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Loan Sharing Agreement for Indonesia

Loan Sharing Agreement Template for Indonesia

A comprehensive agreement governed by Indonesian law that establishes and regulates the relationship between multiple lenders participating in a shared loan facility. The document details the terms of participation, rights and obligations of each lender, loan administration procedures, and payment mechanics in accordance with Indonesian banking regulations and civil law requirements. It includes provisions for security arrangements, default scenarios, and dispute resolution mechanisms while ensuring compliance with local financial services authority (OJK) regulations and Bank Indonesia requirements.

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Loan Sharing Agreement

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What is a Loan Sharing Agreement?

The Loan Sharing Agreement is a crucial document used in Indonesian financing arrangements where multiple lenders combine their resources to provide a loan facility to a borrower. This type of agreement has become increasingly important in the Indonesian market, particularly for large-scale financing where risk sharing is desired. The document must comply with Indonesian Civil Code (KUH Perdata) requirements, banking regulations, and OJK guidelines. It typically details participation percentages, voting rights, payment waterfalls, and administrative procedures. The agreement is especially relevant for syndicated loans, club deals, and other multi-lender arrangements, providing a clear framework for lender cooperation while protecting individual lender interests under Indonesian law.

What sections should be included in a Loan Sharing Agreement?

1. Parties: Identification of all participating lenders and the borrower(s), including their complete legal names, addresses, and registration numbers if applicable

2. Background: Context of the loan sharing arrangement, purpose of the loan, and basic structure of the sharing arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including financial terms, technical terms, and references to relevant laws

4. Loan Details: Specification of the total loan amount, individual participation percentages, interest rates, and payment terms

5. Rights and Obligations of Lenders: Detailed provisions regarding lenders' rights, voting rights, funding obligations, and participation in decision-making

6. Loan Administration: Procedures for loan disbursement, payment collection, and distribution of payments among lenders

7. Payment Mechanics: Detailed procedures for how payments are made, collected, and distributed among the participating lenders

8. Default Provisions: Circumstances constituting default and consequences thereof, including enforcement procedures

9. Representations and Warranties: Standard representations and warranties from all parties regarding their capacity and authority

10. Costs and Expenses: Allocation of costs, expenses, and fees among the participating lenders

11. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

12. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability

What sections are optional to include in a Loan Sharing Agreement?

1. Security Arrangements: Required when the loan is secured by collateral, detailing the security structure and enforcement rights

2. Loan Servicer Provisions: Needed when a third-party loan servicer is appointed to manage the loan

3. Inter-creditor Provisions: Required for complex arrangements with multiple classes of lenders or priority arrangements

4. Currency Provisions: Necessary when the loan involves multiple currencies or foreign exchange considerations

5. Insurance Requirements: Required when specific insurance coverage is mandatory for the loan

6. Special Purpose Vehicle Provisions: Needed when the loan sharing is structured through an SPV

7. Electronic Documentation: Required when the agreement will be executed or maintained electronically

What schedules should be included in a Loan Sharing Agreement?

1. Schedule 1 - Lender Commitments: Detailed breakdown of each lender's participation amount and percentage

2. Schedule 2 - Payment Schedule: Amortization schedule and payment dates

3. Schedule 3 - Form of Transfer Certificate: Standard form for transferring loan participations

4. Schedule 4 - Administrative Details: Contact information and bank account details for all parties

5. Schedule 5 - Security Details: Details of any security or collateral (if applicable)

6. Appendix A - Calculation Methodology: Detailed methodology for calculating interest, fees, and payment distributions

7. Appendix B - Required Documents: List of all required supporting documents and certificates

8. Appendix C - Compliance Certificates: Standard forms for periodic compliance certification

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions



























































Clauses







































Relevant Industries

Banking

Financial Services

Real Estate

Infrastructure

Manufacturing

Energy

Mining

Agriculture

Transportation

Construction

Technology

Healthcare

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit

Corporate Finance

Investment

Portfolio Management

Banking Operations

Loan Administration

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Compliance Officer

Risk Manager

Credit Manager

Loan Officer

Syndication Manager

Corporate Finance Manager

Investment Manager

Portfolio Manager

Banking Relationship Manager

Financial Controller

Senior Legal Counsel

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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