Feb 04, 2016

Secured Lending in Indonesia


Partner Haryo Baskoro wrote an article about secured lending in Indonesia. A basic concept in a secured financing/lending from lender perspective is that lender would like to have something in hand that can be enforced if a borrower is on default on its payment obligations under the loan agreement. The more security it can take from the borrower the risks of the loan will be considered lower and this is certainly good for the calculation of their productive assets and capital calculation.

From borrower perspective, if they can give more security to the lender then it will enhance its creditworthiness which in return can increase their bargaining power against the lender to get as lower as possible interests.

This article is intended to give a description on what type of security interests that are available under Indonesian law to secure a loan, type of assets that are commonly taken as security by lenders in a financing transaction and arrangements that are intended to give a “security” purpose, but does not have the benefits of security interests.

Please download the pdf for complete article. Happy reading!