Document background
The Grant LOI is a crucial preliminary document used in Indonesian grant-making processes when parties wish to formalize their intentions before entering into a definitive grant agreement. It is particularly relevant when significant due diligence is required or when dealing with substantial grant amounts. The document serves as a roadmap for the grant-making process, outlining key terms while maintaining flexibility. Under Indonesian law, special attention must be paid to regulatory compliance, especially when involving foreign grantors (under Government Regulation No. 10 of 2011) or when grants require specific governmental approvals. While the Grant LOI is generally non-binding, it helps establish clear expectations and timeline for the formal agreement, and typically includes binding provisions on confidentiality and exclusivity.
