Document background
The Loan Agreement Deed is a crucial legal document used in Indonesia when parties wish to establish a formal lending arrangement with enhanced legal protection and enforceability. Required for certain types of loans under Indonesian law, particularly those involving significant amounts or specific types of security, this deed must be executed before an Indonesian notary public. The document serves as conclusive evidence of the agreement between parties and typically includes detailed provisions on loan terms, security arrangements, representations and warranties, and enforcement mechanisms. The deed format provides stronger legal standing compared to private loan agreements and is often required by Indonesian financial institutions and regulators. This document type is particularly important for corporate loans, property financing, and other significant financial transactions where legal certainty is paramount.
