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Commercial Credit Agreement Template for Indonesia

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Key Requirements PROMPT example:

Commercial Credit Agreement

"I need a Commercial Credit Agreement for a USD 10 million facility between Bank Mandiri as lender and PT Global Manufacturing Indonesia as borrower, with specific provisions for machinery purchase financing and quarterly repayments starting March 2025."

Document background
The Commercial Credit Agreement serves as the primary documentation for commercial lending transactions in Indonesia, establishing the legal relationship between financial institutions and business borrowers. This document is essential when a company seeks substantial financing for business operations, expansion, or specific projects. It must comply with Indonesian banking regulations, including Law No. 7 of 1992 on Banking (as amended), OJK regulations, and the Indonesian Civil Code. The agreement typically includes detailed provisions on facility terms, security arrangements, financial covenants, and reporting requirements, while incorporating specific Indonesian law requirements regarding security registration, stamp duty, and language requirements. It's particularly important for maintaining clear documentation of the parties' obligations and rights in commercial lending relationships within the Indonesian jurisdiction.
Suggested Sections

1. Parties: Identification of the lender(s) and borrower(s) with their complete legal details and registration information

2. Background: Context of the credit facility, purpose, and basic commercial understanding between the parties

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and rules of interpretation

4. The Facility: Detailed terms of the credit facility including amount, purpose, and availability period

5. Interest and Fees: Interest rate calculation, payment periods, default interest, and all applicable fees

6. Drawdown Conditions: Precedent conditions and procedural requirements for utilizing the facility

7. Repayment and Prepayment: Terms for scheduled repayments, voluntary prepayments, and mandatory prepayment events

8. Security: Details of security arrangements, guarantees, and collateral requirements

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Covenants: Positive and negative undertakings of the borrower during the facility period

11. Events of Default: Circumstances constituting default and consequences thereof

12. Changes to Parties: Rules for assignment, transfer, and changes in facility participants

13. Administration: Practical aspects of facility management, notices, and calculations

14. Governing Law and Jurisdiction: Choice of Indonesian law and jurisdiction arrangements

15. Execution: Signature blocks and execution formalities

Optional Sections

1. Syndication Provisions: Required when multiple lenders are involved or syndication is contemplated

2. Currency Provisions: Needed for facilities involving foreign currency or multiple currencies

3. Islamic Banking Provisions: Required when the facility needs to comply with Sharia principles

4. Tax Provisions: Detailed section needed when complex tax arrangements apply or for cross-border facilities

5. Special Drawing Conditions: For facilities with project-specific or milestone-based drawdown requirements

6. Insurance Requirements: Detailed insurance provisions when specific insurance coverage is critical

7. Security Sharing: Required when security is shared with other creditors

8. Subordination Provisions: Needed when there are multiple layers of debt or intercreditor arrangements

Suggested Schedules

1. Facility Summary: Key commercial terms including facility amount, interest rate, and tenure

2. Conditions Precedent: Detailed list of required documents and conditions for facility effectiveness

3. Form of Drawdown Notice: Standard form for requesting facility utilization

4. Repayment Schedule: Detailed amortization schedule if applicable

5. Security Documents: List and copies of all security documents

6. Form of Compliance Certificate: Template for periodic compliance reporting

7. Authorized Signatories: List of persons authorized to act for each party

8. Fee Schedule: Detailed breakdown of all applicable fees

9. Financial Covenants Calculations: Formulas and methods for calculating financial covenants

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


























































Clauses





































Relevant Industries

Banking and Financial Services

Manufacturing

Real Estate and Property Development

Infrastructure and Construction

Mining and Natural Resources

Agriculture and Plantation

Retail and Commerce

Technology and Telecommunications

Transportation and Logistics

Energy and Utilities

Healthcare and Pharmaceuticals

Hospitality and Tourism

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Banking

Credit Analysis

Operations

Business Development

Corporate Secretary Office

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Finance Manager

Legal Counsel

Compliance Officer

Credit Risk Manager

Relationship Manager

Corporate Banking Officer

Finance Manager

Company Secretary

Risk Management Officer

Financial Controller

Credit Analyst

Business Development Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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