Credit Facilities
Term sheets, facility agreements, and supporting documents for bilateral and syndicated lending.
Surabaya · East Java · Indonesia
Banking & Finance Lawyer Surabaya — Counsel for Lenders, Borrowers, and Investors
Integra Law Office advises banks, multifinance companies, and corporate borrowers on Indonesian finance law from our Surabaya base. We structure credit facilities, security packages, trade finance, and workouts — documentation that holds up commercially and survives in court.
Finance law anchored in East Java's commercial centre.
Surabaya is the financial hub for East Java — home to national and regional banks, multifinance companies, and a growing fintech ecosystem serving the manufacturing, trading, and logistics sectors that drive the regional economy. Financial transactions here have distinct characteristics: facility agreements for industrial borrowers, trade financing through Tanjung Perak port, and supply chain structures for distribution networks across Java.
Indonesian finance law requires every credit facility to be supported by OJK-compliant documentation, properly registered security (fiduciary, mortgage, pledge), and covenants calibrated to real cash-flow triggers. Errors in financial documentation become critical during default or disputes — and by then, it is usually too late to fix them.
We have documented a USD 20M trade financing facility for a fertilizer producer and continue to advise industrial borrowers on facility agreements, security packages, and covenant negotiations across East Java.
When you need a banking and finance lawyer.
Extending or receiving a bilateral or syndicated credit facility and need a term sheet and comprehensive facility agreement.
Structuring a security package — fiduciary, mortgage, pledge, or guarantee — and ensuring flawless registration.
Planning to issue debt instruments such as medium term notes, commercial paper, or sukuk.
A borrower facing non-performing loan status and needing restructuring, rescheduling, or a standstill agreement.
Negotiating covenant packages with banks and needing to ensure they are commercially realistic.
Structuring supply chain finance, invoice financing, or distributor financing programs.
How Indonesian law governs financial transactions.
The Fiduciary Security Law (UU 42/1999) governs the registration of fiduciary security, granting creditors direct execution rights without a court order. The Mortgage Law (UU 4/1996) governs security over land and buildings, registered at the Land Office. Both are pillars of Indonesian finance law practice.
OJK regulations govern credit extension, creditworthiness analysis, and maximum lending limits. For banks operating in Surabaya, understanding OJK regulations alongside local banking practices is essential for compliance and enforceability.
How Integra handles finance matters.
We approach every financial transaction from both sides: legal perfection and commercial reality. Documents must be legally airtight, but they also need to work within the client's operational reality — not legal theory that cannot be executed.
For creditors, we ensure security packages provide a strong position in every default scenario. For borrowers, we negotiate covenants that are proportional and default mechanisms that provide room for resolution before enforcement.
Banking & Finance Legal Services
Security Packages
Fiduciary, mortgage, pledge, and guarantee agreements with proper registration and enforceability.
Trade Finance
L/C documentation, trust receipts, and trade financing structures for importers and exporters in Surabaya.
Supply Chain Finance
Invoice financing, distributor financing, and supply chain funding structures compliant with Indonesian law.
Debt Restructuring
Rescheduling, reconditioning, standstill agreements, and NPL workouts for distressed borrowers.
Frequently Asked Questions
What is the difference between fiduciary security and mortgage (hak tanggungan)?
Fiduciary security covers movable assets (machinery, vehicles, inventory) and is registered online through the AHU system. Mortgage (hak tanggungan) covers land and buildings and is registered at the Land Office (BPN). Both give creditors priority rights, but their execution mechanisms differ.
How long does fiduciary registration take?
Online fiduciary registration through the AHU system typically takes 1-3 business days. The fiduciary certificate is issued upon completion and serves as a powerful execution tool for creditors.
When should I engage a finance lawyer for a credit facility?
For corporate credit facilities — especially those involving complex security, syndication, or cross-border elements — a finance lawyer ensures documentation protects your position. Simple consumer loans typically do not require legal counsel.
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Request a private consultation.
Describe your banking or finance matter. A senior partner will respond within one business day.
Last reviewed: · by Budiarmanto Setyo Hutomo, S.H., M.H.