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The Home Loan Contract serves as the primary legal document for residential property financing in Indonesia. It is used when an individual or joint borrowers seek financing from a bank or financial institution to purchase, construct, or renovate residential property. The document must comply with Indonesian Civil Code requirements, banking regulations, and property laws, particularly Law No. 4 of 1996 on Mortgage Rights. It includes essential provisions for loan disbursement, security creation, repayment terms, and borrower obligations, while incorporating consumer protection requirements under OJK regulations. The contract can be adapted for conventional or Shariah-compliant financing structures and may include additional provisions for specific scenarios such as property under construction or co-borrower arrangements.

1. Parties: Identifies the lender (bank/financial institution) and borrower(s), including their complete legal names, addresses, and registration details

2. Background: Outlines the context of the loan agreement, including the borrower's request for financing and the lender's agreement to provide it

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Loan Amount and Purpose: Specifies the principal amount being borrowed and confirms its purpose for home purchase/construction

5. Interest Rate and Calculations: Details the applicable interest rate, whether fixed or variable, and how interest is calculated

6. Term and Repayment: Specifies the loan duration and repayment schedule, including installment amounts and payment methods

7. Security and Mortgage: Details of the property being mortgaged and the creation of security interests under Indonesian law

8. Borrower's Representations and Warranties: Statements of fact and assurances provided by the borrower regarding their capacity and the property

9. Borrower's Covenants: Ongoing obligations of the borrower throughout the loan term

10. Events of Default: Lists circumstances that constitute default and the lender's rights in such events

11. Insurance Requirements: Mandatory insurance coverage for the property and/or borrower

12. Costs and Expenses: Allocation of fees, taxes, and other expenses related to the loan

13. Notices: Procedures for formal communications between parties

14. Governing Law and Jurisdiction: Confirms Indonesian law as governing law and specifies jurisdiction for disputes

15. Execution: Signature blocks and execution requirements