Document background
An Extension Letter is a crucial document in Indonesian business practice used when parties wish to continue their contractual relationship beyond the original term of their agreement. This document type is particularly relevant in situations where the original agreement is approaching its expiration date, but both parties wish to maintain their business relationship under substantially the same terms. The Extension Letter must comply with Indonesian law requirements, including the Indonesian Civil Code (KUH Perdata) and, where applicable, sector-specific regulations. It should be drafted in the Indonesian language (or bilingually if involving foreign parties) and typically includes key information such as reference to the original agreement, the new extension period, any modified terms, and proper execution blocks. This document is commonly used across various industries and can be applied to different types of agreements, from service contracts to lease agreements.
