Cash Management Agreement Template for Indonesia

The Cash Management Agreement is essential for businesses operating in Indonesia that require professional banking services to manage their cash flows, payments, and liquidity effectively. This document is typically used when a company needs to establish a formal relationship with a bank for comprehensive cash management services, including but not limited to account management, payment processing, collection services, liquidity management, and reporting. The agreement must comply with Indonesian banking regulations, particularly those issued by Bank Indonesia and the Financial Services Authority (OJK), and addresses crucial aspects such as service scope, security protocols, fee structures, and compliance requirements. It's particularly important for businesses with significant transaction volumes or complex financial operations requiring sophisticated cash management solutions.

1. Parties: Identification of the financial institution providing cash management services and the client company

2. Background: Context of the agreement and brief description of the cash management services to be provided

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of the cash management services to be provided

5. Account Operations: Rules and procedures for operating the accounts included in the cash management service

6. Instructions and Communications: Procedures for giving instructions and communication between parties

7. Security and Access: Security measures, authentication procedures, and access controls

8. Fees and Charges: Structure and calculation of fees, charges, and payment terms

9. Representations and Warranties: Standard representations and warranties from both parties

10. Obligations of the Parties: Key responsibilities and obligations of both the bank and the client

11. Confidentiality: Provisions regarding confidential information and data protection

12. Anti-Money Laundering Compliance: Compliance requirements with Indonesian AML regulations

13. Liability and Indemnity: Allocation of risks and responsibilities between parties

14. Force Majeure: Provisions for unforeseen circumstances and their handling

15. Term and Termination: Duration of agreement and termination provisions

16. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction

17. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment