A power of attorney is a written authority by which one person (the principal, or grantor) appoints another (the attorney, or agent) to act on the principal's behalf. In Indonesia it is known as a surat kuasa.
Types
A general power of attorney authorises the agent to act in all matters, typically limited to acts of management. A special power of attorney authorises specific acts, such as selling a particular property or representing the principal in a particular lawsuit. Indonesian courts require a special power of attorney for litigation, identifying the parties and the subject of the dispute.
In the Indonesian Civil Code
The agency agreement (pemberian kuasa) is regulated by Articles 1792 to 1819 of the Civil Code. Under Article 1796, a power expressed in general terms covers only acts of management; acts of ownership, such as transferring or encumbering property, require express authority. Under Article 1813, a power of attorney ends upon revocation, resignation of the agent, or the death, guardianship or bankruptcy of either party.
Irrevocable Powers
Commercial transactions sometimes use irrevocable powers of attorney, under which the parties waive the grounds for termination in Article 1813. These are generally accepted where they form part of a principal agreement, but irrevocable powers used to transfer land outside the formal procedure have been restricted by land regulations.
Lasting Powers in England
In England and Wales, a lasting power of attorney under the Mental Capacity Act 2005 allows a person to appoint attorneys for property and financial affairs or for health and welfare, to act if the person later loses mental capacity.