Project Finance Loan Agreement Template for Indonesia

A comprehensive financing agreement governed by Indonesian law that establishes the terms and conditions for providing long-term debt financing to a project-specific entity. The agreement incorporates specific requirements under Indonesian banking regulations and security laws, including compliance with Bank Indonesia and OJK (Financial Services Authority) regulations. It details the loan facility, security package, project monitoring requirements, and includes specific provisions for Indonesian law security interests such as hak tanggungan for land and fiduciary security for movable assets. The document addresses both domestic and international aspects of project financing while ensuring compliance with Indonesian foreign investment and currency control regulations.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get template free
Upload to review

Your data doesn't train Genie's AI

You keep IP ownership of your docs

4.6 / 5
4.6 / 5
4.8 / 5

What is a Project Finance Loan Agreement?

The Project Finance Loan Agreement is a fundamental document used in financing major infrastructure and development projects in Indonesia. It is specifically designed to comply with Indonesian banking laws, including Law No. 7 of 1992 on Banking (as amended) and relevant OJK regulations, while incorporating international project finance principles. This agreement is utilized when financing is provided on a limited or non-recourse basis, where lenders primarily look to the project's cash flows for repayment. The document includes comprehensive provisions for security interests under Indonesian law, project monitoring mechanisms, and account management structures. It addresses specific Indonesian regulatory requirements such as mandatory use of Rupiah for domestic transactions, offshore borrowing regulations, and investment restrictions in certain sectors. The agreement typically forms part of a larger suite of project finance documents and is crucial for both domestic and international financing transactions in Indonesia.

What sections should be included in a Project Finance Loan Agreement?

1. Parties: Identification of the lender(s), borrower, and any guarantors or security providers

2. Background: Description of the project, purpose of the facility, and basic transaction structure

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and interpretation rules

4. The Facility: Details of the loan amount, purpose, availability period, and drawdown mechanics

5. Conditions Precedent: Documents and conditions required before drawdown, including technical and legal requirements

6. Drawdown Procedures: Process and requirements for utilization of the facility

7. Interest and Fees: Interest calculation, payment periods, default interest, and all applicable fees

8. Repayment and Prepayment: Repayment schedule, mandatory and voluntary prepayment provisions

9. Project Accounts: Structure and operation of project accounts, cash flow waterfall

10. Security: Security package details, ranking, and enforcement provisions

11. Representations and Warranties: Standard and project-specific representations and warranties

12. Information Undertakings: Financial and project-related reporting requirements

13. General Undertakings: General covenants applicable to the borrower and project

14. Project Undertakings: Specific covenants related to project construction, operation, and maintenance

15. Events of Default: Circumstances constituting default and consequences

16. Changes to Parties: Transfer and assignment provisions

17. Administration: Administrative provisions, calculations, and notices

18. Governing Law and Enforcement: Choice of law, jurisdiction, and dispute resolution provisions

What sections are optional to include in a Project Finance Loan Agreement?

1. Intercreditor Provisions: Required when multiple lenders or creditor classes are involved, establishing payment priorities and voting rights

2. Political Risk Protection: Needed for projects with significant political risk exposure or involving state entities

3. Environmental and Social Requirements: Detailed provisions required for projects with significant environmental impact or involving international financial institutions

4. Insurance: Detailed insurance requirements section, needed for high-risk projects

5. Direct Agreements: Required when step-in rights are needed with key project counterparties

6. Offshore Security Arrangements: Required when security includes offshore assets or accounts

7. Currency Protection: Needed when there are multiple currencies involved or significant exchange rate risks

What schedules should be included in a Project Finance Loan Agreement?

1. Form of Drawdown Request: Standard form for requesting loan disbursements

2. Conditions Precedent Documents: Detailed list of required CP documents and evidence

3. Project Description: Detailed technical description of the project and implementation plan

4. Financial Model: Base case financial projections and assumptions

5. Form of Construction Progress Report: Template for regular construction monitoring reports

6. Form of Operating Report: Template for operational phase reporting

7. Security Documents: Forms of security documents and perfection requirements

8. Insurance Requirements: Detailed specification of required insurance coverage

9. Project Contracts: List and copies of material project contracts

10. Account Management: Detailed procedures for operation of project accounts

11. Financial Covenants: Detailed financial ratios and calculations

12. Form of Transfer Certificate: Standard form for transfers of loan participations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Project Agreement

Cost

Free to use

Find the exact document you need

Build Agreement

An Indonesian law-governed construction contract establishing terms and conditions for building projects, compliant with local construction regulations and industry standards.

Download

Project Consortium Agreement

An Indonesian law-governed agreement establishing a consortium between multiple parties for collaborative project execution, defining rights, responsibilities, and operational framework.

Download

Project Labor Agreement

An Indonesian-law governed Project Labor Agreement establishing terms and conditions for construction project labor relations and workforce management.

Download

Project Management Agreement (Construction)

An Indonesian law-governed agreement for construction project management services, outlining service scope, responsibilities, and compliance requirements.

Download

Film Shopping Agreement

An Indonesian law-governed agreement authorizing an agent to market and present a film to potential buyers in specified territories, outlining rights, commission structures, and approval requirements.

Download

Subcontractor Work Order

An Indonesian law-governed agreement between a main contractor and subcontractor defining specific construction works, terms, and obligations within a larger project.

