Document background
The Letter of Agreement for Payment of Debt is a crucial document used in Indonesian business and personal transactions when parties need to formalize arrangements for settling outstanding debts. This document type is particularly relevant when there is a need to restructure existing debt obligations or establish clear payment terms for acknowledged debts. It is governed by Indonesian law, specifically the Civil Code (KUHPerdata), and must comply with local stamp duty requirements to be legally enforceable. The agreement typically includes essential details such as the parties' information, debt amount, payment schedule, interest rates, and default provisions. It can be used in various contexts, from business-to-business transactions to personal loans, and may include additional provisions for security or guarantees. The document provides legal certainty and protection for both creditors and debtors while establishing a clear framework for debt settlement.
