Document background
The Bond Promissory Note is a crucial financial instrument in Indonesian business practice, typically used when a formal debt obligation needs to be established between parties with specific repayment terms and conditions. This document type combines elements of both bonds and promissory notes, making it particularly suitable for corporate borrowing, structured financing, and commercial lending transactions. Under Indonesian law, the Bond Promissory Note must comply with specific requirements set forth in the Civil Code (KUH Perdata) and OJK regulations, including proper execution, stamp duty requirements, and witness attestations. It provides a robust legal framework for debt obligations while maintaining flexibility in terms of transferability and enforcement. The document is commonly used in both private and commercial contexts, particularly when the debt arrangement requires more formal documentation than a simple promissory note but may not warrant a full bond issuance.
