Cash Management Services Agreement Template for Indonesia

The Cash Management Services Agreement is a critical document used when establishing a formal relationship between a bank and a corporate client for the provision of cash management services in Indonesia. It is essential for businesses requiring sophisticated banking solutions such as account management, payments processing, collections, liquidity management, and electronic banking services. The agreement must comply with Indonesian banking regulations, including Law No. 7 of 1992 on Banking (as amended), Bank Indonesia regulations, and OJK requirements. It typically includes detailed service descriptions, implementation procedures, security protocols, and fee structures, while addressing specific local requirements such as language requirements under Law No. 24 of 2009. This document is particularly important for organizations seeking to optimize their treasury operations and establish efficient cash management systems within the Indonesian regulatory framework.

1. Parties: Identification of the bank and the client, including their complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, including the bank's authority to provide cash management services and the client's desire to obtain such services

3. Definitions: Detailed definitions of terms used throughout the agreement, including technical banking terms and service-specific terminology

4. Scope of Services: Overview of the cash management services to be provided, including basic service descriptions and general implementation principles

5. Appointment and Authority: Formal appointment of the bank as the cash management service provider and the scope of authority granted by the client

6. Account Operations: Rules and procedures for operating the accounts, including account structures, authorized signatories, and operational mandates

7. Service Implementation: Procedures for implementing the services, including setup requirements, testing phases, and activation processes

8. Security and Access: Security measures, access controls, and authentication procedures for electronic banking services

9. Instructions and Communications: Procedures for giving instructions, forms of communication, and cut-off times

10. Fees and Charges: Fee structure, payment terms, and procedures for fee modifications

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

12. Rights and Obligations: Detailed rights and obligations of both the bank and the client

13. Anti-Money Laundering and Compliance: Compliance requirements with Indonesian AML regulations and other applicable laws

14. Confidentiality: Confidentiality obligations and permitted disclosures

15. Liability and Indemnity: Limitations of liability and indemnification provisions

16. Force Majeure: Force majeure events and their consequences

17. Term and Termination: Duration of the agreement and termination provisions

18. Governing Law and Jurisdiction: Application of Indonesian law and jurisdiction for dispute resolution

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