Document background
The Convertible Promissory Note is a widely used financing instrument in Indonesia's growing startup and business ecosystem. It serves as a bridge between debt and equity financing, allowing companies to secure immediate funding while deferring valuation discussions. This document type is particularly useful for early-stage companies seeking growth capital, providing investors with the security of debt and the upside potential of equity. Under Indonesian law, these notes must comply with various regulations including the Indonesian Civil Code, Company Law (Law No. 40 of 2007), and relevant Financial Services Authority (OJK) regulations. The document typically includes provisions for interest accrual, conversion mechanisms, and mandatory use of Indonesian Rupiah, while also accommodating foreign investment regulations where applicable.
