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Amicable Settlement Agreement Template for Indonesia

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Key Requirements PROMPT example:

Amicable Settlement Agreement

"I need an Amicable Settlement Agreement under Indonesian law to resolve a construction dispute between PT Building Solutions and PT Developer Group, including a payment schedule for IDR 5 billion to be paid in installments throughout 2025 and the completion of remedial works."

Document background
The Amicable Settlement Agreement is a crucial document in Indonesian business and legal practice, used when parties wish to resolve their disputes without resorting to lengthy and costly court proceedings. This document type is particularly relevant in the Indonesian legal context, where alternative dispute resolution is encouraged under Law No. 30 of 1999 and the Civil Code (KUHPerdata). It is commonly used to resolve various types of disputes, from commercial disagreements to employment matters, and can be implemented either independently or as part of a mediation process. The agreement typically includes comprehensive settlement terms, releases, and implementation mechanisms, ensuring that all parties have clarity on their rights and obligations post-settlement. The document must comply with Indonesian legal requirements for settlement agreements, including potential notarization requirements for certain types of settlements.
Suggested Sections

1. Parties: Identification and details of all parties involved in the settlement, including their legal capacity and authority to enter into the agreement

2. Background: Recitals describing the nature of the dispute, any previous proceedings or attempts at resolution, and the parties' desire to settle amicably

3. Definitions: Definitions of key terms used throughout the agreement to ensure clarity and prevent misinterpretation

4. Settlement Terms: The core settlement provisions including any payments, actions, or obligations agreed upon by the parties

5. Release and Waiver: Mutual release of claims and waiver of rights related to the dispute being settled

6. Confidentiality: Provisions regarding the confidentiality of the settlement terms and related discussions

7. Implementation: Timeline and process for implementing the settlement terms, including payment schedules if applicable

8. Representations and Warranties: Statements by each party confirming their authority, understanding, and capacity to enter into the agreement

9. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and designation of relevant jurisdiction for any future disputes

10. Execution: Signature blocks and execution requirements, including any necessary witnessing or notarization

Optional Sections

1. Non-Disparagement: Mutual agreements not to make negative statements about other parties - typically included when reputational issues are involved

2. Tax Implications: Provisions addressing the tax treatment of settlement payments - included when significant financial settlements are involved

3. Future Cooperation: Terms for ongoing business relationships - included when parties plan to continue working together

4. Third Party Rights: Provisions addressing rights of third parties affected by the settlement - included when settlement impacts other parties

5. Insurance and Indemnification: Provisions regarding insurance claims and indemnification - included when insurance companies are involved or future claims might arise

6. Alternative Dispute Resolution: Procedures for resolving future disputes - included when parties want to specify mediation or arbitration for future issues

Suggested Schedules

1. Payment Schedule: Detailed schedule of any settlement payments, including amounts, dates, and payment methods

2. Release Documentation: Forms and documents evidencing the release of claims or withdrawal of legal proceedings

3. Implementation Timeline: Detailed timeline for implementing various aspects of the settlement

4. Asset Transfer Schedule: List and details of any assets being transferred as part of the settlement

5. Related Agreements: Copies of any related agreements referenced in the main agreement

6. Power of Attorney: If applicable, documentation authorizing representatives to act on behalf of parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























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Relevant Industries

Manufacturing

Real Estate

Construction

Financial Services

Technology

Energy

Mining

Retail

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Transportation

Agriculture

Professional Services

Education

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Relevant Teams

Legal

Compliance

Risk Management

Executive Leadership

Human Resources

Finance

Operations

Commercial

Corporate Affairs

Business Development

Relevant Roles

Legal Counsel

Corporate Secretary

Chief Legal Officer

Compliance Officer

Risk Manager

Chief Executive Officer

Chief Financial Officer

Business Development Manager

Human Resources Director

Operations Manager

Contract Manager

Dispute Resolution Specialist

Commercial Director

Project Manager

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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