Document background
The Project Finance Loan Agreement is a fundamental document used in financing major infrastructure and development projects in Indonesia. It is specifically designed to comply with Indonesian banking laws, including Law No. 7 of 1992 on Banking (as amended) and relevant OJK regulations, while incorporating international project finance principles. This agreement is utilized when financing is provided on a limited or non-recourse basis, where lenders primarily look to the project's cash flows for repayment. The document includes comprehensive provisions for security interests under Indonesian law, project monitoring mechanisms, and account management structures. It addresses specific Indonesian regulatory requirements such as mandatory use of Rupiah for domestic transactions, offshore borrowing regulations, and investment restrictions in certain sectors. The agreement typically forms part of a larger suite of project finance documents and is crucial for both domestic and international financing transactions in Indonesia.
