Seeking Legal Assistance for Debt Recovery Based on Signed Business Agreement in Indonesia

1) The agreement can be enforced under Indonesian law, if it has previously been agreed in the contract that dispute resolution is chosen in Indonesia. 2) A default lawsuit must be filed through an Indonesian court. 3) Yes, it begins with a warning letter (summary). 4) The estimated cost of a default lawsuit is IDR 500 million and the term is 2-3 years (unless a settlement is reached). 5) Arranging a settlement fee for this type of case is highly possible.

1) This agreement is enforceable under Indonesian law if it is previously agreed in the contract that dispute resolution will be conducted in Indonesia. 2) A breach of contract lawsuit must be filed through an Indonesian court. 3) Yes, preceded by a warning letter (summary). 4) The estimated cost of a breach of contract lawsuit is IDR 100 million and the term is six months (unless an agreement is reached). 5) This agreement is also enforceable under criminal law if there are elements of a crime, including fraud and embezzlement. 6) Arranging settlement fees for such cases is certainly possible.

Dear client,

Thank you for reaching out. Based on the information you shared, here are our preliminary views:

Enforceability of the Agreement
A Perjanjian Kerjasama signed by both parties is generally enforceable under Indonesian contract law, provided it meets the requirements of Article 1320 of the Civil Code. We will need to review the agreement to confirm its enforceability.

Best Strategy for Recovery
In most cases, the most effective approach is to begin with a thorough legal review followed by a formal demand (somasi). This often encourages settlement. If the counterparty remains unresponsive, we can proceed with negotiation or mediation, and consider litigation if necessary.

Somasi, Negotiation, Mediation, or Litigation
We typically recommend issuing a somasi first, as it formally establishes the breach and strengthens your legal position. Negotiation or mediation can be undertaken in parallel. Litigation is an option if the claim value is substantial and supporting evidence is clear.

Estimated Costs and Timeline
Costs depend on the complexity of the case and whether it proceeds to court. A somasi and negotiation process usually takes 2–6 weeks, while litigation may take 6–12 months at the first-instance level. We can provide a detailed fee proposal after reviewing the documents.

Success-Fee Arrangement
A hybrid fee structure may be available—typically a fixed fee for initial steps (review, somasi, negotiation) combined with a success fee upon recovery. We can discuss the structure once we assess the materials.

We will review them and get back to you with our proposed strategy and quotation.

Dear client,

Thank you for reaching out. Based on the information you shared, here are our preliminary views:

Enforceability of the Agreement
A Perjanjian Kerjasama signed by both parties is generally enforceable under Indonesian contract law, provided it meets the requirements of Article 1320 of the Civil Code. We will need to review the agreement to confirm its enforceability.

Best Strategy for Recovery
In most cases, the most effective approach is to begin with a thorough legal review followed by a formal demand (somasi). This often encourages settlement. If the counterparty remains unresponsive, we can proceed with negotiation or mediation, and consider litigation if necessary.

Somasi, Negotiation, Mediation, or Litigation
We typically recommend issuing a somasi first, as it formally establishes the breach and strengthens your legal position. Negotiation or mediation can be undertaken in parallel. Litigation is an option if the claim value is substantial and supporting evidence is clear.

Estimated Costs and Timeline
Costs depend on the complexity of the case and whether it proceeds to court. A somasi and negotiation process usually takes 2–6 weeks, while litigation may take 6–12 months at the first-instance level. We can provide a detailed fee proposal after reviewing the documents.

Success-Fee Arrangement
A hybrid fee structure may be available—typically a fixed fee for initial steps (review, somasi, negotiation) combined with a success fee upon recovery. We can discuss the structure once we assess the materials.

Dear client, Thank you for reaching out. Based on the information you shared, here are our preliminary views: Enforceability of the Agreement A Perjanjian Kerjasama signed by both parties is generally enforceable under Indonesian contract law, provided it meets the requirements of Article 1320 of the Civil Code. We will need to review the agreement to confirm its enforceability. Best Strategy for Recovery In most cases, the most effective approach is to begin with a thorough legal review followed by a formal demand (somasi). This often encourages settlement. If the counterparty remains unresponsive, we can proceed with negotiation or mediation, and consider litigation if necessary. Somasi, Negotiation, Mediation, or Litigation We typically recommend issuing a somasi first, as it formally establishes the breach and strengthens your legal position. Negotiation or mediation can be undertaken in parallel. Litigation is an option if the claim value is substantial and supporting evidence is clear. Estimated Costs and Timeline Costs depend on the complexity of the case and whether it proceeds to court. A somasi and negotiation process usually takes 2–6 weeks, while litigation may take 6–12 months at the first-instance level. We can provide a detailed fee proposal after reviewing the documents. Success-Fee Arrangement A hybrid fee structure may be available—typically a fixed fee for initial steps (review, somasi, negotiation) combined with a success fee upon recovery. We can discuss the structure once we assess the materials. We will review them and get back to you with our proposed strategy and quotation.

Dear Client,

Thank you for reaching out, we set out below our response for your easy reference

1. Enforceability of the Agreement
Yes, the Perjanjian Kerjasama is legally valid and can be used as strong evidence in any legal process.

2. Best Strategy to Recover the Outstanding Amount
We will first review the amount owed, the counterparty’s company profile, their assets, and whether there is any collateral. This helps us choose the best recovery method.

3. Somasi, Negotiation, Mediation, or Litigation
We will start with a formal demand letter (somasi). This is important to show whether the other party has good intentions to resolve the issue.

4. Estimated Costs
For the somasi and pre-litigation collection, our firm uses a success-fee system. Operational costs and location visits will follow a reimbursement system.

5. Success-Fee Arrangement
Yes, success-fee is possible for the pre-litigation recovery stage.

Thank you in advance.