AGREEMENT ON THE AMOUNT OF INTEREST IN CASES OF MONEY DEBT

In the legal relationship between debts and creditors, where the debtor has regularly paid interest of 4 percent per month to the creditor for a long time, we can conclude that between the debtor and the creditor, an agreement has been reached regarding the interest amount that the debtor must pay to the creditor. Hence, there has been an agreement regarding the amount of interest based on the parties’ agreement. However, because the creditor in the petitum of the lawsuit only demands an interest of 3.6% per month, the judge should grant the amount of interest according to the petitum of the plaintiff’s lawsuit.

• Supreme Court Decision (Under Review): No. 167 PK/Pdt.1991, 14 April 1994.

Source: Compilation of Supreme Court Abstract Legal Decisions on the Law of Debts and Receivables, By: Ali Boediarto, S.H. Publisher: Indonesian Judges Association, Page 246.

Best regards,

Fredrik J. Pinakunary