Retail

Wholesale

Professional Services

Construction

Technology

Healthcare

Education

Logistics

Consulting

Industrial

Real Estate

Agriculture

Mining

Energy

Relevant Teams

Finance

Accounts Receivable

Credit Control

Legal

Treasury

Operations

Administration

Commercial

Business Development

Corporate Secretariat

Relevant Roles

Chief Financial Officer

Finance Director

Accounts Receivable Manager

Credit Control Manager

Financial Controller

Collections Specialist

Accounts Manager

Treasury Manager

Credit Manager

Finance Operations Manager

Billing Coordinator

Account Executive

Business Development Manager

Legal Counsel

Company 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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