Document background
The Addendum Loan Agreement is a critical document used in Indonesian banking and finance transactions when parties need to modify terms of an existing loan agreement without creating an entirely new contract. It is commonly used when circumstances require adjustments to financial terms, extension of facility periods, modification of security arrangements, or changes in covenants. The document must comply with Indonesian banking regulations, including OJK and Bank Indonesia requirements, as well as the Indonesian Civil Code. It's particularly important in situations where maintaining the original agreement's framework while implementing specific changes is more practical than creating a new agreement. The addendum must be carefully drafted to ensure it properly references the original agreement and clearly delineates which terms are being modified while maintaining the validity of unchanged terms.
