Time Deposit Agreement Template for Indonesia

The Time Deposit Agreement serves as the primary contractual document establishing the relationship between a financial institution and a depositor in Indonesia for fixed-term deposit investments. This document is essential when a customer wishes to place funds in a time deposit account, which typically offers higher interest rates than regular savings accounts in exchange for maintaining the deposit for a fixed period. The agreement must comply with Indonesian banking regulations, including Bank Indonesia directives and OJK (Financial Services Authority) requirements. It covers crucial aspects such as deposit terms, interest calculations, withdrawal conditions, and deposit insurance protection. The document is particularly important for risk management and regulatory compliance, as it clearly defines the rights and obligations of both the financial institution and the depositor while ensuring adherence to Indonesian banking laws and consumer protection regulations.

1. Parties: Identification of the bank and the depositor, including complete legal names, addresses, and registration details

2. Background: Brief context explaining the purpose of the agreement and the nature of time deposit products

3. Definitions: Definitions of key terms used throughout the agreement, including 'Time Deposit', 'Maturity Date', 'Interest Rate', and other relevant banking terms

4. Deposit Terms: Core terms including deposit amount, currency, term duration, and maturity date

5. Interest Rate and Calculation: Specification of the agreed interest rate, calculation method, and payment frequency

6. Deposit Receipt: Details about the time deposit receipt/certificate issued to the depositor

7. Withdrawal and Maturity: Terms and conditions for withdrawal at maturity, early withdrawal penalties, and claim procedures

8. Rights and Obligations: Detailed responsibilities and rights of both the bank and depositor

9. Account Administration: Requirements for maintaining the time deposit account, including minimum balance and documentation

10. Taxes: Provisions regarding tax obligations and withholding requirements on interest earned

11. Force Majeure: Provisions for circumstances beyond parties' control affecting the agreement

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

13. Dispute Resolution: Procedures for resolving disputes between parties

14. Notices: Methods and requirements for formal communications between parties

15. Term and Termination: Duration of the agreement and conditions for termination