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The Private Mortgage Contract serves as a crucial legal instrument in Indonesian property financing, designed for situations where private parties enter into a mortgage arrangement secured by real property. This document is essential when individuals or private institutions provide property-backed loans outside of traditional banking channels, while still maintaining compliance with Indonesian mortgage laws and regulations. The agreement must conform to Law No. 4/1996 on Mortgages (Hak Tanggungan) and related Indonesian property laws, requiring registration with appropriate authorities and execution before a Land Deed Official (PPAT). It includes comprehensive details about the loan terms, property security, parties' obligations, and enforcement mechanisms, providing legal protection for both lender and borrower while ensuring the arrangement meets all regulatory requirements for a valid mortgage in Indonesia.

1. Parties: Identification of the lender and borrower, including complete legal names, addresses, and identification numbers

2. Background: Context of the mortgage agreement, including the purpose of the loan and brief description of the property

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

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

5. Interest Rate and Calculations: Details of interest rate, calculation method, and payment periods

6. Repayment Terms: Schedule of repayments, payment methods, and prepayment provisions

7. Security Details: Description of the mortgaged property and security interest being created

8. Representations and Warranties: Statements of fact and assurances from the borrower regarding their capacity and the property

9. Borrower's Covenants: Ongoing obligations of the borrower, including property maintenance and insurance requirements

10. Events of Default: Circumstances that constitute default and their consequences

11. Enforcement Rights: Lender's rights and remedies in case of default, including foreclosure procedures

12. Costs and Expenses: Allocation of legal fees, registration costs, and other expenses

13. Notices: Methods and addresses for formal communications between parties

14. Governing Law and Jurisdiction: Confirmation of Indonesian law as governing law and jurisdiction for disputes

15. Execution: Signature blocks and execution requirements