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A Grant Letter of Intent is a crucial preliminary document used in Indonesian grant-making processes to formalize the intended provision of funding before executing a final grant agreement. This document type is particularly relevant when organizations need to demonstrate serious intent to provide funding while still conducting due diligence or awaiting final approvals. The Letter of Intent, while non-binding, serves as a roadmap for the eventual grant agreement and typically includes key information such as the proposed grant amount, purpose, conditions precedent, and timeline. Under Indonesian law, particularly considering the Civil Code (KUH Perdata) and relevant grant regulations, this document helps establish clear expectations while maintaining flexibility for both parties. It's commonly used in situations involving institutional funding, government grants, international aid, and charitable giving, where formal documentation of intent is required before proceeding with the full grant agreement.

1. Letter Header: Official letterhead, date, reference number, and formal addressing of recipient

2. Subject Line: Clear indication that this is a Letter of Intent for Grant Funding

3. Recipient Details: Full name and address of the intended grant recipient

4. Opening Statement: Formal introduction and reference to any previous discussions or applications

5. Grant Purpose: Clear statement of the intended purpose and objectives of the grant

6. Grant Amount: Specified amount or range of funding being considered

7. Key Terms: Outline of the fundamental terms and conditions of the proposed grant

8. Conditions Precedent: List of conditions that must be met before the grant can be finalized

9. Timeline: Proposed schedule for finalizing the grant agreement and disbursement

10. Non-Binding Nature: Clear statement that this is a non-binding letter of intent

11. Closing: Formal closing, signature block, and contact information