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Authorization Letter For Transaction for Indonesia

Authorization Letter For Transaction Template for Indonesia

An Authorization Letter for Transaction is a formal legal document used in Indonesia that grants specific authority to an individual or entity to conduct transactions on behalf of another party. The document is governed by Indonesian Civil Code (KUHPerdata) Articles 1792-1819 and must comply with local legal requirements for powers of attorney. It specifies the scope of authority, duration, and conditions under which the attorney may act, while providing legal protection for all parties involved. The document requires proper identification of all parties, clear specification of authorized activities, and may need notarization depending on the transaction type and value.

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What is a Authorization Letter For Transaction?

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.

What sections should be included in a Authorization Letter For Transaction?

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

What sections are optional to include in a Authorization Letter For Transaction?

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

What schedules should be included in a Authorization Letter For Transaction?

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

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Authorization Form

Cost

Free to use
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

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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