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The Installment Agreement is a crucial document in Indonesian commercial transactions, used when goods or services are purchased through structured periodic payments rather than a single lump sum. This document is essential in both business-to-business and business-to-consumer contexts, particularly regulated under Indonesian civil law and OJK regulations. The agreement typically includes detailed payment schedules, interest calculations, and security arrangements, ensuring compliance with Indonesian consumer protection laws and financial regulations. It's commonly used for high-value purchases in various sectors, from automotive to industrial equipment, and must incorporate specific Indonesian legal requirements regarding contract formation, security interests, and enforcement mechanisms. The document becomes particularly important in cases of default or dispute, as it serves as the primary reference for the parties' rights and obligations under Indonesian law.

1. Parties: Identification and details of the seller/creditor and buyer/debtor, including their legal capacity to enter into the agreement

2. Background: Context of the agreement, including the purpose of the installment arrangement and brief description of the subject matter

3. Definitions: Definitions of key terms used throughout the agreement

4. Subject Matter: Detailed description of the goods/services being sold under installment

5. Purchase Price and Payment Terms: Total purchase price, down payment, number of installments, installment amounts, and payment schedule

6. Payment Method: Acceptable methods of payment and payment processing details

7. Interest and Late Payment Charges: Interest rate, calculation method, and penalties for late payments

8. Delivery and Transfer of Title: Terms regarding delivery of goods and when title passes to the buyer

9. Representations and Warranties: Statements of fact and promises made by both parties

10. Default and Remedies: Events constituting default and available remedies for both parties

11. Termination: Circumstances under which the agreement can be terminated and consequences

12. Governing Law and Dispute Resolution: Confirmation of Indonesian law as governing law and dispute resolution mechanisms

13. Notices: How formal communications between parties should be made and delivered

14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments