IS THERE ANY EXPIRATION FOR A CLAIM OF RECEIVABLE UNDER INDONESIAN LAW?

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Article 1967 of Indonesian Civil Code states that all legal claims, either business as well as individual, shall expire after thirty years, and the individual who invokes the expiration shall not be required to submit any title, and an individual cannot object to this expiration if such is based upon bad faith.

Based on the provision as mentioned above, a person may be relieved from any claim or lawsuit, if by the lapse of time of thirty years, any person is freed from all claim or lawsuit.  Means, if a person is being sued to pay any debt (make payment for receivable) which already elapsed a thirty years period of time, then the person as the defendant may object such claim or lawsuit by using a ground that during the thirty years period the defendant had never received such claim or lawsuit. 1

Note: “1 Prof.Subekti, Pokok-Pokok Hukum Perdata, page 186.

A relief from any claim for debt (receivable) as mentioned above is generally applicable for all claim after the elapse of time of thirty years, however, the law also specifically stipulated on some claim that already being expired by the lapse of short time, such as:

  1. The following claims are expired by the lapse of one year period (Article 1968 of Indonesian Civil Code):
    1. Legal claims of experts and teachers in art and science with respect to the courses that they teach for a month or a shorter time period;
    2. Legal claims of hoteliers and restaurateurs, with respect to providing board and lodging;
    3. Legal claims of laborers whose wages are required to be paid every time within three months, with respect to the payment of their wages, including the amount of increase of such wages.
  2. All of these are expired by the lapse of two years period (Article 1969 jo. Article 1970 of the Indonesian Civil Code):
    1. The legal claims of doctors, healing masters and pharmacists, with respect to their visits, healing services and medicine;
    2. Claims of bailiff, with respect to their wages for the notification of deeds and the implementation of their assigned duties;
    3. Claims of caretakers of boarding schools, with respect to the tuition and boarding charges of the students, and claims of other teachers in respect of their salaries;
    4. Claims of laborers, with the exception of those mentioned in Article 1968, with respect to payment of their wages, including a raise in such wages pursuant to article 1602q;
    5. The legal claims of attorneys for the payment in respect of their services, of prosecutors for payment of their advances and charges, shall expire after two years, effective as the date upon which the decision is issued upon the lawsuit, or the parties have reached some settlement, or the authorization granted to the attorneys has been revoked.  With respect to unresolved cases, no compensation may be claimed for advances made and services rendered, which have been pending for more than ten years;
    6. The legal claim of notaries for the payment of their advances and charges incurred shall also expire after a period of two years, effective as of the date on which the deeds are drawn up.
  3. All of these are expired by the lapse of five years period (Article 1971 of the Indonesian Civil Code):
    1. Legal claims of carpenters, bricklayers and other foremen, for the payment of materials and wages;
    2. Legal claims of shopkeepers for the payment of the delivered goods, to the extent that these legal claims are relevant to their activities and deliveries which are not related to the profession of the debtor.
  4. All of these are expired by the lapse of five years period (Article 1975 of the Indonesian Civil Code):
    1. The interest payments from lifelong interests or annuities; (Article 1770 of Indonesian Civil Code);
    2. Annual interest for the support of one’s livelihood;
    3. Rent in respect of houses and property;
    4. The interest on loans, and in general, anything that is payable annually, or for shorter stipulated terms.

Furthermore, the prescribed period of limitations shall not apply to the following (Article 1990 of the Indonesian Civil Code):

  1. In relation to a debt which is subject to a condition, to the extent that such condition has not been satisfied
  2. In relation to a lawsuit for indemnification of sales, to the extent the suit has not yet decided to handover the related goods to any other person;
  3. In relation to a debt which matures on a stipulated date, to the extent that the date has not yet arrived.

How can SMART Legal Consulting help you?

SMART Legal Consulting is a corporate legal services provider with experience and capability to assist Clients in the resolution of their legal problems. We help our Clients with competency to ensuring that Claim of Receivable of the Clients carried out under the applicable law in Indonesia.

Contact SMART for more details about our services, or schedule meeting with us at:
E: info@smartcolaw.com
H: +62821-1234-1235
O: +6221-8067492

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