Collection Agency Contract Template for Indonesia

The Collection Agency Contract serves as a crucial legal instrument in Indonesia's debt recovery landscape, providing a formal framework for outsourced debt collection activities. This document is essential when a company needs to engage professional debt collection services to recover outstanding payments while ensuring compliance with Indonesian regulations, particularly OJK Regulation No. 35/POJK.05/2018 and the Consumer Protection Law. The contract typically includes detailed provisions on collection methodologies, commission structures, compliance requirements, and operational procedures. It's particularly relevant in today's business environment where companies seek efficient debt recovery solutions while maintaining regulatory compliance and protecting their reputation. The agreement ensures both parties understand their rights, obligations, and limitations under Indonesian law, while establishing clear parameters for ethical debt collection practices.

1. Parties: Identifies the collection agency and the client company, including their complete legal names, registration numbers, and addresses

2. Background: Explains the context of the agreement, including the client's need for debt collection services and the agency's qualifications

3. Definitions: Defines key terms used throughout the agreement, including 'Debts', 'Collection Services', 'Commission', 'Recovery Rate', etc.

4. Appointment and Scope of Services: Details the formal appointment of the collection agency and the specific collection services to be provided

5. Rights and Authority: Outlines the powers granted to the collection agency to act on behalf of the client

6. Collection Procedures and Standards: Specifies the approved methods and protocols for debt collection, including compliance with Indonesian regulations

7. Fees and Commission Structure: Details the payment terms, commission rates, and calculation methods for successful collections

8. Reporting and Accounting: Specifies the frequency and format of collection activity reports and financial accounting requirements

9. Compliance and Ethics: Sets out compliance requirements with Indonesian laws and ethical standards for debt collection

10. Confidentiality: Establishes obligations regarding the protection of confidential information of both parties and debtors

11. Term and Termination: Specifies the duration of the agreement and conditions for termination

12. Governing Law and Dispute Resolution: Confirms Indonesian law as governing law and outlines dispute resolution procedures