ARTICLE 03 — FINANCIAL INSTRUMENT ADVISORY

Financial Instrument Advisory

Legal Structuring & Due Diligence for BG, LC, DLC, SBLC, and Trade Finance Instruments

The Biggest Risk in Trade Finance Isn't Money. It's the Documents.

One wrong word in an SBLC can cause a bank to refuse payment of USD 10 million. We ensure your instruments are "bankable" and compliant with both Indonesian law and international standards.

Legal Note: Instruments such as LC and SKBDN are regulated under POJK No.26 of 2024 and UCP 600 ICC. SBLC functions similarly to a Bank Guarantee and is subject to international standards UCP 600 / ISP 98.

Our Services

1. Bank Guarantee / BG

Review & drafting of Bid Bonds, Performance Bonds, Advance Payment Guarantees. Basis: Indonesian Civil Code Art. 1820-1850. For Government & Private Projects.

2. Letter of Credit / LC & SKBDN

Legal review of Import-Export LC documents. Sight & Usance. Ensuring documents comply with UCP 600 to avoid "discrepancies".

3. Standby Letter of Credit / SBLC

Structuring SBLC as a "contingent" guarantee. Types: Performance, Advance Payment, Bid Bond, Financial. An alternative to BG for international projects.

4. DLC / Deferred Payment LC

Legal structuring for deferred payments. Review of underlying agreements and ensuring BI and FX risk compliance.

Who We Serve

  • Contractors & Developers: Need Project BGs and payment guarantees
  • Importers-Exporters: Secure transactions with LC/SKBDN
  • Infrastructure Companies: Require SBLC for international tenders
  • Banks: Need Legal Opinion on client instrument structures

Our Deliverables

  1. Legal Opinion on Instrument Structure
  2. Review & Mark-up of Bank-issued BG / SBLC Drafts
  3. Legal Due Diligence for POJK & UCP 600 Compliance
  4. Negotiation Support with Issuing Banks

Need a Review of Your Bank Instrument?

Consult us before signing. Avoid multi-million dollar legal traps.


Consult via WhatsApp