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Counter Offer Letter for Indonesia

Counter Offer Letter Template for Indonesia

A Counter Offer Letter under Indonesian law is a formal business document that responds to an initial offer by proposing modified terms while maintaining the potential for agreement. Subject to Indonesian Civil Code (KUHPer) and requiring compliance with Law No. 24 of 2009 regarding language requirements, this document must carefully balance commercial practicality with legal compliance. It serves as a crucial negotiation tool that formally communicates revised terms, conditions, or pricing while maintaining professional business relationships and legal validity in the Indonesian jurisdiction.

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What is a Counter Offer Letter?

The Counter Offer Letter is a essential business document used in Indonesian commercial transactions when the recipient of an initial offer wishes to propose alternative terms while maintaining negotiation momentum. This document must comply with Indonesian Civil Code (KUHPer) and Law No. 24 of 2009, which requires contracts involving Indonesian parties to be in the Indonesian language. Counter Offer Letters are typically used during business negotiations when the original terms require modification but there's still interest in reaching an agreement. They should clearly reference the original offer, explicitly state all proposed changes, and maintain unchanged terms from the original offer. The document serves as a formal response in various commercial contexts, from procurement and service agreements to real estate transactions and commercial partnerships.

What sections should be included in a Counter Offer Letter?

1. Letter Header: Complete business contact information of both parties, date, and reference number

2. Original Offer Reference: Clear reference to the original offer received, including its date and any reference numbers

3. Acknowledgment: Polite acknowledgment of the original offer and appreciation for the business opportunity

4. Counter Offer Statement: Clear statement that this is a counter offer with modified terms

5. Modified Terms: Detailed outline of the specific terms being modified from the original offer

6. Unchanged Terms Confirmation: Confirmation that all other terms from the original offer remain unchanged

7. Validity Period: Specific timeframe for which this counter offer remains valid

8. Closing Statement: Professional closing with clear next steps

9. Signature Block: Space for signature, name, and title of the authorized representative

What sections are optional to include in a Counter Offer Letter?

1. Summary Table of Changes: A table format comparing original terms with counter-offered terms, useful for complex modifications

2. Legal Compliance Statement: Statement regarding compliance with Indonesian law, particularly when dealing with international parties

3. Bahasa Indonesia Translation: Required when one party is Indonesian, as per Law No. 24 of 2009

4. Conditions Precedent: Any specific conditions that must be met before the counter offer can be accepted

5. Background Context: Additional context about why modifications are necessary, included when substantial changes are proposed

What schedules should be included in a Counter Offer Letter?

1. Schedule A - Revised Pricing Details: Detailed breakdown of modified pricing terms, if price changes are part of the counter offer

2. Schedule B - Modified Specifications: Technical specifications or scope modifications, if applicable

3. Schedule C - Comparative Terms Table: Side-by-side comparison of original and counter-offered terms

4. Appendix 1 - Supporting Documentation: Any relevant supporting documents justifying the modified terms

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

Rejection Letter

Cost

Free to use

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