Document background
A Promissory Note Between Family Members is commonly used in Indonesia when one family member lends money to another and wishes to formalize the arrangement. This document, while maintaining the personal nature of family transactions, provides legal protection under Indonesian law through compliance with the Civil Code (KUHPerdata) and Commercial Code (KUHD). It's particularly useful for substantial loans, family business arrangements, or situations where clear documentation is needed for tax or inheritance purposes. The note includes essential elements such as the loan amount, payment terms, any interest charges, and the identities of the family members involved. While less formal than commercial loan agreements, it still maintains legal enforceability while respecting family relationships.
