Guarantor Letter Template for Indonesia

The Guarantor Letter is a crucial document in Indonesian business and financial transactions, used when a third party needs to provide additional security for another's obligations. This document, governed by Indonesian law and particularly the Civil Code (KUHPerdata), is commonly required by banks, financial institutions, and businesses to mitigate credit risk. The letter must clearly state the scope of the guarantee, the maximum liability amount, and the duration of the guarantee. It's particularly important in situations where the principal debtor's creditworthiness alone is insufficient to secure a loan or business transaction. The document typically includes detailed identification of all parties, specific references to the underlying obligation being guaranteed, and explicit terms of the guarantee commitment. The Guarantor Letter must be properly executed according to Indonesian legal requirements to ensure enforceability.

1. Letter Header: Official letterhead, date, and reference number

2. Addressee Details: Complete details of the beneficiary of the guarantee (typically the creditor)

3. Subject Line: Clear indication that this is a Guarantee Letter (Surat Jaminan)

4. Primary Debt Reference: Details of the main agreement or debt being guaranteed, including relevant contract numbers and dates

5. Guarantor Declaration: Clear statement of guarantee commitment and the scope of the guarantee

6. Guaranteed Amount: Specific amount being guaranteed or method of calculation

7. Duration of Guarantee: Validity period of the guarantee, including start and end dates

8. Guarantor's Details: Complete identification and contact details of the guarantor

9. Governing Law Statement: Explicit statement that the guarantee is governed by Indonesian law

10. Signature Block: Space for guarantor's signature, witness signatures if required, and any necessary stamps