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A Credit Extension Letter is utilized when an existing credit facility approaches its maturity date and the borrower requires an extension of the credit period. This document is crucial in Indonesian banking practice as it provides a formal mechanism to modify the duration of credit facilities while maintaining compliance with local banking regulations. The letter typically includes essential information such as the extended maturity date, outstanding amount, interest rate, payment terms, and any additional conditions. It must comply with Bank Indonesia regulations and OJK requirements, particularly regarding credit documentation and risk management. The document serves as an addendum to the original credit agreement and requires careful consideration of both the borrower's creditworthiness and the bank's risk appetite. Given Indonesia's specific banking framework, the Credit Extension Letter must incorporate relevant regulatory references and maintain proper documentation standards as required by local banking authorities.

1. Letter Header: Bank's letterhead, date, reference number, and formal addressee details

2. Subject Line: Clear indication that this is a Credit Extension Letter with reference to the original credit facility

3. Original Facility Reference: Details of the existing credit facility including original agreement date and reference number

4. Extension Terms: Specific details of the extension including new maturity date and any modified terms

5. Outstanding Amount: Current outstanding balance and credit limit being extended

6. Interest Rate: Confirmation of applicable interest rate during the extension period

7. Payment Terms: Schedule of payments and payment requirements during the extended period

8. Continuing Security: Confirmation that existing security arrangements remain in effect

9. Conditions Precedent: Any conditions that must be met before the extension becomes effective

10. Acknowledgment: Space for customer acknowledgment and acceptance of the extension terms