An Indirect Bank Guarantee is commonly used in international trade and cross-border transactions where a foreign bank's guarantee needs to be "localized" through an Indonesian bank. This document is essential when international parties require a guarantee from a local Indonesian bank, but the foreign party's relationship bank is located outside Indonesia. The structure involves a Counter-Guaranteeing Bank (typically the foreign bank) providing a guarantee to an Issuing Bank in Indonesia, which then issues a guarantee to the beneficiary. The document must comply with Indonesian banking regulations, including Bank Indonesia and OJK requirements, and typically includes provisions for the guarantee amount, validity period, calling conditions, and payment mechanisms. This arrangement is particularly important for international projects, trade finance, and large commercial transactions where local bank guarantees are required by Indonesian law or commercial preference.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership聽of your docs
Alternatively...
1. Parties: Identifies all parties involved: the Applicant (Principal), the Issuing Bank, and the Counter-Guaranteeing Bank
2. Background: Explains the context of the guarantee, including the underlying transaction and the relationship between parties
3. Definitions: Defines key terms used throughout the guarantee document
4. Guarantee Amount and Currency: Specifies the maximum amount of the guarantee and the currency in which it is issued
5. Purpose of Guarantee: Details the specific purpose and scope of the guarantee
6. Duration and Validity: Specifies the effective date, expiry date, and any automatic extension provisions
7. Conditions for Payment: Sets out the circumstances and conditions under which the guarantee can be called
8. Payment Mechanism: Details the process and timeline for making payments under the guarantee
9. Counter-Guarantee Provisions: Specifies the terms of the counter-guarantee between the banks
10. Rights and Obligations: Lists the specific rights and obligations of each party
11. Fees and Charges: Details all applicable fees, charges, and commission
12. Governing Law and Jurisdiction: Specifies Indonesian law as governing law and relevant jurisdiction
1. Language Requirements: Required when the guarantee needs to be bilingual or when specific language requirements apply
2. Anti-Money Laundering Provisions: Required for high-value guarantees or when dealing with specific jurisdictions
3. Force Majeure: Optional clause detailing circumstances under which obligations may be suspended
4. Assignment Restrictions: Required when transfer or assignment of guarantee rights needs to be restricted
5. Electronic Communications: Required when parties agree to accept electronic notifications and communications
6. Dispute Resolution: Optional detailed dispute resolution procedures beyond basic jurisdiction clause
7. Shariah Compliance: Required when the guarantee needs to comply with Islamic banking principles
1. Schedule 1 - Form of Demand: Standard format for making a demand under the guarantee
2. Schedule 2 - Fee Schedule: Detailed breakdown of all fees, charges, and commission
3. Schedule 3 - Supporting Documents: List of required documents to be submitted with guarantee application
4. Schedule 4 - Communication Details: Contact information and authorized signatories for all parties
5. Appendix A - Underlying Contract Details: Summary of the main contract or obligation being guaranteed
6. Appendix B - Bank Authorization Documents: Copies of relevant banking licenses and authorizations
Authors
Find the document you need
Bank Guarantee Draft
An Indonesian law-governed bank guarantee document establishing a bank's commitment to pay a specified sum to a beneficiary upon the principal's default.
Download
International Bank Guarantee
An Indonesian law-governed bank guarantee document securing international commercial obligations, combining local regulatory requirements with international banking standards.
Download
Performance Bond Guarantee
An Indonesian law-governed guarantee instrument where a financial institution ensures a contractor's performance by providing payment security to the project owner.
Download
Contra Bank Guarantee
An Indonesian law-governed agreement establishing counter-indemnity obligations between a principal and a bank relating to an issued bank guarantee, with associated security and reimbursement provisions.
Download
Bank Guarantor Letter
An Indonesian-law governed bank guarantee document representing a bank's commitment to pay a specified sum to a beneficiary upon the principal's default of obligations.
Download
Indirect Bank Guarantee
Template for an Indirect Bank Guarantee under Indonesian law, establishing a guarantee chain between multiple banks with compliance to Indonesian banking regulations.
Download
Bank To Bank Guarantee
An Indonesian law-governed agreement between two banks establishing a guarantee arrangement, subject to Bank Indonesia and OJK regulations.
Download
Guarantee Letter
An Indonesian law-governed document where a guarantor commits to fulfill another party's obligations to a beneficiary under specified conditions.
Download
Letter Of Credit And Standby Letter Of Credit
An Indonesian law-governed banking instrument providing payment security in international trade, following UCP 600 and ISP98 rules with Bank Indonesia regulatory compliance.
Download
Bank Guarantee Bond
An Indonesian law-governed bank guarantee document where a bank guarantees its client's obligations to a third party, subject to Indonesian banking regulations.
Download
Advance Payment Guarantee Bond
An Indonesian law-governed bank guarantee securing advance payments made to contractors/suppliers, ensuring repayment if contractual obligations are not met.
Download
Revolving Bank Guarantee
An Indonesian law-governed agreement establishing a revolving bank guarantee facility, enabling continuous issuance of bank guarantees up to an agreed limit.
Download
Bank Guarantee Performance Bond
An Indonesian law-governed bank guarantee securing a contractor's performance obligations, providing financial security to the project owner through an unconditional bank undertaking.
Download
Irrevocable Letter Of Guarantee
An Indonesian law-governed banking instrument providing an unconditional and irrevocable payment commitment from a bank to a beneficiary upon demand.
Download
Bid Bond Tender Guarantee
An Indonesian law-governed financial guarantee issued by a bank/insurer to secure a bidder's obligations in a tender process.
Download
Bank Letter Of Comfort
An Indonesian law-governed bank document providing assurance about a client's financial standing and banking relationship, without creating a legal guarantee.
Download
Performance Bank Guarantee
An Indonesian law-governed bank guarantee securing a contractor's performance obligations, providing financial assurance to project owners through a bank's unconditional payment commitment.
Download
骋别苍颈别鈥檚 Security Promise
Genie is the safest place to draft. Here鈥檚 how we prioritise your privacy and security.
Your data is private:
We do not train on your data; 骋别苍颈别鈥檚 AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
