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A Claim Release Letter is a crucial legal instrument in Indonesian business and civil practice, used to formalize the settlement of disputes and prevent future litigation. This document type is particularly relevant when parties wish to resolve existing or potential claims without pursuing formal legal proceedings. The letter must be drafted in compliance with Indonesian law, particularly the Civil Code (KUHPerdata) and Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution. The Claim Release Letter typically includes specific details about the claims being released, any consideration provided, and the scope of the release. It's commonly used in various contexts including employment separations, accident settlements, commercial dispute resolutions, and insurance claim settlements. The document should be drafted with precision to ensure enforceability under Indonesian law and may require notarization or witness attestation depending on the nature and value of the claims being released.

1. Letter Date and Address Block: Formal letter heading including date and recipient's complete address

2. Party Identification: Clear identification of the releasing party and the party being released, including full legal names and addresses

3. Reference Line: Reference to any relevant previous correspondence, agreements, or incidents

4. Subject Matter: Clear statement of the letter's purpose as a claim release

5. Claim Description: Detailed description of the claims, disputes, or rights being released

6. Release Statement: Formal statement releasing the other party from claims, including the scope of release

7. Consideration: Statement of any payment or other consideration given in exchange for the release

8. Legal Effect: Statement confirming the binding nature and legal effect of the release

9. Signature Block: Space for signature, name, and title of the releasing party