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The Letter for Demand Draft is an essential banking document used in Indonesia's financial system when a secure, bank-guaranteed form of payment is required. This document type is commonly utilized when businesses or individuals need to make payments where regular checks or direct transfers are not preferred or accepted. The Letter for Demand Draft must comply with Indonesian banking regulations, including Law No. 7 of 1992 on Banking (as amended) and Bank Indonesia's payment system regulations. It contains crucial information such as the requestor's account details, beneficiary information, payment amount, and purpose, along with necessary authorizations. This document is particularly important for business transactions, international payments, or situations requiring a guaranteed form of payment, as the demand draft is essentially a bank's undertaking to pay the specified amount to the beneficiary.

1. Letter Header: Bank's complete name and address, branch details, and date

2. Subject Line: Clear indication that this is a request for demand draft issuance

3. Salutation: Formal greeting to the bank manager or relevant authority

4. Account Details: Writer's account number, type, and branch details

5. Request Details: Specific request for demand draft issuance including amount in figures and words

6. Beneficiary Information: Complete name and details of the payee/beneficiary

7. Payment Details: Amount, currency, and purpose of payment

8. Authorization: Express authorization to debit account and process necessary charges

9. Closing: Professional closing with full name, signature, and contact details of the requestor