Deferred Payment Agreement for Indonesia

Deferred Payment Agreement Template for Indonesia

A Deferred Payment Agreement is a legally binding document under Indonesian law that structures the repayment of a debt or obligation over an agreed period. The agreement, governed by Indonesian Civil Code and relevant financial regulations, sets out detailed payment terms, interest calculations, security arrangements (if any), and remedies in case of default. It must comply with Bank Indonesia regulations regarding currency use and payment systems, while providing clear mechanisms for enforcement under Indonesian jurisdiction. The document includes comprehensive provisions for payment schedules, notice requirements, and dispute resolution mechanisms tailored to the Indonesian legal framework.

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What is a Deferred Payment Agreement?

The Deferred Payment Agreement is utilized when parties need to formally structure the repayment of a debt or financial obligation over time under Indonesian law. This document type is particularly relevant in commercial transactions where immediate full payment is not feasible or desirable. The agreement must comply with Indonesian Civil Code (KUHPerdata) requirements for valid contracts and Bank Indonesia regulations regarding payment terms and currency use. A properly drafted Deferred Payment Agreement will include detailed payment schedules, interest calculations, default provisions, and any applicable security arrangements. It's commonly used in various business contexts, from property transactions to commercial supply arrangements, and can be adapted to include additional provisions such as guarantees or specific security arrangements based on the parties' needs.

What sections should be included in a Deferred Payment Agreement?

1. Parties: Identification and details of the parties entering into the agreement

2. Background: Context of the agreement, including the original debt or obligation being deferred

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

4. Payment Terms: Detailed payment schedule, amounts, and mechanics of payment

5. Interest: Interest rates applicable to the deferred payments and calculation method

6. Currency and Mode of Payment: Specification of payment currency (typically Rupiah) and acceptable payment methods

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

8. Default and Remedies: Events of default and consequences, including acceleration rights

9. Notices: Process and requirements for formal communications between parties

10. Governing Law and Jurisdiction: Confirmation of Indonesian law application and jurisdiction

11. Amendment and Assignment: Provisions regarding modification of agreement and transfer of rights

12. Entire Agreement: Integration clause confirming this document represents the complete agreement

What sections are optional to include in a Deferred Payment Agreement?

1. Security: Details of any collateral or security provided - include when payment is secured by assets

2. Guarantee: Terms of any third-party guarantee - include when a guarantor is involved

3. Early Payment Provisions: Terms for early repayment options - include when early payment is allowed

4. Tax Provisions: Allocation of tax obligations - include when tax implications are significant

5. Force Majeure: Provisions for unforeseen circumstances - include for longer-term payment arrangements

6. Insurance Requirements: Required insurance coverage - include when secured assets need protection

7. Conditions Precedent: Prerequisites before agreement becomes effective - include for complex arrangements

What schedules should be included in a Deferred Payment Agreement?

1. Payment Schedule: Detailed breakdown of payment dates, amounts, and installments

2. Asset Schedule: Description of any assets provided as security

3. Interest Calculation Examples: Examples showing how interest will be calculated

4. Form of Payment Notice: Template for payment notifications

5. Original Debt Documentation: References or copies of documents evidencing the original debt

6. Specimen Signatures: Authorized signatures for payment instructions and notices

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

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Relevant Industries

Banking and Financial Services

Real Estate and Property

Manufacturing

Retail and Consumer Goods

Construction

Infrastructure

Energy

Agriculture

Mining

Technology and Software

Professional Services

Healthcare

Education

Relevant Teams

Legal

Finance

Treasury

Credit Control

Accounts Receivable

Risk Management

Compliance

Commercial Operations

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Credit Controller

Financial Controller

Legal Counsel

Commercial Director

Accounts Receivable Manager

Credit Risk Manager

Business Development Manager

Contract Manager

Corporate Secretary

Compliance Officer

Risk 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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