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Letter Of Authority Template for Indonesia

A Letter of Authority under Indonesian law is a formal legal document that delegates specific powers from one party (the grantor) to another (the attorney) to act on their behalf. Governed by the Indonesian Civil Code (KUHPerdata) and related regulations, this document must be drafted in Indonesian language and typically requires proper notarization for certain matters. It specifies the scope of authority granted, duration of the power, and any limitations on the attorney's actions. The document can be used for various purposes, from simple administrative tasks to complex legal or business transactions, and must comply with Indonesian legal requirements regarding format, content, and execution.

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What is a Letter Of Authority?

Letters of Authority (Surat Kuasa) are essential legal instruments in Indonesian business and personal matters, used to delegate specific powers from one party to another. These documents are particularly crucial when the grantor cannot personally handle certain matters and needs to authorize someone else to act on their behalf. The legal framework is primarily governed by the Indonesian Civil Code (KUHPerdata) Articles 1792-1819, which sets out the basic requirements for validity. Letters of Authority can be used for various purposes, including but not limited to: representing companies in official meetings, handling banking transactions, managing property matters, or dealing with government authorities. The document must be drafted in Indonesian language as per Law No. 24 of 2009, and depending on the importance and nature of the authority granted, may require notarization under Law No. 30 of 2004 on Notary Position. Understanding the correct usage and formal requirements of Letters of Authority is crucial for ensuring their legal validity and effectiveness in Indonesian jurisdiction.

What sections should be included in a Letter Of Authority?

1. Place and Date: Location and date of the letter's execution

2. Title: Clear identification as a Letter of Authority (Surat Kuasa)

3. Grantor Details: Full name, ID number, address, and position (if representing a company) of the person granting authority

4. Attorney Details: Full name, ID number, address, and position (if relevant) of the person receiving authority

5. Scope of Authority: Specific and detailed description of the powers being granted

6. Duration: Time period for which the authority is valid

7. Signature Block: Space for signatures of both grantor and attorney, with names clearly typed below

What sections are optional to include in a Letter Of Authority?

1. Recitals: Background information explaining why the authority is being granted - used when context is important for interpretation

2. Substitution Rights: Clause indicating whether the attorney has the right to delegate the authority to another person - used when such flexibility might be needed

3. Governing Law: Specific mention of applicable law - used in cases involving international elements

4. Witness Section: Space for witness details and signatures - used when additional verification is required

5. Company Details: Corporate information and authority - used when the grantor is acting on behalf of a company

6. Revocation Terms: Specific conditions under which the authority can be revoked - used in complex or long-term arrangements

What schedules should be included in a Letter Of Authority?

1. Identity Documents: Copies of ID cards or passports of both parties

2. Corporate Documents: Company registration and authority documents if involving corporate parties

3. Specific Instructions: Detailed procedures or instructions related to the granted authority

4. Supporting Documents: Any relevant documents related to the matter for which authority is being granted

Authors

Alex Denne

Advisor @ 蜜桃传媒AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Document Type

Sector

Banking

Cost

Free to use

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