Document background
The Promissory Agreement serves as a fundamental legal instrument in Indonesian business and financial transactions, governed by the Indonesian Civil Code (KUHPer) and related financial regulations. It is commonly used when one party needs to formalize a promise to pay a specific sum to another, whether in business lending, commercial transactions, or personal loans. The document captures essential details including payment terms, interest rates, and enforcement mechanisms, while ensuring compliance with Indonesian banking regulations and monetary laws. This type of agreement is particularly important in Indonesia's civil law system, where written documentation of debt obligations is crucial for legal enforcement and protection of both parties' interests.
