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Settlement Demand Template for Indonesia

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Key Requirements PROMPT example:

Settlement Demand

"I need a Settlement Demand letter to recover IDR 2.5 billion from a Jakarta-based construction company that has defaulted on three milestone payments, with a deadline for response by March 15, 2025, including the option for installment payments."

Document background
A Settlement Demand document is a critical instrument in Indonesian dispute resolution, used when a party seeks to resolve a conflict without immediate recourse to litigation. This document type is particularly relevant in Indonesia's business environment, where alternative dispute resolution is increasingly favored. The Settlement Demand must be drafted in compliance with Indonesian civil law principles and should include detailed facts, legal basis, quantum of claim, and proposed settlement terms. It serves multiple purposes: formally documenting the claim, demonstrating good faith in seeking resolution, and potentially serving as evidence in subsequent legal proceedings if settlement attempts fail. The document is commonly used in commercial disputes, contractual breaches, debt recovery, and various other civil matters where parties seek an amicable resolution within Indonesia's legal framework.
Suggested Sections

1. Letterhead and Date: Full legal name and address of the demanding party or their legal representative

2. Recipient Details: Full legal name and address of the party receiving the demand

3. Reference Line: Clear subject line identifying the matter as a settlement demand

4. Opening Statement: Formal introduction stating the purpose of the letter and identifying the sender's authority to make the demand

5. Background of Dispute: Concise summary of relevant facts leading to the dispute

6. Legal Basis: Citation of relevant laws and legal grounds for the claim

7. Quantum of Claim: Detailed breakdown of the amount being claimed, including calculations where applicable

8. Settlement Terms: Clear statement of proposed settlement terms including payment amount, method, and timeline

9. Response Timeline: Specific deadline for response and consequences of non-response

10. Without Prejudice Statement: Legal reservation of rights in case settlement is not reached

11. Closing and Signature: Formal closing, signature block, and professional title

Optional Sections

1. Previous Correspondence Reference: Include when there have been previous attempts to resolve the dispute

2. Interest Calculation: Include when claiming interest on outstanding amounts

3. Alternative Settlement Options: Include when willing to propose multiple settlement scenarios

4. Mediation Proposal: Include when suggesting mediation as an alternative to direct settlement

5. Confidentiality Statement: Include when settlement discussions should remain confidential

6. Language Declaration: Include when the letter is bilingual or when specifying the governing language

Suggested Schedules

1. Evidence List: Chronological list of all supporting documents referenced in the demand

2. Payment History: Schedule showing relevant payment history or default timeline

3. Calculation Schedule: Detailed breakdown of claim amounts, interest, and penalties

4. Document Copies: Copies of relevant contracts, invoices, or correspondence

5. Settlement Agreement Draft: Proposed settlement agreement terms in detail

6. Power of Attorney: If the demand is made through a legal representative

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

Relevant legal definitions



































Clauses


























Relevant Industries

Banking and Financial Services

Construction

Manufacturing

Real Estate

Mining and Resources

Technology

Retail and Consumer Goods

Infrastructure

Transportation and Logistics

Healthcare

Energy

Telecommunications

Agriculture

Professional Services

Relevant Teams

Legal

Compliance

Finance

Risk Management

Corporate Affairs

Commercial Operations

Credit Control

Accounts Receivable

Business Development

Executive Management

Relevant Roles

Legal Counsel

Chief Legal Officer

Compliance Officer

Risk Manager

Chief Financial Officer

Claims Manager

Corporate Secretary

Business Development Manager

Contract Manager

Accounts Receivable Manager

Credit Control Manager

Dispute Resolution Specialist

General Manager

Chief Executive Officer

Commercial Director

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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