Document background
An IOU Note is a fundamental debt instrument commonly used in Indonesian business and personal transactions to document monetary obligations. This document type is particularly useful when parties need a straightforward but legally binding record of a debt, whether for business financing, personal loans, or commercial transactions. The IOU Note must comply with Indonesian legal requirements, including proper execution under the Civil Code (KUHPer) and appropriate stamp duty application. It serves as prima facie evidence of debt in legal proceedings and can be used for various purposes, from simple personal loans to more complex business transactions. The document typically includes the debt amount, payment terms, party information, and any applicable interest rates or security arrangements. While simpler than a full loan agreement, an IOU Note still provides legal protection for both creditor and debtor under Indonesian law.
