Document background
The Demand Loan Agreement is commonly used in Indonesian business practices where flexible, short-term financing is required. This type of agreement is particularly suitable for working capital needs, bridge financing, or temporary funding requirements. The document establishes the terms under which a lender provides funds to a borrower, with the distinctive feature that the entire outstanding amount becomes repayable upon the lender's demand. The agreement must comply with Indonesian banking laws, particularly Law No. 7 of 1992 on Banking (as amended) and relevant OJK regulations. It typically includes provisions for interest calculation, security arrangements (if any), events of default, and enforcement mechanisms, all structured within the framework of Indonesian civil law and financial regulations. The Demand Loan Agreement is especially valuable for businesses seeking flexible funding solutions while operating within Indonesia's legal and regulatory environment.
