Project Funding Agreement Template for Indonesia

The Project Funding Agreement serves as a crucial legal instrument in Indonesia's project finance landscape, providing a structured framework for funding arrangements across various sectors. This document is essential when establishing formal funding relationships between investors or financial institutions and project implementers, whether for infrastructure development, technology initiatives, or other sector-specific projects. It ensures compliance with Indonesian investment laws, financial regulations, and sectoral requirements while protecting both funder and recipient interests. The agreement typically includes detailed provisions for fund disbursement, project implementation, monitoring, and reporting mechanisms, along with specific requirements for regulatory compliance, particularly with OJK regulations and foreign investment laws where applicable. This document type is especially relevant in Indonesia's growing economy where project funding arrangements require careful structuring to meet both commercial objectives and regulatory requirements.

1. Parties: Identifies and provides full details of the funding provider and recipient, including registration numbers and addresses

2. Background: Sets out the context of the agreement, including the project overview and parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Purpose and Scope: Details the specific purpose of the funding and scope of the project

5. Funding Amount and Disbursement: Specifies the total funding amount, disbursement schedule, and conditions for release of funds

6. Use of Funds: Stipulates permitted and prohibited uses of the funding

7. Project Implementation: Outlines project timeline, milestones, and deliverables

8. Monitoring and Reporting: Details the reporting requirements, including financial reports and project progress updates

9. Representations and Warranties: Contains statements of fact and assurances from both parties

10. Obligations of the Recipient: Lists all responsibilities and commitments of the funding recipient

11. Obligations of the Funder: Lists all responsibilities and commitments of the funding provider

12. Intellectual Property: Addresses ownership and rights to project-related intellectual property

13. Confidentiality: Sets out obligations regarding confidential information

14. Term and Termination: Specifies agreement duration and circumstances for termination

15. Consequences of Termination: Details what happens upon termination, including treatment of unused funds

16. Force Majeure: Addresses unforeseeable circumstances preventing fulfillment of obligations

17. Governing Law: Specifies Indonesian law as governing law and jurisdiction

18. Dispute Resolution: Outlines process for resolving disputes

19. General Provisions: Contains standard boilerplate clauses including notices, amendments, and assignment