Download

Construction Contractor Agreement

An Indonesian law-governed agreement between project owner and contractor establishing terms for construction works execution.

Download

Project Financing Agreement

An Indonesian law-governed agreement establishing terms and conditions for project financing, including facility details, security package, and compliance with local banking and investment regulations.

Download

Mural Agreement

An Indonesian law-governed agreement for commissioning and executing mural artwork projects, addressing artistic, legal, and commercial aspects of mural creation.

Download

Home Construction Agreement

An Indonesian law-governed agreement between property owner and contractor for residential property construction, compliant with local construction and housing regulations.

Download

Project Based Employment Agreement

An Indonesian law-compliant employment agreement for project-based work arrangements (PKWT), defining project terms, conditions, and employment parameters.

Download

Pipeline Agreement

An agreement governing pipeline operations and transportation services in Indonesia, compliant with local oil and gas regulations.

Download

House Building Contractor Agreement

An Indonesian law-governed agreement between a property owner and contractor for residential house construction, establishing construction terms, specifications, and obligations.

Download

Freelance Project Contract

An Indonesian law-governed contract establishing terms and conditions for project-based freelance work, including scope, deliverables, and payment terms.

Download

IT Project Agreement

An Indonesian law-governed agreement for IT project implementation, detailing scope, deliverables, and compliance requirements.

Download

General Contractor Work Agreement

An Indonesian law-governed agreement between project owner and general contractor establishing terms for construction services delivery.

Download

Construction Operating Agreement

An Indonesian law-governed agreement establishing terms for facility construction and subsequent operation, combining construction and operational requirements under Indonesian construction services legislation.

Download

Mining Concession Agreement

An Indonesian law-governed agreement granting mining rights and establishing operational terms for mineral exploration and production activities.

Download

Consortium Partnership Agreement

An Indonesian law-governed agreement establishing a consortium partnership between multiple organizations, defining their rights, responsibilities, and operational framework.

Download

Engineering And Construction Subcontract

An Indonesian law-governed agreement between main contractor and subcontractor for specific engineering and construction works, complying with local construction regulations and standards.

Download

Business Consortium Agreement

An Indonesian law-governed agreement establishing a business consortium arrangement between multiple parties, defining their collaboration framework and mutual obligations.

Download

Operation And Maintenance Agreement Solar Power Plant

An Operation and Maintenance Agreement template for solar power plants, compliant with Indonesian law and regulations, covering comprehensive facility management and maintenance requirements.

Download

Subcontractor Work Agreement

An Indonesian law-governed agreement between a main contractor and subcontractor defining work scope, terms, and compliance requirements for delegated project work.

Download

Simple Construction Agreement

An Indonesian law-governed construction agreement establishing core terms between property owner and contractor for straightforward construction projects.

Download

Building Construction Agreement

An Indonesian law-governed agreement between property owner and contractor for building construction works, compliant with local construction regulations.

Download

Project Support Agreement

An Indonesian law-governed agreement defining the terms and conditions for providing project support services, including scope, responsibilities, and commercial terms.

Download

Project Management Agreement

An Indonesian law-governed agreement establishing terms for project management services, including scope, responsibilities, and deliverables.

Download

Project Alliance Agreement

An Indonesian law-governed collaborative agreement for complex project delivery, establishing shared risk-reward mechanisms and joint decision-making frameworks.

Download

Consortium Agreement Construction Project

Indonesian law-governed agreement establishing a construction consortium, defining member rights, obligations, and project execution framework.

Download

Project Profit Sharing Agreement

An Indonesian law-governed agreement establishing profit-sharing arrangements between parties for a specific project, including financial, operational, and management frameworks.

Download

Project Implementation Agreement

An Indonesian law-governed agreement establishing the framework for project implementation between project owners and contractors, detailing execution responsibilities and compliance requirements.

Download

Construction Lease Agreement

An Indonesian law-governed agreement combining property lease terms with construction rights and obligations, subject to local building and property regulations.

Download

Build Own Transfer Agreement

An Indonesian law-governed agreement structuring Build-Own-Transfer infrastructure projects, covering construction, operation, and facility transfer phases.

Download

Project Agreement Between Company And Client

An Indonesian law-governed agreement defining project terms, deliverables, and obligations between a service provider and client.

Download

Pilot Project Agreement

An Indonesian law-governed agreement establishing terms and conditions for implementing and evaluating a pilot project, including scope, responsibilities, and success criteria.

Download

Project Service Agreement

An Indonesian law-governed agreement for project-based service delivery, detailing scope, obligations, and terms between service provider and client.

Download

Construction Project Agreement

An Indonesian law-governed agreement establishing terms and conditions for construction projects, including scope, payments, and regulatory compliance requirements.

Download

Software Implementation Agreement

An Indonesian law-governed agreement for software implementation projects, detailing implementation terms, deliverables, and compliance requirements.

Download

Road Construction Agreement

An Indonesian law-governed agreement for road construction projects, outlining technical, financial, and legal requirements under Indonesian construction regulations.

Download

Project Funding Agreement

An Indonesian law-governed agreement that establishes terms and conditions for project funding between providers and recipients, including disbursement schedules and compliance requirements.

Download
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now