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Loan Agreement for Indonesia

Loan Agreement Template for Indonesia

An Indonesian law-governed loan agreement that establishes the terms and conditions for the provision of credit facilities between a lender and borrower. The document incorporates requirements under Indonesian banking regulations and civil law principles, including mandatory provisions under the Indonesian Civil Code (KUHPerdata) and relevant banking regulations. It covers essential elements such as facility terms, interest calculations, repayment obligations, security arrangements (if applicable), and enforcement mechanisms, while ensuring compliance with local currency regulations and financial services authority (OJK) requirements.

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Loan Agreement

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What is a Loan Agreement?

This Loan Agreement template is designed for use in Indonesian jurisdiction credit facilities, incorporating compliance with Indonesian banking regulations, civil law requirements, and financial services authority (OJK) directives. The document is suitable for various lending scenarios, from bilateral corporate loans to syndicated facilities, and can be adapted for secured or unsecured lending arrangements. It includes provisions for mandatory use of Indonesian Rupiah for domestic transactions (unless exempted), appropriate security and enforcement mechanisms under Indonesian law, and necessary provisions for regulatory compliance. The agreement addresses both conventional and Sharia-compliant financing structures where applicable, and includes options for both corporate and individual borrowers.

What sections should be included in a Loan Agreement?

1. Parties: Identifies the lender and borrower with their complete legal names and addresses

2. Background: Sets out the context of the loan and the parties' intention to enter into the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Facility: Details of the loan amount, purpose, and type of facility

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

6. Drawdown: Procedures and requirements for borrowing under the facility

7. Interest: Interest rate, calculation method, and payment provisions

8. Repayment: Terms for repayment of the principal amount

9. Representations and Warranties: Statements of fact made by the borrower about its legal and financial status

10. Covenants: Ongoing obligations of the borrower during the loan term

11. Events of Default: Circumstances that allow the lender to terminate the facility and demand immediate repayment

12. Payments: Payment mechanics, currency, and business day conventions

13. Changes to Parties: Rules regarding assignment and transfer of rights and obligations

14. Notices: How formal communications between parties should be made

15. Governing Law and Jurisdiction: Confirms Indonesian law as governing law and specifies courts having jurisdiction

What sections are optional to include in a Loan Agreement?

1. Security: Required if the loan is secured - details the security structure and enforcement rights

2. Guarantee: Required if there are guarantors - contains guarantee provisions and guarantor obligations

3. Financial Covenants: Required for corporate borrowers - specific financial ratios and tests to be maintained

4. Tax Provisions: Detailed tax provisions required for cross-border loans or complex tax structures

5. Increased Costs: Provisions dealing with regulatory changes affecting the lender's costs

6. Market Disruption: Provisions dealing with circumstances affecting the interest rate market

7. Multiple Lenders: Required for syndicated loans - includes agency and majority lender provisions

8. Currency Provisions: Required for multi-currency facilities or if loan is not in Indonesian Rupiah

What schedules should be included in a Loan Agreement?

1. Form of Drawdown Request: Standard form for the borrower to request a loan drawdown

2. Conditions Precedent Documents: List of required documents and conditions to be satisfied before drawdown

3. Repayment Schedule: If term loan, schedule of repayment dates and amounts

4. Form of Transfer Certificate: Standard form for transferring loan participations

5. Security Documents: Forms of security documents if loan is secured

6. Calculation of Interest Rate: Detailed methodology for calculating interest rate and break costs

7. Form of Compliance Certificate: Template for periodic compliance certification by borrower

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions








































Clauses



































Relevant Industries

Banking & Financial Services

Corporate Finance

Real Estate & Property

Manufacturing

Infrastructure & Construction

Energy & Resources

Agriculture & Plantation

Retail & Consumer

Technology & Communications

Healthcare & Pharmaceuticals

Transportation & Logistics

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Banking

Credit Administration

Business Development

Operations

Corporate Secretariat

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Secretary

Risk Manager

Compliance Officer

Credit Manager

Relationship Manager

Banking Officer

Loan Officer

Corporate Banking Manager

Financial Controller

General Counsel

Business Development Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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