Document background
The Project Finance Contract is a sophisticated financing agreement used for funding major infrastructure and development projects in Indonesia. It combines international project finance practices with specific requirements under Indonesian law, including compliance with OJK regulations, Investment Law (Law No. 25 of 2007), and relevant sector-specific regulations. This document is typically used when implementing large-scale projects requiring substantial capital investment, limited recourse financing, and complex security arrangements. The contract establishes the relationship between project sponsors, lenders, and other stakeholders while incorporating necessary provisions for Indonesian security creation, foreign investment restrictions, and mandatory governing law requirements. It includes detailed provisions for project implementation, monitoring, risk allocation, and security arrangements, tailored to meet both international banking standards and Indonesian regulatory requirements.
