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Financial Agreement for Indonesia

Financial Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes and regulates financial arrangements between parties. The agreement complies with Indonesian Civil Code requirements and relevant financial sector regulations, including OJK (Financial Services Authority) guidelines. It details the terms and conditions of financial transactions, including loan amounts, interest rates, repayment terms, security arrangements, and default provisions. The document incorporates necessary compliance elements with Indonesian banking regulations, consumer protection laws, and specific sector requirements where applicable.

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Financial Agreement

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What is a Financial Agreement?

The Financial Agreement is a crucial legal instrument in Indonesian business operations, designed to facilitate and regulate financial transactions between parties under Indonesian law. It is commonly used for various purposes including corporate lending, project financing, working capital facilities, and investment arrangements. The document must comply with Indonesian Civil Code (Kitab Undang-undang Hukum Perdata) requirements and financial sector regulations, particularly those issued by the Financial Services Authority (OJK) and Bank Indonesia. This agreement type is essential for businesses seeking financing in Indonesia's growing economy and requires careful consideration of local regulatory requirements, including mandatory Indonesian language provisions for agreements with Indonesian parties.

What sections should be included in a Financial Agreement?

1. Parties: Identification and details of all parties to the agreement, including their legal status and authority to enter into the agreement

2. Background: Context of the agreement, relationship between parties, and purpose of the financial arrangement

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules for interpreting the agreement

4. Facility Amount and Purpose: Details of the financial facility being provided and its intended use

5. Conditions Precedent: Conditions that must be satisfied before the agreement becomes effective or funds are disbursed

6. Disbursement Terms: Procedures and conditions for disbursement of funds

7. Repayment Terms: Schedule and methods of repayment, including principal and interest calculations

8. Interest and Fees: Interest rates, calculation methods, and all applicable fees

9. Security: Details of any security or collateral provided to secure the financial obligations

10. Representations and Warranties: Statements of fact and assurances given by each party

11. Covenants: Ongoing obligations and restrictions on the parties during the term of the agreement

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

13. Termination: Conditions and procedures for terminating the agreement

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

15. Notices: Procedures for giving formal notices under the agreement

16. General Provisions: Standard boilerplate clauses including amendments, assignments, and severability

What sections are optional to include in a Financial Agreement?

1. Currency Provisions: Required when dealing with foreign currency transactions, specifying exchange rates and currency risk allocation

2. Islamic Finance Provisions: Required when the agreement needs to comply with Sharia principles

3. Regulatory Compliance: Detailed section needed when the transaction requires specific regulatory approvals or compliance

4. Tax Provisions: Detailed section needed when complex tax implications exist or cross-border elements are involved

5. Electronic Transaction Terms: Required when the agreement involves electronic disbursements or digital banking services

6. Insurance Requirements: Required when specific insurance coverage is needed for the financial facility

7. Syndication Provisions: Required when multiple lenders are involved or syndication is contemplated

What schedules should be included in a Financial Agreement?

1. Schedule 1 - Facility Details: Detailed terms of the financial facility including amounts, interest rates, and payment schedules

2. Schedule 2 - Conditions Precedent Documents: List of all documents required before the agreement becomes effective

3. Schedule 3 - Security Details: Detailed description of all security or collateral provided

4. Schedule 4 - Disbursement Schedule: Timeline and conditions for staged disbursements if applicable

5. Schedule 5 - Form of Drawdown Notice: Standard form for requesting disbursements

6. Schedule 6 - Calculation of Interest and Fees: Detailed methodology for calculating interest and other fees

7. Appendix A - Required Regulatory Approvals: List of necessary regulatory approvals and compliance requirements

8. Appendix B - Form of Compliance Certificate: Standard form for periodic compliance certification

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions




















































Clauses











































Relevant Industries

Banking

Financial Services

Insurance

Real Estate

Manufacturing

Agriculture

Mining

Technology

Retail

Infrastructure

Energy

Transportation

Healthcare

Education

Telecommunications

Construction

Hospitality

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Banking

Credit Administration

Operations

Corporate Secretariat

Internal Audit

Business Development

Account Management

Investment

Corporate Affairs

Regulatory Affairs

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Secretary

Treasury Manager

Financial Controller

Risk Manager

Compliance Officer

Credit Manager

Investment Manager

Account Manager

Business Development Manager

Corporate Banking Manager

Legal Director

Managing Director

Finance Manager

Operations Director

Senior Accountant

Financial Analyst

Credit Analyst

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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