Installment Plan Agreement Template for Indonesia

The Installment Plan Agreement is essential for businesses operating in Indonesia that offer goods or services on a payment plan basis. This document is particularly relevant in today's market where flexible payment options are increasingly demanded by consumers and businesses alike. The agreement must comply with Indonesian legal requirements, including the Civil Code, Consumer Protection Law, and Financial Services Authority regulations. It is designed to protect both the seller's and buyer's interests by clearly defining payment terms, ownership rights, and default consequences. The document is typically used for significant purchases where immediate full payment is not practical or desired, and can be adapted for various industries from retail to industrial equipment. The agreement includes crucial elements such as payment schedules, interest calculations (if applicable), security provisions, and transfer of title conditions, all structured to ensure enforceability under Indonesian law.

1. Parties: Identifies and provides full details of the parties entering into the agreement, including their legal names, addresses, and registration numbers if applicable

2. Background: Provides context for the agreement and outlines the intention of the parties to enter into an installment payment arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Subject Matter: Describes the product(s) or service(s) being purchased under the installment plan

5. Purchase Price and Payment Terms: Specifies the total purchase price, down payment, number of installments, installment amounts, and payment schedule

6. Payment Method: Details the accepted methods of payment and processing procedures

7. Delivery and Transfer of Title: Outlines when and how the goods will be delivered and when legal ownership transfers

8. Rights and Obligations: Lists the specific rights and obligations of both parties under the agreement

9. Default and Consequences: Defines what constitutes default and the consequences of missing payments or other breaches

10. Termination: Specifies conditions under which the agreement can be terminated and the consequences

11. Governing Law: Confirms Indonesian law as governing law and specifies jurisdiction for disputes

12. Notices: Specifies how formal communications between parties should be made and delivered

13. Execution: Formal closing section with signature blocks and witness provisions as required under Indonesian law