Document background
The Employee Loan Agreement is a crucial document used when an employer in Indonesia provides financial assistance to an employee through a formal loan arrangement. This agreement is particularly relevant in situations where employees require financial support for personal or professional development purposes, and the employer is willing to provide such assistance as part of their employee benefits program. The document must comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower, and financial regulations governing lending practices. It includes detailed terms about the loan amount, interest rates, repayment schedule through salary deductions, and provisions for early repayment or employment termination. This type of agreement helps protect both parties' interests while maintaining transparency in the employer-employee relationship.
