Repayment Contract Agreement Template for Indonesia

The Repayment Contract Agreement is a crucial legal instrument used in Indonesian business and financial transactions to formalize debt repayment arrangements between parties. This document is typically employed when there is a need to restructure existing debt, formalize informal lending arrangements, or establish clear repayment terms for outstanding obligations. It must comply with Indonesian Civil Code requirements and financial regulations, including those set by Bank Indonesia regarding interest rates and payment terms. The agreement is particularly important in providing legal certainty and enforcement mechanisms for both creditors and debtors, incorporating essential elements such as payment schedules, default provisions, and security arrangements where applicable. It serves as a key risk management tool for creditors while providing clear obligations and protections for debtors under Indonesian law.

1. Parties: Identification and details of the creditor and debtor, including their legal status and addresses

2. Background: Context of the debt, including reference to any original loan agreement or circumstances leading to the repayment obligation

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. Repayment Terms: Detailed terms including total amount, installment amounts, payment dates, and payment method

6. Interest: Interest rate, calculation method, and payment terms

7. Payment Method: Specified payment mechanisms and account details

8. Default and Consequences: Definition of default events and consequences, including late payment penalties

9. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority

10. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes

11. Notices: Process and addresses for formal communications between parties

12. Amendment and Assignment: Terms for modifying the agreement and restrictions on assignment

13. Entire Agreement: Confirmation that this document represents the complete agreement between parties