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A Debt Financing Agreement is a crucial document used when a company or entity seeks to obtain debt financing from banks or financial institutions in Indonesia. This agreement is essential for both domestic and international financing transactions, subject to Indonesian law and regulatory oversight by the OJK (Financial Services Authority). The document comprehensively covers all aspects of the lending relationship, including facility terms, security arrangements, representations and warranties, covenants, and events of default. It must comply with Indonesian Civil Code requirements, banking regulations, and security laws, particularly Law No. 7 of 1992 on Banking (as amended) and related regulations. The agreement is typically used for corporate loans, project financing, working capital facilities, or investment financing, and can be adapted for various financing structures while maintaining compliance with Indonesian regulatory requirements.

1. Parties: Identification of the lender(s) and borrower(s), including their legal status and addresses

2. Background: Context of the financing arrangement, purpose of the loan, and any relevant pre-existing relationships

3. Definitions: Definitions of key terms used throughout the agreement, including financial terms and Indonesian legal concepts

4. Facility Amount and Purpose: Details of the loan amount, currency, and specified purpose of the financing

5. Conditions Precedent: Conditions that must be satisfied before the loan can be disbursed

6. Disbursement Mechanism: Process and requirements for drawing down the loan

7. Interest and Fees: Interest rate, calculation method, payment dates, and all applicable fees

8. Repayment Terms: Schedule and method of repayment, including any grace period and prepayment provisions

9. Security: Description of collateral and security arrangements

10. Representations and Warranties: Standard and specific declarations by the borrower about their legal and financial status

11. Covenants: Positive and negative obligations of the borrower during the loan term

12. Events of Default: Circumstances constituting default and consequences

13. Taxes and Expenses: Allocation of tax liabilities and transaction costs

14. Governing Law and Jurisdiction: Confirmation of Indonesian law application and dispute resolution provisions

15. Notices: Communication procedures between parties

16. Miscellaneous: Standard boilerplate provisions including severability, amendments, and entire agreement