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Debt Clearance Letter Template for Indonesia

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Key Requirements PROMPT example:

Debt Clearance Letter

"I need a Debt Clearance Letter for a corporate loan of IDR 500 million that will be fully repaid on March 15, 2025, to be notarized and issued by our bank's Jakarta branch."

Document background
A Debt Clearance Letter is essential in Indonesian business and personal transactions where there's a need to formally document the complete settlement of a debt obligation. This document is commonly used when loans are fully repaid, when business relationships involving credit are concluded, or when parties need to prove that no outstanding debts exist. The letter must comply with Indonesian Civil Code requirements and may need notarization for added legal weight. It typically includes details of the original debt, confirmation of full payment, and a clear release statement. In Indonesian business practice, having a formal Debt Clearance Letter is particularly important for maintaining clear financial records and preventing future disputes about debt obligations.
Suggested Sections

1. Letter Header: Date, reference number, and formal letterhead including creditor's details

2. Addressee Details: Complete name and address of the debtor

3. Subject Line: Clear indication that this is a Debt Clearance Letter (Surat Pelunasan Hutang)

4. Debt Details: Original debt amount, date of debt creation, and any relevant agreement references

5. Payment Confirmation: Confirmation of the full payment received, including payment date and method

6. Release Statement: Clear statement confirming that the debt has been fully settled and the debtor is released from all related obligations

7. Closing: Formal closing statement, date, and signature block for creditor

Optional Sections

1. Payment History: Detailed breakdown of payment history if the debt was settled in multiple installments

2. Related Agreements: References to other related agreements or documents if the debt was part of a larger transaction

3. Witness Section: Space for witness signatures if additional verification is required

4. Notary Statement: Section for notary verification if the letter needs to be notarized

5. Foreign Currency Statement: Required when the original debt was in foreign currency, stating the conversion rates and compliance with Indonesian currency laws

Suggested Schedules

1. Payment Receipt: Copy of the final payment receipt or bank transfer confirmation

2. Original Debt Agreement: Copy of the original agreement or document that created the debt obligation

3. Payment History Statement: Detailed statement showing all payments made and dates if paid in installments

4. Related Correspondence: Copies of any relevant correspondence regarding the debt settlement

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




















Clauses


















Relevant Industries

Banking & Financial Services

Real Estate

Commercial Lending

Retail

Manufacturing

Construction

Professional Services

Small & Medium Enterprises

Agriculture

Import/Export

Educational Institutions

Healthcare

Relevant Teams

Legal

Finance

Accounts Receivable

Treasury

Credit Control

Compliance

Corporate Secretariat

Risk Management

Collections

Account Management

Relevant Roles

Finance Manager

Credit Controller

Accounts Receivable Manager

Legal Counsel

Chief Financial Officer

Treasury Manager

Credit Risk Manager

Collections Manager

Financial Controller

Compliance Officer

Corporate Secretary

Business Owner

Accountant

Debt Recovery Specialist

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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