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The Letter of Intent (Finance) is a crucial preliminary document used in Indonesian financial transactions to establish the framework for negotiations and outline key terms of proposed financial arrangements. Typically employed before entering into definitive agreements, this document is essential when parties are contemplating significant financial transactions such as loans, investments, acquisitions, or other financial arrangements. While primarily non-binding, certain provisions like confidentiality and exclusivity may be specifically made binding. The document must comply with Indonesian financial regulations and the Civil Code, and it's particularly important in cross-border transactions where Indonesian law governs the arrangement. The Letter of Intent (Finance) helps parties align their expectations, establish negotiation parameters, and create a roadmap for the transaction while protecting both parties' interests during the preliminary stages.

1. Date and Parties: Opening section identifying the date and the parties involved, including their complete legal names and addresses

2. Transaction Overview: Brief description of the proposed financial transaction or arrangement being contemplated

3. Key Terms: Outline of the principal financial and commercial terms of the proposed transaction

4. Timeline: Proposed schedule for due diligence, negotiation, and completion of the final agreement

5. Confidentiality: Statement regarding the confidential nature of the discussions and any information exchanged

6. Exclusivity: If applicable, terms of exclusive negotiation period

7. Non-Binding Nature: Clear statement that the LOI is non-binding except for specified provisions

8. Governing Law: Specification that Indonesian law governs the LOI

9. Signature Block: Space for authorized representatives to sign and date the document