The Guarantee Agreement is a crucial document in Indonesian commercial and financial transactions, used when one party needs to provide security for another's obligations. This agreement type is commonly used in various contexts, including corporate lending, project finance, and commercial transactions. The Guarantee Agreement must comply with Indonesian Civil Code requirements and relevant banking regulations, particularly regarding the form and content of guarantees. It requires careful consideration of the Guarantor's capacity, the scope of guaranteed obligations, and enforcement mechanisms. The document typically includes specific provisions required by Indonesian law, such as the express waiver of certain rights under Articles 1831 and 1847 of the Indonesian Civil Code, and may need to be executed in notarial deed form depending on the circumstances.

1. Parties: Identification of the Guarantor, Principal Debtor, and Beneficiary with their complete details as required under Indonesian law

2. Background: Context of the guarantee, including reference to the underlying principal agreement being guaranteed

3. Definitions: Definitions of key terms used throughout the agreement, including 'Guaranteed Obligations', 'Security', and other relevant terms

4. Guarantee: Core section detailing the scope of the guarantee, including the specific obligations being guaranteed

5. Nature of Guarantee: Specification that this is a continuing guarantee and details of whether it is conditional or unconditional

6. Guarantor's Representations and Warranties: Fundamental statements about the Guarantor's capacity, authority, and ability to provide the guarantee

7. Payment Obligations: Details of how and when the Guarantor must make payments, including currency and method

8. Preservation of Rights: Provisions ensuring the Beneficiary's rights are preserved in various circumstances

9. Indemnity: The Guarantor's obligation to indemnify the Beneficiary against losses

10. Costs and Expenses: Allocation of costs related to the preparation and enforcement of the guarantee

11. Notices: Process and requirements for giving notices under the agreement

12. Governing Law and Jurisdiction: Confirmation of Indonesian law as governing law and jurisdiction for disputes