The Confirmation of Interest Letter is a crucial preliminary document in Indonesian business practice, used to formally express interest in business opportunities while maintaining flexibility before entering into binding agreements. It serves as a strategic tool in various contexts, from responding to tender opportunities to indicating interest in potential investments or acquisitions. Under Indonesian law, these letters must be carefully drafted to comply with local requirements, particularly regarding language (Law No. 24 of 2009) and corporate authority (Law No. 40 of 2007). While generally non-binding, the Confirmation of Interest Letter can include specific binding provisions such as confidentiality obligations or exclusivity periods. The document typically outlines the party's understanding of the opportunity, preliminary terms of interest, and proposed next steps, serving as a foundation for further negotiations and due diligence processes.
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1. Letterhead and Date: Company letterhead, date, and reference number if applicable
2. Recipient Details: Full name, title, and address of the recipient
3. Subject Line: Clear indication of the subject matter or project reference
4. Introduction: Opening paragraph identifying the writer and referencing any previous discussions or meetings
5. Expression of Interest: Clear statement of interest in the specific opportunity, project, or transaction
6. Project Understanding: Brief description demonstrating understanding of the opportunity or project
7. Preliminary Terms: High-level outline of key terms or conditions of interest
8. Next Steps: Proposed actions or timeline for moving forward
9. Contact Details: Primary contact person and their details for further communication
10. Signature Block: Signature, name, and title of authorized representative
1. Confidentiality Statement: Include when discussing sensitive business information or when a separate NDA is not in place
2. Exclusivity Request: Include when requesting exclusive negotiation rights for a specific period
3. Company Profile Summary: Include when the recipient may not be familiar with the sending organization
4. Validity Period: Include when the expression of interest needs to be time-bound
5. Non-Binding Statement: Include to explicitly state that the letter does not constitute a binding commitment except for specific provisions
6. Language Compliance Notice: Include when the letter is bilingual to comply with Indonesian Law No. 24 of 2009
1. Corporate Information: Basic company information, registration details, and authority of signatory
2. Project Brief: Summary of the project or opportunity being pursued, if provided by the recipient
3. Initial Timeline: Proposed schedule for next steps and key milestones
4. Supporting Documents: List of relevant certifications, licenses, or qualifications that support the expression of interest
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