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Corporate Promissory Note Template for Indonesia

A Corporate Promissory Note under Indonesian law is a formal written financial instrument containing an unconditional promise by a corporate entity to pay a specified sum of money to a designated payee at a predetermined date or on demand. The document is governed by the Indonesian Commercial Code (KUHD) and must comply with specific formal requirements under Indonesian law, including proper corporate authorization and execution. It serves as a legally binding debt instrument that can be used for various corporate financing purposes and may include provisions for interest, security, and transfer rights.

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What is a Corporate Promissory Note?

The Corporate Promissory Note is a vital financial instrument in Indonesian business practice, commonly used for corporate financing, debt documentation, and commercial transactions. It must comply with the Indonesian Commercial Code (KUHD) and relevant Financial Services Authority (OJK) regulations, while also adhering to corporate governance requirements under Indonesian Company Law. This document is particularly useful when a company needs to formally acknowledge a debt obligation, secure short-term financing, or structure payment obligations in commercial transactions. The note typically includes essential elements such as payment terms, interest provisions, and corporate authorization details, making it a versatile instrument for various business purposes.

What sections should be included in a Corporate Promissory Note?

1. Header Information: Document title, note number, date of issuance, and corporate details of issuer

2. Promise to Pay: Unconditional promise to pay a specified sum of money, including the currency and amount both in numbers and words

3. Payment Terms: Maturity date, interest rate (if applicable), place of payment, and payment method

4. Payee Details: Full name and address of the payee (beneficiary)

5. Corporate Authorization: Statement confirming corporate authority to issue the note and details of authorizing resolution

6. Governing Law: Specification of Indonesian law as governing law and jurisdiction clause

7. Execution Block: Signature block with corporate seal, authorized signatory details, and witness provisions

What sections are optional to include in a Corporate Promissory Note?

1. Security Provisions: Include when the note is secured by collateral or guarantees

2. Events of Default: Include when specific default triggers and consequences need to be defined

3. Transfer Provisions: Include when specific restrictions or conditions on transfer need to be specified

4. Tax Provisions: Include when specific tax treatments or withholding requirements need to be addressed

5. Notice Provisions: Include when formal notice requirements need to be specified

What schedules should be included in a Corporate Promissory Note?

1. Payment Schedule: If installment payments are involved, detailed schedule of payment dates and amounts

2. Corporate Authorization Documents: Copies of board resolutions, power of attorney, or other corporate authorizations

3. Security Documents: If secured, details of collateral or guarantee agreements

4. Specimen Signatures: Authenticated signatures of authorized signatories

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Promissory Note

Sector

Banking

Cost

Free to use

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