Document background
The Consumer Loan and Arbitration Agreement serves as a fundamental document in Indonesian consumer lending operations, designed for use when financial institutions extend credit to individual consumers while establishing a clear framework for dispute resolution through arbitration. This document is particularly relevant in the context of Indonesia's growing consumer finance sector, where it must comply with OJK regulations, the Civil Code, and consumer protection laws. The agreement typically includes comprehensive details about loan terms, interest calculations, repayment schedules, and arbitration procedures. It becomes necessary when a financial institution wants to combine standard consumer loan provisions with mandatory arbitration clauses, thereby providing an alternative to court-based dispute resolution while ensuring regulatory compliance with Indonesian financial services laws.
