Letter Of Debt Payment Agreement Template for Indonesia

A Letter of Debt Payment Agreement is a crucial document used in Indonesian business and personal financial transactions to formalize debt repayment arrangements. This document becomes necessary when parties need to establish, modify, or restructure payment terms for an existing debt obligation. The agreement, governed by Indonesian law and particularly the Civil Code (KUHPerdata), serves as legal evidence of the debt acknowledgment and the agreed payment terms. It typically includes details about the original debt, payment schedule, interest rates, and consequences of default. The document can be used in various contexts, from personal loans to corporate debt restructuring, and may require notarization depending on the amount and nature of the debt. The Letter of Debt Payment Agreement provides legal certainty and protection for both creditors and debtors while ensuring compliance with Indonesian financial regulations and debt settlement procedures.

1. Date and Place: Specific date and location where the letter is executed

2. Parties' Information: Complete details of the creditor and debtor, including full names, addresses, and identification numbers

3. Reference to Original Debt: Clear statement of the original debt arrangement, including date and circumstances of the debt creation

4. Debt Amount Acknowledgment: Specific acknowledgment of the total debt amount in both numbers and words

5. Payment Terms: Detailed payment schedule, including amounts, frequency, and method of payment

6. Interest Rate: Statement of applicable interest rate, if any

7. Payment Period: Start and end dates of the payment arrangement

8. Default Provisions: Consequences of missing payments or defaulting on the agreement

9. Signatures: Space for signatures of both parties and witnesses