Document background
The Drawdown Loan Agreement is a crucial financing instrument in Indonesian business practice, commonly used when borrowers require flexible access to funds over time rather than a single lump sum disbursement. This document type is particularly relevant in project financing, business expansion, or working capital arrangements where funding needs are periodic or milestone-based. The agreement must comply with Indonesian banking regulations, including Law No. 7 of 1992 on Banking (as amended) and relevant OJK (Financial Services Authority) regulations. It typically includes detailed provisions for drawdown mechanics, conditions precedent for each drawdown, interest calculations, repayment terms, security arrangements (if applicable), and specific Indonesian law requirements such as language requirements and mandatory governing law provisions.
