Debt Repayment Commitment Letter: Definition, Examples, and How to Create One

A debt repayment commitment letter is an important document created to ensure credit relationships are clear and legally binding. This statement letter serves as proof of repayment commitment and can help prevent disputes in the future.

In Indonesia, the provisions regarding debt repayment commitment letters are regulated in the Commercial Code (KUHD) Articles 174–177. This article provides a guide on how to draft one, along with practical examples.

What Is a Debt Repayment Commitment Letter?

A debt repayment commitment letter is a written document stating that an individual or party is committed to repaying their debt. It serves as official legal evidence binding both the debtor and the creditor.

This type of letter is often used in personal loans, business transactions, or official agreements. It helps establish legal certainty and minimizes the risk of disputes between parties in the future.

Components of a Debt Repayment Commitment Letter

Drafting a debt repayment commitment letter should not be taken lightly. It must contain complete information to be legally valid and enforceable. Generally, the components include:

• Title of the statement letter, written in uppercase.

• Debtor’s identity.

• Creditor’s identity.

• Total amount of debt with currency.

• Statement of repayment commitment from the debtor.

• Repayment period or deadline.

• Additional terms and conditions, if any.

• Signature and date of issuance.

• Witnesses and stamp duty, if necessary.

How to Create a Debt Repayment Commitment Letter

A proper debt repayment commitment letter must be clear, formal, and contain complete details to serve as valid legal proof. It should use straightforward language and structured formatting for easy understanding.

Here are the steps to create one:

• Include full name, address, ID number, and occupation of both parties.

• Clearly state the debtor’s willingness to repay the loan according to the agreement.

• Specify the loan amount, currency, and installment schedule.

• Mention a repayment deadline to make it binding.

• Optionally, include consequences if repayment is delayed.

• Add the debtor’s signature, issuance date, Rp10,000 stamp duty for stronger legal standing, and witnesses (if any).

Examples of Debt Repayment Commitment Letters

Here are several example formats you can adapt to your needs:

1. Example of a Debt Repayment Commitment Letter Without Collateral

DEBT REPAYMENT COMMITMENT LETTER

I, the undersigned below,
Name: Budi Firmansyah
ID: 1234567890
Address: Jl. Soekarno-Hatta No.101, Bekasi, West Java

Hereby state to,
Name: Fauzi Ahmad
ID: 2345678901
Address: Jl. Pangeran Diponegoro No.133, Bogor, West Java

That I am willing to repay my total debt to Mr. Fauzi Ahmad. The amount owed is Rp100,000,000, which I will fully repay no later than December 15, 2025.

If I fail to repay the debt by the deadline, I accept the consequences, including being reported to the authorities and facing legal action.

This commitment letter is made truthfully, consciously, and without coercion from any party.

Bekasi, September 10, 2025
The undersigned,
(Signature & Rp10,000 Stamp)
Budi Firmansyah

2. Example of a Debt Repayment Commitment Letter With Collateral

DEBT REPAYMENT COMMITMENT LETTER

I, the undersigned below,
Name: Budi Firmansyah
ID: 1234567890
Occupation: Textile Entrepreneur
Address: Jl. Soekarno-Hatta No.101, Bekasi, West Java

Hereby declare that on September 10, 2025, I borrowed Rp100,000,000 from Mr. Fauzi Ahmad and agree to repay it within 6 months.

As collateral, I pledge one motorcycle under my name, Budi Firmansyah. If I cannot repay the debt on time, I request an extension of 30 days.

If I still fail to repay after the extension, Mr. Fauzi Ahmad has the right to seize, own, or sell the motorcycle to cover the debt.

This statement is made fully aware and without pressure from any party.

Bekasi, September 10, 2025
The undersigned,
(Signature & Rp10,000 Stamp)
Budi Firmansyah

3. Example of a Debt Repayment Commitment Letter With Installments

DEBT REPAYMENT COMMITMENT LETTER

I, the undersigned below,
Name: Budi Firmansyah
ID: 1234567890
Occupation: Textile Entrepreneur
Address: Jl. Soekarno-Hatta No.101, Bekasi, West Java

Hereby declare that I have leased a shop owned by CV. Toko Sejahtera under a fixed-term rental agreement.

I commit to paying the lease in installments of Rp6,000,000 per month, due on the 11th of each month, for 5 years.

If I fail to pay on schedule, I accept the consequences set by CV. Toko Sejahtera, including legal action if necessary.

This statement is made consciously and without coercion to serve as future reference.

Jakarta, September 10, 2025
The undersigned,
(Signature & Rp10,000 Stamp)
Budi Firmansyah

That’s an overview of debt repayment commitment letters—from the definition and components to sample formats commonly used.

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