Debt Collections Handbook Indonesia 2018

  • Indonesien
  • Landbrug,
  • Biler/Transport,

24 Sep 2018

Having drawn from the expertise of Atradius Collections' local offices, the International Debt Collections Handbook explains the different regulations and procedures for debt collections in Indonesia.

Amicable collections

General information

 

Handbook Report Page - Amicable Phase

Payments in Indonesia usually take 30 days on average; however, delays may reach up to 20 days. The payment behaviour of Indonesian companies in recent years has improved and would be somewhere between acceptable and good. During the amicable phase, it is common practice to appoint a lawyer to serve a warning letter to the debtor. The warning letter provides a stern message to the debtor that the creditor is vigilant about the outstanding debt. We can only serve the debtor with a warning letter if we already possess strong preliminary evidence, such as the sale purchase agreement, invoices, packing or shipping list. 

Interest

Indonesian law prescribes no standard payment terms, but the Civil Code regulates late payment interest, which has to be paid by the defaulting party at the request of the non-defaulting party before a court. Two sorts of interest would apply. A conventional interest rate (‘bunga konvensional’) may be agreed by the parties through a contract and apply in case of late payment or if a breach of other obligations occurred. However, if no contractual agreement exists, a 6% per annum legal interest rate (‘bunga moratoir’) is set by law.

Debt collection costs

To date, there is no law or regulation in Indonesia that regulates collection costs in particular or debt collection activities in general. However, within Indonesian law, there is a split between material and immaterial losses. Material losses is direct losses caused by the debt, i.e. the principal debt and/or the cost of shipping. Immaterial losses are indirect losses resulting from the debt. Legal costs will be included as an indirect loss.

The Debt Collections Handbook presents a snapshot of Indonesia's economic situation and covers the following topics:

  • Legal procedures & required documents
  • Lawsuit
  • Insolvency proceedings
  • Expected time frame and outcome

To read more about steps and procedures undertaken in debt collections in Indonesia:

download icon red

Download Debt Collections Handbook Indonesia now!

 

Ansvarsfraskrivelse

Oplysningerne heri er udelukkende informative og må ikke bruges til andre formål. Se venligst den aktuelle police eller den relevante produkt- eller serviceaftale for de gældende betingelser. Intet heri medfører nogen rettighed, forpligtelse eller ansvar på vegne af Atradius, herunder enhver forpligtelse til at foretage due diligence af købere eller på dine vegne. Hvis Atradius foretager en due diligence vedr. en køber, er det for egne forsikringstekniske formål og ikke til fordel for den forsikrede eller nogen anden person. Ydermere må Atradius eller dets tilknyttede virksomheder eller datterselskaber ikke på noget tidspunkt være ansvarlig for direkte, indirekte, konkret dokumenterede tab eller følgetab, der måtte opstå som følge af brugen af udtalelserne i denne information