Credit Sale Agreement Template for Indonesia

The Credit Sale Agreement is a fundamental commercial document used in Indonesian business transactions where goods or assets are sold on credit terms. It serves as a crucial instrument for businesses seeking to expand their sales while managing credit risk, and for buyers looking to acquire assets through installment payments. The agreement must comply with Indonesian Civil Code requirements, OJK regulations, and consumer protection laws. It typically includes provisions for the sale price, payment schedule, interest calculations, security arrangements, and default remedies. This document is particularly important in Indonesia's growing consumer market and business-to-business transactions, where credit sales are increasingly common across various sectors. The agreement must be structured to provide adequate protection for both parties while ensuring enforceability under Indonesian law.

1. Parties: Identification of the seller/creditor and buyer/debtor with complete legal names and addresses

2. Background: Context of the transaction and relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Details of the goods/assets being sold and purchased

5. Purchase Price and Payment Terms: Total purchase price, down payment, credit amount, and payment schedule

6. Interest and Fees: Interest rate, calculation method, and applicable fees

7. Security Arrangements: Details of any security or collateral provided for the credit

8. Conditions Precedent: Conditions that must be satisfied before the agreement becomes effective

9. Representations and Warranties: Statements of fact and assurances from both parties

10. Covenants: Ongoing obligations of the parties during the credit term

11. Events of Default: Circumstances constituting default and consequences

12. Enforcement Rights: Rights and remedies of the creditor upon default

13. Term and Termination: Duration of the agreement and termination provisions

14. Notices: Method and addresses for formal communications

15. Governing Law: Confirmation of Indonesian law as governing law

16. Dispute Resolution: Process for resolving disputes

17. General Provisions: Standard boilerplate clauses including severability, entire agreement, etc.

18. Execution: Signature blocks and execution formalities