The Authorization Letter for Transaction serves as a crucial legal instrument in Indonesian business practice, enabling individuals or organizations to delegate authority for specific transactions. This document type is essential when the principal party cannot be physically present or wishes to authorize another party to act on their behalf in business dealings. It must comply with Indonesian Civil Code requirements and often requires proper notarization to be legally valid. The letter typically specifies the scope of authority, duration, and any limitations on the authorized party's powers. It's commonly used in various business contexts, from simple bank transactions to complex commercial dealings, and can be either general or specific in nature depending on the requirements of the situation. The document provides legal certainty and protection for all parties involved while facilitating efficient business operations.
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1. Header Information: Date, reference number, and title of the document
2. Authorizer Details: Full name, ID number (KTP/Passport), address, and other relevant identification details of the person granting authority
3. Attorney Details: Full name, ID number (KTP/Passport), address, and other relevant identification details of the person receiving authority
4. Scope of Authority: Clear and specific description of the transaction(s) or actions being authorized
5. Duration of Authority: Specific timeframe for which the authorization is valid
6. Declaration of Sound Mind: Statement that the authorizer is acting of their own free will and in sound mind
7. Signature Block: Space for signatures of authorizer, attorney, and witnesses
1. Special Conditions: Any specific conditions or limitations on the authority granted, used when there are particular restrictions or requirements
2. Revocation Clause: Specific terms for revoking the authorization, included when the authorizer wants to specify conditions for termination
3. Substitution Rights: Clause allowing or prohibiting the attorney to delegate authority to another person, included when relevant to the transaction
4. Indemnification Clause: Protection clause for the authorizer, used in high-value or high-risk transactions
5. Language Declaration: Statement about the governing language if the letter is bilingual, used when document is in multiple languages
1. Copy of Authorizer's ID: Attached photocopy of authorizer's valid identification document
2. Copy of Attorney's ID: Attached photocopy of attorney's valid identification document
3. Transaction Details: Specific details of the transaction(s) being authorized, if too detailed to include in main letter
4. Corporate Documents: If authorizer represents a company, relevant company documents proving authority to delegate
Authors
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Real Estate
Commercial Trade
Manufacturing
Import/Export
Retail
Professional Services
Construction
Agriculture
Healthcare
Education
Technology
Telecommunications
Transportation and Logistics
Relevant Teams
Legal
Finance
Operations
Administration
Compliance
Risk Management
Corporate Affairs
Procurement
Sales
Business Development
Treasury
Relevant Roles
Chief Executive Officer
Managing Director
Finance Manager
Legal Counsel
Company Secretary
Operations Manager
Procurement Officer
Sales Director
Business Development Manager
Administrative Officer
Compliance Officer
Risk Manager
Treasury Manager
Branch Manager
Department Head
Regional Manager
General Manager
Corporate Affairs Manager
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