Document background
The Finance Agreement serves as the primary document for establishing financial facilities in Indonesia, whether for corporate financing, project development, or asset acquisition. It is designed to comply with Indonesian banking regulations, OJK requirements, and civil law principles while providing a clear framework for the lending relationship. The agreement becomes necessary when parties seek to formalize financial arrangements exceeding casual transactions, requiring detailed terms for facility usage, repayment obligations, and security arrangements. It encompasses all essential elements required under Indonesian law for a valid and enforceable financial contract, including specific provisions for collateral, guarantee mechanisms, and dispute resolution procedures. The document is particularly important given Indonesia's strict regulatory environment for financial services and the need for clear documentation of financial obligations.
