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Loan Contract for Indonesia

Loan Contract Template for Indonesia

This loan contract template is designed for use under Indonesian law, incorporating requirements from the Indonesian Civil Code (KUHPerdata) and Financial Services Authority (OJK) regulations. It provides a comprehensive framework for documenting lending arrangements, whether for corporate or individual borrowing, and includes provisions for interest calculation, repayment terms, security arrangements, and default scenarios. The document ensures compliance with Indonesian banking regulations, consumer protection laws, and anti-money laundering requirements while maintaining flexibility to accommodate various types of loan structures and security arrangements.

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Loan Contract

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What is a Loan Contract?

This Loan Contract template is specifically designed for lending transactions governed by Indonesian law. It serves as a comprehensive legal instrument for documenting financial arrangements between lenders and borrowers, whether in a corporate or individual context. The contract incorporates mandatory provisions required by the Indonesian Civil Code (KUHPerdata) and Financial Services Authority (OJK) regulations, including specific requirements for interest rate disclosure, borrower protections, and security arrangements. It is particularly useful for banks, financial institutions, and businesses engaging in lending activities within Indonesia, providing necessary clauses for both secured and unsecured loans while ensuring regulatory compliance with local financial services laws and anti-money laundering regulations.

What sections should be included in a Loan Contract?

1. Parties: Identification of lender and borrower with complete legal names, addresses, and registration details as required under Indonesian law

2. Background: Context of the loan agreement and relationship between parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the principal amount, currency, and intended use of the loan

5. Interest Rate: Interest rate, calculation method, and payment schedule in compliance with BI regulations

6. Disbursement: Conditions precedent and process for loan disbursement

7. Repayment Terms: Payment schedule, method, and currency of repayment

8. Representations and Warranties: Standard declarations by the borrower regarding their legal and financial status

9. Borrower's Covenants: Positive and negative obligations of the borrower during the loan term

10. Events of Default: Circumstances constituting default and consequences thereof

11. Taxes: Treatment of taxes and duties related to the loan

12. Notices: Communication procedures between parties

13. Governing Law: Confirmation of Indonesian law as governing law

14. Dispute Resolution: Process for resolving disputes, including jurisdiction and venue

What sections are optional to include in a Loan Contract?

1. Security: Details of collateral or security arrangements - required for secured loans only

2. Guarantor Provisions: Terms applicable to guarantors - included when there are third-party guarantors

3. Insurance: Insurance requirements for secured assets - required for loans with collateral

4. Assignment and Transfer: Rights to assign or transfer the loan - included for transferable loans

5. Prepayment Terms: Conditions for early repayment - optional based on loan type

6. Currency Conversion: Terms for foreign currency loans - required for non-IDR loans

7. Change of Circumstances: Provisions for material changes in law or circumstances - recommended for long-term loans

8. Electronic Execution: Provisions for electronic signing - required if electronic execution is contemplated

What schedules should be included in a Loan Contract?

1. Repayment Schedule: Detailed amortization table showing payment dates and amounts

2. Security Details: Comprehensive description of any collateral or security arrangements

3. Conditions Precedent: List of documents and conditions required before disbursement

4. Form of Disbursement Request: Template for requesting loan disbursement

5. Form of Promissory Note: Standard form of promissory note if required

6. KYC Documentation: List of required customer due diligence documents

7. Fees and Charges: Detailed breakdown of all applicable fees and charges

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

Real Estate

Manufacturing

Agriculture

Technology

Infrastructure

Retail

Energy

Mining

Transportation & Logistics

Healthcare

Education

Construction

Small and Medium Enterprises

Relevant Teams

Legal

Finance

Compliance

Risk Management

Treasury

Credit Analysis

Corporate Banking

Relationship Management

Operations

Document Management

Internal Audit

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Compliance Officer

Credit Risk Manager

Loan Officer

Corporate Banker

Treasury Manager

Financial Controller

Legal Director

Company Secretary

Risk Manager

Credit Analyst

Relationship Manager

Corporate Finance 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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