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A Credit Agreement is a legally binding contract between a lender and borrower that details the terms of a loan in Indonesia. It spells out key elements like the loan amount, interest rates, repayment schedule, and any collateral requirements under Indonesian Civil Code (KUHPerdata) Article 1754.

These agreements protect both parties by clearly documenting their rights and obligations, following guidelines from Bank Indonesia and the Financial Services Authority (OJK). They're essential for various lending scenarios, from business financing to consumer loans, and must include specific provisions required by Indonesian banking regulations, such as dispute resolution mechanisms and default consequences.

Use a Credit Agreement anytime you're providing or receiving a substantial loan in Indonesia, especially for business financing, property purchases, or significant personal loans. This legally binding document becomes essential when dealing with amounts above IDR 100 million, or when the loan terms extend beyond one year.

Under Indonesian banking regulations, formal Credit Agreements are mandatory for all institutional lending and most commercial loans. They're particularly important for securing collateral, establishing payment schedules, and protecting both parties during major transactions like property development, business expansion, or equipment financing. Having one in place helps prevent disputes and ensures compliance with OJK requirements.

• Credit Purchase Agreement: Used for buying goods with deferred payment terms, common in B2B transactions
• Credit Sale Agreement: Focuses on seller's perspective, outlining terms for extending credit to buyers
• Credit Agreement Contract: Standard lending agreement for business loans and financing
• Credit Support Agreement: Covers additional security or guarantees for larger loans
• Employee Credit Card Agreement: Governs corporate card usage and employee responsibilities

• Banks and Financial Institutions: Act as primary lenders, drafting and enforcing Credit Agreements under OJK regulations
• Corporate Borrowers: Companies seeking business loans, working capital, or investment financing
• Individual Borrowers: Personal loan applicants, particularly for home mortgages or substantial purchases
• Legal Counsel: Review and customize agreement terms, ensuring compliance with Indonesian banking laws
• Guarantors: Third parties providing additional security or personal guarantees for the loan
• Notaries: Authenticate and register agreements, especially for secured loans involving property

• Party Details: Gather complete legal names, addresses, and registration numbers of all parties involved
• Loan Specifics: Document exact loan amount, interest rate, payment schedule, and term length
• Collateral Information: List all assets being used as security, including detailed descriptions and valuations
• Financial Documents: Compile financial statements, tax returns, and business permits from borrower
• Default Terms: Define clear consequences and remedies for payment defaults
• Regulatory Compliance: Ensure agreement follows OJK guidelines and Indonesian banking regulations
• Documentation Review: Use our platform to generate a complete, legally-sound agreement that includes all required elements

• Identification Section: Full legal names, addresses, and registration numbers of all parties
• Loan Details: Principal amount, interest rate, term length, and payment schedule
• Collateral Provisions: Description of security assets and enforcement rights under Indonesian law
• Default Clauses: Specific events of default and remedies as per OJK regulations
• Payment Terms: Detailed repayment structure, prepayment options, and late payment penalties
• Governing Law: Clear statement of Indonesian jurisdiction and applicable banking regulations
• Dispute Resolution: Agreed method for handling conflicts under Indonesian Civil Code
• Signatures: Notarized signature blocks for all parties and witnesses

A Credit Agreement differs significantly from an Intercreditor Agreement in both purpose and scope. While Credit Agreements establish the primary lending relationship between a lender and borrower, Intercreditor Agreements manage relationships between multiple lenders who have claims on the same borrower.

• Primary Focus: Credit Agreements detail loan terms, repayment schedules, and collateral requirements. Intercreditor Agreements establish priority rights and coordination among multiple creditors
• Parties Involved: Credit Agreements are between lender and borrower. Intercreditor Agreements are exclusively between different lenders
• Legal Framework: Credit Agreements follow Indonesian banking regulations and OJK guidelines. Intercreditor Agreements focus on creditor rights under Indonesian security and bankruptcy laws
• Timing: Credit Agreements are created at loan origination. Intercreditor Agreements typically come into play when multiple loans exist or in restructuring scenarios