Acquiring Loans from Private Foreign Creditors to Finance Government Projects

The Minister of Finance (“Minister”) recently issued Regulation No. 45/PMK.08/2014 of 2014 on Procedures for Financing Procurements Funded by Private Foreign Creditors (“2014 Regulation”).

Under the 2014 Regulation, parties that fall under the definition of a Foreign Private Creditor are: 1) foreign financial institutions, 2) national financial institutions, and 3) non-financial institutions located outside Indonesia which provide loans to the Indonesian Government under a loan agreement the performance of which is not guaranteed by an export credit insurance company (Art. 1 (3), 2014 Regulation).