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The Dealership Termination Letter is a crucial document used when a company needs to formally end its business relationship with an authorized dealer in Indonesia. It serves as the official notification of termination and must comply with both the original dealership agreement terms and Indonesian law, particularly the Minister of Trade Regulation No. 11/M-DAG/PER/3/2006 and the Indonesian Civil Code. The document typically includes details about the termination grounds, effective date, transition arrangements, and both parties' obligations. It's essential when there's a need to end a dealership relationship due to various reasons such as performance issues, strategic restructuring, or mutual agreement. The letter must be carefully drafted to protect both parties' interests while ensuring compliance with local regulations regarding distribution agreements and business relationships.

1. Letter Header and Date: Company letterhead, date, and reference number if applicable

2. Recipient Details: Full name and address of the dealer, including any reference numbers

3. Subject Line: Clear indication that this is a termination notice for the dealership agreement

4. Agreement Reference: Specific reference to the original dealership agreement including its date and any amendments

5. Termination Statement: Clear and unambiguous statement of termination, including the effective date and reference to relevant termination clause

6. Reason for Termination: Brief explanation of the grounds for termination, if applicable

7. Immediate Actions Required: List of immediate actions the dealer must take, such as ceasing use of trademarks

8. Return of Property: Instructions regarding return of company property, marketing materials, and confidential information

9. Outstanding Payments: Statement regarding any outstanding financial matters

10. Closing Statement: Professional closing including any requirements for acknowledgment

11. Signature Block: Authorized signatory details and signature