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Letter Of Collection

Letter Of Collection Template for Indonesia

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Key Requirements PROMPT example:

Letter Of Collection

"I need a Letter of Collection for an unpaid invoice of IDR 75,000,000 from a manufacturing client in Jakarta, with a final payment deadline of March 15, 2025, including a warning about legal action if payment isn't received within 14 days."

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Document background
The Letter of Collection is a crucial document in Indonesian business practice, used when formal attempts are made to recover outstanding debts. This document type is particularly important in Indonesia's business environment, where it must comply with specific local regulations including the Civil Code (KUHPerdata), Financial Services Authority (OJK) regulations, and consumer protection laws. A Letter of Collection typically follows initial informal payment requests and serves as a formal demand for payment, often preceding legal action. It includes essential details such as the debt amount, payment history, due date, and payment instructions, while maintaining professional language that adheres to Indonesian debt collection practices. The document is commonly used by businesses, financial institutions, and collection agencies operating within Indonesia's jurisdiction.
Suggested Sections

1. Sender Details: Full name, address, and contact information of the collecting entity

2. Date: Current date of the letter

3. Recipient Details: Full name and address of the debtor

4. Reference Number: Unique identifier for the collection case

5. Subject Line: Clear indication that this is a collection letter with reference to the debt

6. Debt Information: Details of the original debt, including amount, date incurred, and purpose

7. Current Amount Due: Total amount currently owed, including any interest or penalties

8. Payment Demand: Clear statement of payment requirement and deadline

9. Payment Instructions: Detailed information on how and where to make the payment

10. Closing Statement: Professional closing with contact information for queries

11. Signature Block: Signature and details of authorized representative

Optional Sections

1. Previous Communications Reference: Reference to prior collection attempts or correspondence, used when there have been previous collection attempts

2. Legal Consequences: Description of potential legal actions if payment is not received, used when escalation is warranted

3. Payment Plan Option: Proposed payment plan terms, used when the collector is willing to accept installment payments

4. Dispute Rights: Information about the debtor's right to dispute the debt, used when required by local regulations

5. Settlement Offer: Proposed settlement amount if paying less than full amount, used when authorized to negotiate

Suggested Schedules

1. Debt Calculation Schedule: Detailed breakdown of the original debt, interest, penalties, and total amount due

2. Payment History: Record of any previous payments made and their application to the debt

3. Supporting Documents: Copies of relevant documents proving the debt (contracts, invoices, etc.)

4. Statement of Account: Comprehensive statement showing all transactions related to the debt

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

alex.den.21@genieai.co
Relevant legal definitions




















Clauses




















Relevant Industries

Banking and Financial Services

Insurance

Retail

Manufacturing

Professional Services

Healthcare

Telecommunications

Utilities

Real Estate

Construction

Education

Technology

Consumer Goods

Business Services

Relevant Teams

Legal

Finance

Accounts Receivable

Credit Control

Collections

Treasury

Risk Management

Compliance

Customer Relations

Operations

Relevant Roles

Credit Controller

Collections Manager

Accounts Receivable Manager

Finance Director

Credit Risk Manager

Legal Counsel

Collections Specialist

Financial Controller

Account Manager

Treasury Manager

Debt Recovery Officer

Credit Analysis Manager

Finance Manager

Legal Manager

Compliance Officer

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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