Partial Payment Agreement Letter Template for Indonesia

The Partial Payment Agreement Letter is a crucial document used in Indonesian business and financial transactions when a debtor needs to restructure their payment obligations to a creditor. This document is particularly relevant in situations where full immediate payment isn't feasible, but both parties wish to maintain a constructive business relationship while ensuring legal compliance. The letter, governed by Indonesian law and particularly the Civil Code (KUH Perdata), documents the original debt, acknowledges the outstanding amount, and establishes a new payment schedule that both parties agree to. It's commonly used during financial hardship, business restructuring, or when managing cash flow challenges, providing a legally binding framework for debt resolution while protecting both parties' interests. The document must include specific elements required by Indonesian law to be enforceable, such as clear identification of parties, detailed payment terms, and proper execution requirements.

1. Letter Header: Date, reference number, and formal letterhead

2. Recipient Details: Complete name and address of the creditor/recipient

3. Subject Line: Clear indication that this is a Partial Payment Agreement Letter

4. Opening Salutation: Formal greeting to the recipient

5. Original Debt Reference: Details of the original debt, including date, amount, and any reference numbers

6. Acknowledgment of Debt: Clear statement acknowledging the total outstanding amount

7. Proposed Payment Terms: Detailed outline of the partial payment arrangement, including payment schedule and amounts

8. Payment Method: Specification of how payments will be made, including bank account details if applicable

9. Declaration of Commitment: Statement of commitment to fulfill the payment obligations as outlined

10. Closing: Formal closing statement and signature block