Compensation Demand Letter Template for Indonesia

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Key Requirements PROMPT example:

Compensation Demand Letter

"I need a Compensation Demand Letter to claim IDR 500,000,000 from PT Global Industries for breach of our supply contract dated January 15, 2025, with a 14-day payment deadline and the option for arbitration if unresolved."

Document background
The Compensation Demand Letter is a crucial legal instrument in Indonesian civil dispute resolution, serving as a formal prerequisite before initiating court proceedings. This document is utilized when one party seeks to recover damages, losses, or unpaid obligations from another party, whether in business-to-business, business-to-consumer, or individual-to-individual contexts. The letter must comply with Indonesian legal requirements and typically includes detailed descriptions of the incident, legal basis for the claim, specific compensation amount, and payment terms. It's essential to draft this document in accordance with the Indonesian Civil Code (KUHPerdata) and relevant civil procedure laws, as it may later serve as evidence in court proceedings if the dispute escalates.
Suggested Sections

1. Sender's Details: Complete name, address, and contact information of the party making the compensation claim

2. Recipient's Details: Complete name, address, and contact information of the party from whom compensation is being demanded

3. Date and Reference Number: Formal date of the letter and any reference numbers for tracking purposes

4. Subject Line: Clear indication that this is a formal compensation demand letter (Surat Somasi)

5. Incident Description: Detailed factual description of the incident or circumstances leading to the compensation claim

6. Legal Basis: Citation of relevant legal provisions supporting the claim for compensation

7. Compensation Details: Specific amount demanded and breakdown of how the amount was calculated

8. Payment Terms: Clear deadline for payment and acceptable payment methods

9. Consequences of Non-Compliance: Statement of legal actions that will be taken if the demand is not met within the specified timeframe

Optional Sections

1. Previous Communications: Reference to any previous attempts to resolve the matter, used when prior communication exists

2. Witness Information: Details of witnesses to the incident, included when witnesses are available to support the claim

3. Settlement Terms: Proposed terms for alternative resolution, included when the sender is open to negotiation

4. Power of Attorney Reference: Required when the letter is sent by a legal representative on behalf of the claimant

Suggested Schedules

1. Evidence Documentation: Copies of relevant documents, photographs, or other evidence supporting the claim

2. Damage Assessment Report: Professional assessment or evaluation of damages, if applicable

3. Previous Correspondence: Copies of relevant previous communications between parties

4. Cost Breakdown: Detailed calculation of the compensation amount being claimed

5. Power of Attorney: If the letter is sent by a legal representative, the formal authorization document

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries

Legal Services

Insurance

Manufacturing

Retail

Construction

Healthcare

Transportation

Real Estate

Professional Services

Financial Services

Education

Hospitality

Technology

Energy

Telecommunications

Relevant Teams

Legal

Compliance

Risk Management

Corporate Affairs

Claims Processing

Customer Relations

Dispute Resolution

Contract Administration

Insurance Operations

Corporate Governance

Relevant Roles

Legal Counsel

Claims Manager

Risk Manager

Compliance Officer

Corporate Secretary

Business Owner

Contract Administrator

Insurance Claims Adjuster

Legal Operations Manager

Dispute Resolution Specialist

Corporate Lawyer

Paralegal

Chief Legal Officer

General Manager

Customer Relations Manager

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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