Payment Arrangement Agreement Template for Indonesia

The Payment Arrangement Agreement is utilized when parties need to formalize terms for the systematic repayment of a debt or financial obligation in Indonesia. It's commonly used in situations where a debtor requires structured payment terms for an existing debt, or when parties wish to consolidate multiple payment obligations. The agreement must comply with Indonesian Civil Code requirements and relevant financial regulations, including Bank Indonesia regulations and OJK guidelines. This document typically includes detailed payment schedules, interest calculations, default provisions, and any security arrangements. It's particularly crucial in business relationships where clear payment terms need to be established and enforced, providing legal protection for both creditor and debtor while ensuring compliance with Indonesian law.

1. Parties: Identification of all parties to the agreement, including their legal names, addresses, and registration numbers

2. Background: Context of the debt or payment obligation, including reference to any original agreements or circumstances leading to this arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Acknowledgment of Debt: Clear statement of the total amount owed and acknowledgment of the debt by the debtor

5. Payment Terms: Detailed payment structure including amount, frequency, and duration of payments

6. Method of Payment: Specified payment methods and account details for making payments

7. Interest: Interest rates applicable to the outstanding amount, if any

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

9. Representations and Warranties: Standard representations about capacity to enter agreement and accuracy of information

10. Notices: How formal communications between parties should be made

11. Governing Law and Jurisdiction: Confirmation of Indonesian law as governing law and jurisdiction for disputes

12. Execution: Signature blocks and execution requirements