An Authorization Letter For Payment is a crucial document in Indonesian business and personal financial transactions, used when an individual or organization needs to delegate payment authority to another party. This document is particularly relevant when the primary party cannot personally handle payment transactions, requiring a trusted representative to act on their behalf. The letter must comply with Indonesian Civil Code (Kitab Undang-undang Hukum Perdata) requirements for agency relationships and Bank Indonesia regulations regarding payment authorizations. It typically includes comprehensive details about the parties involved, specific payment authorities granted, transaction limits, and duration of authorization. The document is commonly used for both one-time significant transactions and recurring payment arrangements, requiring proper witnessing and sometimes notarization depending on the transaction value and nature.

1. Date and Place: Current date and location where the letter is being executed

2. Authorizer Details: Complete name, address, and identification details of the person giving authorization

3. Authorized Party Details: Complete name, address, and identification details of the person being authorized to make/receive payment

4. Payment Details: Specific details about the payment including amount, purpose, and payment method

5. Authorization Statement: Clear statement of the authority being granted for payment purposes

6. Duration of Authority: Timeframe for which the authorization is valid

7. Signature Block: Space for signatures of authorizer, authorized party, and witnesses if required