Declination Letter Template for Indonesia

The Declination Letter is a crucial business document used in Indonesian business contexts to formally communicate the rejection of proposals, offers, invitations, or applications. It must comply with Indonesian legal requirements, particularly the Civil Code (KUHPerdata) and Law No. 8 of 1997 on Company Documents. The document serves multiple purposes: it provides clear communication of the declination decision, maintains professional relationships, creates a formal record of the decision, and protects legal interests. When drafting a Declination Letter, consideration must be given to Indonesian business etiquette, which emphasizes politeness and maintaining harmony in business relationships. The document typically includes reference to the original proposal, clear reasoning for declination, and appropriate formal closing remarks, all while ensuring compliance with Indonesian language requirements under Law No. 24 of 2009.

1. Header Information: Company letterhead, date, reference number, and formal addressing details of both sender and recipient

2. Subject Line: Clear indication of what is being declined (e.g., 'Re: Declination of [Specific Offer/Proposal]')

3. Salutation: Formal greeting appropriate to Indonesian business culture

4. Reference to Original: Clear reference to the original offer/proposal being declined, including relevant dates and reference numbers

5. Main Declination Statement: Clear, direct but polite statement of declination

6. Reason for Declination: Brief, professional explanation of the main reasons for declining

7. Appreciation: Expression of gratitude for the opportunity

8. Future Relations: Statement maintaining positive business relations for future opportunities

9. Closing: Formal closing, signature block, and company details