Revolving Loan Agreement Template for Indonesia

The Revolving Loan Agreement is a fundamental financing document used in Indonesian banking transactions where borrowers require flexible access to credit. It is particularly suited for businesses with cyclical cash flows or working capital needs, allowing them to draw down funds as needed and repay them when cash is available, with the ability to redraw up to the facility limit. The document must comply with Indonesian banking regulations, including OJK requirements and Bank Indonesia regulations. It typically includes comprehensive provisions on facility mechanics, security arrangements, representations and warranties, covenants, and events of default, all tailored to the Indonesian legal framework. The agreement is commonly used in various sectors from manufacturing to trading, and can be structured as either a bilateral or syndicated facility.

1. Parties: Identification of the lender and borrower with their complete legal names and addresses

2. Background: Recitals explaining the purpose of the facility and basic commercial understanding

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement, including facility-specific terms and interpretation rules

4. The Facility: Core terms of the revolving facility including amount, purpose, and revolving nature

5. Conditions Precedent: Conditions that must be satisfied before initial and subsequent drawdowns

6. Drawdown Mechanics: Procedures and requirements for requesting and making drawdowns under the facility

7. Repayment and Prepayment: Terms for regular repayment, prepayment options, and redrawing availability

8. Interest and Fees: Interest calculation, payment periods, default interest, and facility fees

9. Tax Provisions: Handling of tax deductions, withholding tax, and tax gross-up requirements

10. Representations and Warranties: Standard and transaction-specific representations by the borrower

11. Covenants: Positive and negative undertakings by the borrower

12. Events of Default: Circumstances constituting default and consequences

13. Changes to Parties: Rules for assignment and transfer by either party

14. Administration: Practical aspects of managing the facility, including calculations and notifications

15. Governing Law and Enforcement: Choice of Indonesian law and enforcement provisions

16. Notices: Communication methods and addresses for formal notices

17. Execution: Signature blocks and execution formalities