Release Of Claims Form Template for Indonesia

A Release Of Claims Form is a legally binding document that allows parties in Indonesia to formally settle disputes and waive future legal claims. Under Indonesian Civil Code (KUHPerdata) Articles 1851-1864, this document creates a settlement agreement (perdamaian) that prevents either party from pursuing litigation on the released matters. You'll need this form when resolving conflicts outside of court, whether in business disputes, employment issues, or personal injury cases.

When do you need this document?

You need a Release Of Claims Form when settling employment disputes following termination under Law No. 13 of 2003 on Employment, particularly for severance pay agreements or workplace injury claims. It's essential in business contexts when resolving contractual disputes between companies, shareholders, or joint venture partners without going to court. Personal injury cases involving insurance companies or individual defendants also require this document to finalize compensation agreements. The form is crucial in corporate transactions where potential liabilities need to be addressed, and in construction or service contracts when settling performance disputes or payment issues.

Key legal considerations

Your Release Of Claims Form must include adequate consideration (compensation) to be legally valid under Indonesian contract law. The document should clearly define all claims being released, including known and unknown claims up to the execution date, while ensuring the language doesn't violate public policy or mandatory legal protections. You must specify whether the release is mutual or unilateral, and include appropriate reservation clauses for any claims you wish to preserve. The form should address confidentiality provisions if required, and ensure that any settlement involving employment matters complies with minimum standards under Indonesian labor law that cannot be waived.

Legal requirements in Indonesia

Under Indonesian Civil Code Article 1320, your Release Of Claims Form must meet four validity requirements: agreement of the parties, capacity to contract, a specific subject matter, and a lawful cause. The document requires proper identification of all parties with full legal names and addresses, and must be executed voluntarily without coercion or fraud. For employment-related releases, you must comply with Law No. 13 of 2003 requirements, including mandatory waiting periods and specific procedural safeguards for employee protection. If the release involves significant amounts or complex matters, consider having it witnessed or notarized under Indonesian notarial law. The document should be drafted in Indonesian language or include certified translations to ensure enforceability in Indonesian courts, and must comply with Supreme Court Regulation No. 1 of 2016 if arising from mediation proceedings.