Document background
The Irrevocable And Unconditional Bank Guarantee is a fundamental financial instrument widely used in Indonesian business transactions to provide security and financial assurance. This document is typically required in situations where one party needs to provide financial security to another, such as in tender submissions, performance guarantees, or advance payment guarantees. Under Indonesian law, particularly as governed by the Civil Code and banking regulations, these guarantees represent a bank's absolute and unconditional commitment to pay a specified sum upon valid demand. The document must comply with Bank Indonesia regulations and OJK requirements, incorporating specific elements such as clear party identification, guarantee amount, validity period, and detailed claim procedures. It serves as a risk mitigation tool across various sectors, providing beneficiaries with immediate access to funds without the need for court intervention or proof of default.
