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Authorization Letter For Collection Of Payment for Indonesia

Authorization Letter For Collection Of Payment Template for Indonesia

An Authorization Letter for Collection of Payment is a formal document governed by Indonesian law that grants specific authority to a designated individual or entity to collect payment on behalf of another party. The document is structured according to Indonesian Civil Code requirements and must comply with local banking regulations and financial transaction laws. It serves as a legal instrument that details the scope of authority, payment specifications, and temporal validity while incorporating necessary safeguards to protect all parties' interests in the transaction.

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What is a Authorization Letter For Collection Of Payment?

The Authorization Letter for Collection of Payment is essential in Indonesian business operations where direct payment collection by the principal party is not feasible or practical. This document, governed by Indonesian law including the Civil Code (Kitab Undang-undang Hukum Perdata) and relevant banking regulations, enables businesses and individuals to delegate payment collection authority while maintaining legal compliance and financial security. It is commonly used in situations involving remote transactions, multiple business locations, or when the principal party is unavailable. The letter must include specific details about all parties involved, payment information, and the scope and duration of the authorization to ensure legal validity and protect all parties' interests.

What sections should be included in a Authorization Letter For Collection Of Payment?

1. Letter Header: Date, reference number, and formal letterhead including the authorizer's complete details

2. Recipient Details: Full name and address of the entity/institution to whom the authorization letter is being presented

3. Subject Line: Clear indication that this is an Authorization Letter for Collection of Payment

4. Authorizer Details: Complete information about the person/entity giving the authorization, including legal name, ID number, and address

5. Authorized Person Details: Complete information about the person being authorized to collect the payment, including legal name, ID number, and address

6. Payment Details: Specific details about the payment to be collected, including amount, invoice reference, and source

7. Scope of Authorization: Clear description of the powers being granted, including any limitations or conditions

8. Duration of Authority: Validity period of the authorization, including start and end dates if applicable

9. Legal Declaration: Statement confirming the legal binding nature of the authorization

10. Signature Block: Space for authorizer's signature, name, date, and company stamp if applicable

What sections are optional to include in a Authorization Letter For Collection Of Payment?

1. Witness Details: Required when the authorization involves significant amounts or when demanded by the receiving institution

2. Special Instructions: Any specific procedures or requirements for the payment collection process

3. Revocation Clause: Terms under which the authorization can be revoked before the end date

4. Language Declaration: Required when the letter is bilingual or when an English version is provided alongside the Indonesian version

What schedules should be included in a Authorization Letter For Collection Of Payment?

1. Identity Documents: Copies of valid ID cards/documents of both the authorizer and authorized person

2. Original Invoice: Copy of the invoice or payment document related to the collection

3. Corporate Authorization: If the authorizer represents a company, documents proving their authority to issue such authorization

4. Previous Correspondence: Any relevant communication regarding the payment that needs to be collected

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

Sector

Banking

Cost

Free to use
Relevant legal definitions




















Clauses


















Relevant Industries

Banking and Financial Services

Manufacturing

Retail

Construction

Professional Services

Healthcare

Education

Real Estate

Import/Export

Transportation and Logistics

General Commerce

Technology Services

Relevant Teams

Finance

Legal

Administration

Treasury

Accounts Receivable

Operations

Compliance

Credit Control

Corporate Secretariat

Relevant Roles

Finance Manager

Accounts Receivable Specialist

Treasury Manager

Financial Controller

Legal Counsel

Company Secretary

Administrative Officer

Collections Manager

Credit Controller

Business Development Manager

Operations Manager

Compliance Officer

General Manager

Managing Director

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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