Bond Waiver Template for Indonesia

A Bond Waiver is utilized in Indonesian financial markets when certain terms, conditions, or obligations under existing bond documentation need to be waived or modified. This document type is particularly relevant during financial restructuring, when compliance with specific bond covenants becomes challenging, or when market conditions necessitate adjustments to bond terms. The Bond Waiver must align with Indonesian law, particularly the Civil Code (KUH Perdata) and OJK regulations, and typically includes detailed information about the bonds involved, the specific provisions being waived, the duration of the waiver, and any conditions attached. It's commonly used by both private corporations and state-owned enterprises, requiring careful consideration of regulatory compliance, bondholder rights, and market implications.

1. Parties: Identification of the Bondholder(s) granting the waiver and the party benefiting from the waiver (typically the Bond Issuer)

2. Background: Context of the original bond issuance, including reference to the bond documents, issue date, face value, and current circumstances necessitating the waiver

3. Definitions: Key terms used in the waiver document, including specific references to the Bond Documents, Waiver Period, and relevant Indonesian legal terms

4. Details of Bonds: Specific identification of the bonds subject to the waiver, including series numbers, ISIN codes, and other relevant identifiers

5. Waiver Declaration: Express statement of the rights, obligations, or conditions being waived, with specific reference to the relevant provisions of the original bond documents

6. Duration and Effect: Specification of whether the waiver is temporary or permanent, and its precise effect on the underlying bond obligations

7. Representations and Warranties: Statements confirming the waiving party's authority to grant the waiver and understanding of its implications

8. Governing Law and Jurisdiction: Explicit statement of Indonesian law as governing law and designation of relevant Indonesian courts for dispute resolution

9. Execution: Signature blocks and execution requirements compliant with Indonesian law