Document background
The Product Loan Agreement serves as a crucial legal instrument in Indonesian business operations where temporary transfer of product possession is required without transferring ownership. This document type is particularly relevant when companies or individuals need to loan equipment, machinery, or other valuable items for a specified period. The agreement, governed by Indonesian law and complying with the Indonesian Civil Code (KUHPerdata), establishes clear terms for product use, maintenance obligations, and return conditions. It protects both lender and borrower interests by clearly defining responsibilities, risk allocation, and liability limitations. The Product Loan Agreement is commonly used in various scenarios, from equipment testing periods to temporary replacement solutions, and includes specific provisions required under Indonesian consumer protection laws and financial services regulations.
