Wonosari Religious Court Determination No. 39 of 2016: Multi-service Ijarah Financing Agreement Dispute

The parties entered into a multi-service ijarah (rental) financing agreement on 10 September 2013 for IDR 15 million. The defendant agreed to repay the sum in monthly instalments of IDR 895,000 for 24 months. After the defendant defaulted on repayments, the plaintiff sent three separate reminder notices, all to no avail. Accordingly, the plaintiff sought a total of IDR 27 million for the following material damages:

  1. principal repayments (IDR 12 million);
  2. profit/service fee (IDR 5 million); and
  3. legal fees (IDR 10 million).

The plaintiff sought an additional IDR 5 million in immaterial damages. The plaintiff also submitted that the 982m2 property leveraged by the defendant be sold or auctioned to cover the defendant's default, pursuant to the terms of the parties' agreement. After the court counselled the parties, however, the plaintiff agreed to withdraw his application.

FirstPreviousPage 1 of of 11NextLast