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A Joint Venture Agreement sets out how two or more companies will work together on a specific business project in Indonesia. It spells out each partner's roles, responsibilities, and share of profits while following Indonesian investment laws and the negative investment list (DNI) requirements for foreign ownership.

These agreements typically cover key aspects like capital contributions, management structure, profit sharing, and dispute resolution methods. Under Indonesian law, joint ventures usually operate through a PT (Perseroan Terbatas) company structure, with clear provisions for technology transfer and local content requirements when foreign partners are involved.

Use a Joint Venture Agreement when combining resources with another company to tackle large-scale projects in Indonesia's key sectors like infrastructure, manufacturing, or natural resources. This becomes essential when your company needs local expertise, wants to share financial risks, or must comply with Indonesian foreign ownership restrictions in certain industries.

The agreement proves particularly valuable for infrastructure projects requiring substantial capital, technology-intensive ventures needing specialized expertise, or when entering regulated sectors with mandatory local partnership requirements. It helps establish clear operational control, protect intellectual property, and ensure smooth profit distribution while meeting Indonesian investment regulations.

• Contractual Joint Venture Agreement: Forms a partnership without creating a new legal entity, ideal for specific projects or limited-duration collaborations
• Joint Venture Licensing Agreement: Focuses on technology transfer and intellectual property sharing between partners while meeting Indonesian tech transfer requirements
• Joint Partnership Agreement: Creates a more comprehensive business relationship with shared management and operations under Indonesian company law
• JV Partnership Agreement: Emphasizes equity sharing and corporate governance in regulated sectors requiring local ownership

• Corporate Partners: Indonesian companies and foreign investors who combine resources, expertise, and capital to pursue joint business ventures
• Legal Teams: Corporate lawyers and legal consultants who draft agreements ensuring compliance with Indonesian investment laws and foreign ownership restrictions
• Board Members: Directors and commissioners who approve and oversee the joint venture's operations and strategic decisions
• Government Regulators: BKPM officials who review and approve foreign investment aspects of joint ventures
• Industry Experts: Technical advisors and consultants who help structure operational aspects and validate technical requirements

• Business Details: Gather each partner's complete legal names, registration numbers, and authorized representatives
• Investment Structure: Define capital contributions, profit-sharing ratios, and ownership percentages that comply with Indonesian foreign investment rules
• Operational Plan: Document management roles, decision-making processes, and day-to-day operational responsibilities
• Compliance Check: Review sector-specific regulations and local content requirements for your industry
• Exit Strategy: Plan termination conditions, buyout procedures, and dispute resolution mechanisms under Indonesian law
• Document Generation: Use our platform to create a legally-sound agreement that incorporates all essential elements while minimizing drafting errors

• Party Details: Full legal names, addresses, and registration numbers of all joint venture partners
• Capital Structure: Detailed breakdown of contributions, ownership percentages, and profit-sharing arrangements
• Management Rights: Clear governance structure, voting mechanisms, and decision-making processes
• Business Scope: Specific permitted activities aligned with Indonesian investment regulations
• Local Content: Requirements for using Indonesian resources and workforce
• Termination Terms: Exit procedures, asset distribution, and dispute resolution mechanisms
• Governing Law: Express choice of Indonesian law and jurisdiction for dispute resolution

A Joint Venture Agreement differs significantly from a Joint Venture Shareholders' Agreement in Indonesian business law. While both deal with business partnerships, they serve distinct purposes and come into play at different stages of collaboration.

• Scope and Purpose: Joint Venture Agreements establish the foundation of the partnership and operational framework, while Shareholders' Agreements focus specifically on share ownership rights and governance
• Timing of Use: JV Agreements come first, creating the venture itself, whereas Shareholders' Agreements follow after company formation
• Legal Focus: JV Agreements cover broader operational aspects like capital, management, and profit sharing, while Shareholders' Agreements concentrate on share transfers, voting rights, and dividend policies
• Regulatory Compliance: JV Agreements must address Indonesian foreign investment rules, while Shareholders' Agreements align with Indonesian Company Law requirements for PT entities