Personal Guaranty Agreement Template for Indonesia

The Personal Guaranty Agreement is a crucial document in Indonesian business and financial transactions, used when additional security is required for credit arrangements or commercial dealings. It enables creditors to seek payment from a guarantor if the principal debtor defaults on their obligations. The agreement must comply with Indonesian Civil Code requirements and typically includes detailed provisions on the scope of the guarantee, enforcement mechanisms, and the guarantor's obligations. This document is particularly important in securing business loans, commercial leases, and other financial arrangements where the creditor requires additional assurance beyond the principal debtor's commitment. The Personal Guaranty Agreement must be drafted in both Indonesian and any other required language (if applicable) to ensure enforceability under Indonesian law.

1. Parties: Identification of the Guarantor, Creditor, and Principal Debtor, including their complete legal names and addresses

2. Background: Context of the guarantee, reference to the main debt agreement, and the relationship between the Guarantor and Principal Debtor

3. Definitions: Key terms used throughout the agreement, including 'Guaranteed Obligations', 'Principal Agreement', 'Event of Default'

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

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

6. Guarantor's Representations and Warranties: Guarantor's confirmations regarding their capacity, authority, and financial ability to provide the guarantee

7. Payment Obligations: Details of when and how the Guarantor must perform their payment obligations upon default by the Principal Debtor

8. Preservation of Rights: Creditor's rights preservation, including the right to pursue either the Principal Debtor or Guarantor

9. Duration and Release: Term of the guarantee and conditions for the Guarantor's release from obligations

10. Enforcement: Procedures and rights for enforcing the guarantee, including any specific Indonesian law requirements

11. Notices: Communication procedures between parties, including required formats and addresses

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

13. Language: Statement on the prevailing language (must include Bahasa Indonesia version as per Law No. 24 of 2009)

14. Execution: Signature blocks and execution requirements