Disengagement Letter Template for Indonesia

The Disengagement Letter is a crucial document used in Indonesian business practice when formally ending a professional service relationship or engagement. It serves as an official record of termination, protecting both parties' interests under Indonesian law and ensuring compliance with the Indonesian Civil Code (Kitab Undang-undang Hukum Perdata). This document should be used when a service provider or client wishes to formally terminate their professional relationship, whether due to project completion, strategic changes, or other circumstances requiring service discontinuation. The letter typically includes key information such as termination effective date, reasons for disengagement, handling of ongoing matters, final billing arrangements, and document retention policies. It's particularly important in regulated industries where formal documentation of relationship termination is required and must often be bilingual (Indonesian and English) to comply with Law No. 24 of 2009.

1. Letter Header: Company letterhead, date, reference number, and recipient's complete address

2. Subject Line: Clear indication that this is a Disengagement Letter

3. Opening Salutation: Formal greeting to the appropriate contact person

4. Reference to Existing Engagement: Specific details of the current engagement including contract dates and scope of services

5. Termination Statement: Clear and unambiguous statement of service termination, including effective date

6. Reason for Disengagement: Professional and objective explanation for the termination of services

7. Outstanding Matters: Summary of any pending work, deliverables, or payments

8. Transition Process: Details of how ongoing matters will be handled and transferred

9. Final Instructions: Clear instructions regarding final actions required from either party

10. Document Return/Retention: Information about handling of client documents and data

11. Closing Statement: Professional closing with acknowledgment of past business relationship

12. Signature Block: Formal signature section with name and title of authorized signatory