Document background
The Personal Guarantee Letter is a crucial document in Indonesian business and financial transactions, commonly used when additional security is required for loans, credit facilities, or other financial obligations. This document, governed by Indonesian law and particularly the Civil Code (KUHPer), provides creditors with additional security by allowing them to claim against the personal assets of the guarantor if the principal debtor defaults. The guarantee letter must include specific details about the guaranteed obligation, the parties involved, and the extent of the guarantor's liability. It's particularly important in business financing, property transactions, and corporate lending where the creditor requires personal commitment from company directors or shareholders. The document must be carefully drafted to ensure enforceability under Indonesian law and typically requires proper witnessing or notarization.
