Debt Collections Handbook Indonesia 2017

Debt Collection Reports

  • Indonesia
  • Agriculture,
  • Automotive/Transport,

5th July 2017

Having drawn from the expertise of the Atradius Collections' local offices, the International Debt Collections Handbook explains the different stages, regulations and procedures for Indonesia.

Amicable phase

General

Handbook Report Page - Amicable Phase

Days sales outstanding (DSO)

Payments in Indonesia usually take 30 days on average; however, delays may reach up to 20 days. The payment behaviour of Indonesian companies in recent years has improved and would be somewhere between acceptable and good. During the amicable phase, it is common practice to appoint a lawyer to serve a warning letter to the debtor. The warning letter provides a stern message to the debtor that the creditor is vigilant about the outstanding debt. We can only serve the debtor with a warning letter if we already possess strong preliminary evidence, such as the sale purchase agreement, invoices, packing / shipping list, etc.

Interest

Indonesian law prescribes no standard payment terms, but the Civil Code regulates late payment interest, which has to be paid by the defaulting party upon request of the nondefaulting party before a court. Two sorts of interest would apply. A conventional interest rate (bunga konvensional) may be agreed by the parties through a contract and apply in case of late payment or if a breach of other obligations occurred. However, if no contractual agreement exists, a 6% per annum legal interest rate (bunga moratoir) is set by law.

Costs

To date, there is no law or regulation in Indonesia that regulates collection costs in particular or debt collection activities in general. However, within Indonesian law, there is a split between material and immaterial losses. Material loss is a direct loss caused by the debt, i.e. the principal debt and / or the cost of shipping. Immaterial losses are indirect losses resulting from the debt. Legal costs will be included as an indirect loss.

The Debt Collections Handbook presents a snapshot of Indonesia's local economic situation and covers the following topics:

  • Legal procedures & required documents
  • Lawsuits
  • Insolvency proceedings
  • Expected timeframe and outcome

To read more about steps and procedures undertaken in the field of debt collection:

Download Debt Collections Handbook Indonesia now!

 

Disclaimer

The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.