Document background
A Simple Interest Promissory Note is commonly used in Indonesia when one party needs to formally document a loan obligation with straightforward interest calculations. This document is essential for both business and personal lending transactions where parties wish to create a legally enforceable debt instrument. The note must comply with Indonesian Civil Code (KUHPerdata) requirements, Bank Indonesia regulations regarding currency use, and OJK guidelines on lending practices. It specifies the principal amount, interest rate, payment terms, and consequences of default, all denominated in Indonesian Rupiah. The document can be enhanced with security features such as collateral or guarantors, and may require notarization for additional legal protection. It's particularly useful for businesses seeking working capital, individuals borrowing money, or in vendor financing arrangements where a formal record of debt obligation is needed.
