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Business Lease Agreement for Indonesia

Business Lease Agreement Template for Indonesia

This document is a comprehensive commercial lease agreement governed by Indonesian law, specifically designed for business premises. It establishes the legal relationship between a landlord and a business tenant, outlining the terms and conditions for the commercial use of property in Indonesia. The agreement incorporates requirements from the Indonesian Civil Code (KUHPerdata) and relevant property regulations, addressing key aspects such as rental terms, maintenance obligations, permitted use, and compliance with local business regulations. The document is structured to protect both parties' interests while ensuring compliance with Indonesian commercial property laws and local business requirements.

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What is a Business Lease Agreement?

The Business Lease Agreement serves as a crucial legal instrument for commercial property transactions in Indonesia. It is essential when a business entity seeks to lease commercial space for operations, whether for retail, office, or industrial purposes. The document must comply with Indonesian property laws, including the Civil Code (KUHPerdata) and Law No. 28 of 2002 on Buildings. This agreement type is particularly important in Indonesia's growing commercial real estate sector, where clear documentation of rights, obligations, and terms is crucial for both local and foreign businesses. The Business Lease Agreement includes comprehensive provisions covering rental terms, maintenance responsibilities, permitted use clauses, and other essential commercial terms, while ensuring alignment with local regulatory requirements and business practices.

What sections should be included in a Business Lease Agreement?

1. Parties: Identification and details of the Landlord and Tenant, including registration numbers for businesses

2. Background: Context of the lease arrangement and brief description of the property

3. Definitions: Defined terms used throughout the agreement

4. Property Description: Detailed description of the leased premises, including address and boundaries

5. Lease Term: Duration of the lease, commencement date, and termination date

6. Rent and Payment Terms: Rental amount, payment schedule, and method of payment

7. Security Deposit: Amount, terms, and conditions for the security deposit

8. Permitted Use: Specified business activities allowed on the premises

9. Maintenance and Repairs: Responsibilities of each party for property maintenance and repairs

10. Utilities and Services: Responsibility for utility payments and essential services

11. Insurance Requirements: Mandatory insurance coverage for both parties

12. Default and Remedies: Consequences of breach and available remedies

13. Termination: Conditions and procedures for early termination

14. Governing Law: Application of Indonesian law and jurisdiction

15. Notices: Method and addresses for official communications

16. Execution: Signature blocks and execution requirements

What sections are optional to include in a Business Lease Agreement?

1. Renewal Options: Terms for lease renewal, used when automatic renewal is offered

2. Subletting and Assignment: Rights and restrictions regarding subletting, included when subletting might be permitted

3. Alterations and Improvements: Terms for making changes to the property, included when significant modifications are anticipated

4. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in uncertain times

5. Environmental Compliance: Special environmental requirements, included for industrial or sensitive properties

6. Parking: Specific parking rights and restrictions, included when parking is a significant feature

7. Signage Rights: Terms for external and internal signage, important for retail businesses

8. Common Areas: Rights and obligations regarding shared spaces, included for multi-tenant buildings

9. Building Rules: Specific building regulations, included for properties with strict operational rules

10. Foreign Investment Provisions: Special terms for foreign tenants, included when the tenant is a foreign entity

What schedules should be included in a Business Lease Agreement?

1. Schedule 1 - Property Floor Plan: Detailed plans showing the leased area and measurements

2. Schedule 2 - Inventory List: List of fixtures, fittings, and equipment included in the lease

3. Schedule 3 - Service Charges: Breakdown of additional charges and maintenance fees

4. Schedule 4 - Building Rules and Regulations: Detailed operational rules and procedures

5. Schedule 5 - Fit-out Guidelines: Specifications for tenant improvements and modifications

6. Schedule 6 - Handover Protocol: Procedures and checklist for property handover

7. Appendix A - Required Permits: List of necessary business and operational permits

8. Appendix B - Maintenance Schedule: Regular maintenance responsibilities and schedules

9. Appendix C - Insurance Requirements: Detailed insurance specifications and coverage requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Rental Agreement

Cost

Free to use
Relevant legal definitions

































Clauses






























Relevant Industries

Retail

Office Space

Industrial

Hospitality

Food and Beverage

Healthcare

Education

Technology

Manufacturing

Warehousing

Professional Services

Entertainment

Relevant Teams

Legal

Finance

Operations

Facilities Management

Risk and Compliance

Real Estate

Business Development

Corporate Affairs

Property Management

Administrative Services

Relevant Roles

Legal Counsel

Property Manager

Business Development Manager

Operations Director

Chief Financial Officer

Facilities Manager

Real Estate Manager

Compliance Officer

Commercial Director

Risk Manager

Corporate Secretary

Finance Director

Business Owner

Branch Manager

Regional Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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