Document background
The Loan Note Agreement is a fundamental financial instrument used in Indonesian lending transactions to formalize debt obligations between parties. This document is essential when establishing a formal lending relationship, whether for corporate financing, project funding, or structured lending arrangements. It must comply with Indonesian banking regulations, including OJK requirements and the Indonesian Civil Code (KUHPerdata). The agreement typically details the loan amount, interest rate, repayment schedule, security arrangements (if any), events of default, and remedies available to the lender. It's particularly important in the Indonesian context due to specific local law requirements regarding language, form, and execution of loan documents. The agreement can be used for various purposes, from simple bilateral loans to complex syndicated facilities, and must often be executed in both English and Indonesian languages to ensure enforceability.
