Checklist for Debt Collection in Indonesia

30 years (ordinary term for commercial and civil debts, special regimes apply).

Demand letter(s), lawsuit , and acknowledgment of debt.

Strongly recommended. In some cases the judge could dismiss lawsuit filed by creditor due to the absence of prior demand letter to the debtor or defendant.

The District Court where the defendant or debtor is domiciled, unless otherwise agreed contractually (i.e. Alternative Dispute Resolution).

Require Power of Attorney to issue demand letter(s) on behalf of the creditor and represent the creditor inside the court. If the power of attorney is made outside Indonesia, it must be notarized by a public notary and apostilled or legalized (if non-Hague member) by the competent authority. The PoA must be made in the Indonesian language or at least in bilingual form.

Contracts,  invoices, statements of account, demand letter(s), any acknowledgement of debt, useful written correspondences, power of attorney, claim/lawsuit letter.

Up to 6 months at the first degree court (District Court).

Small Claim Court (Gugatan Sederhana), applicable for material claims up to IDR 500,000,000 (USD 30,000), with a maximum trial duration of 25 working days, provided that there is only 1 (one) debtor and creditor in the dispute.                                                                              

Out-of-court costs to be paid by the creditor or plaintiff.

6% per annum.