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Equipment Hire Agreement for Indonesia

Equipment Hire Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for the temporary hire of equipment between an owner (lessor) and a hirer (lessee). The document covers essential aspects including rental terms, payment obligations, maintenance responsibilities, insurance requirements, and liability allocation, while ensuring compliance with Indonesian civil code and relevant regulations. It provides legal protection for both parties and clearly defines their rights and obligations throughout the hire period, including delivery, usage, maintenance, and return conditions.

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What is a Equipment Hire Agreement?

The Equipment Hire Agreement is a crucial legal document used when one party (lessor) agrees to rent out equipment to another party (lessee) for a specified period in Indonesia. This document is essential for businesses that need temporary access to expensive or specialized equipment without the capital investment of purchasing. The agreement must comply with Indonesian civil law, particularly the Indonesian Civil Code (KUHPerdata) and relevant OJK regulations. It typically includes detailed specifications of the equipment, rental terms, payment schedules, maintenance responsibilities, insurance requirements, and conditions for return. The document is particularly important in industries such as construction, mining, and manufacturing, where equipment hiring is common practice. It helps prevent disputes by clearly outlining each party's rights and obligations, including provisions for equipment maintenance, breakdown procedures, and liability allocation.

What sections should be included in a Equipment Hire Agreement?

1. Parties: Identification of the equipment owner (Lessor) and hirer (Lessee), including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of the business relationship and purpose of the equipment hire

3. Definitions: Definitions of key terms used throughout the agreement, including technical terms related to the equipment

4. Equipment Details: General description of the equipment being hired, referring to detailed specifications in the schedule

5. Term and Delivery: Duration of the hire period, delivery arrangements, and conditions for extension

6. Rental Payments: Payment terms, rental amounts, payment schedule, and late payment consequences

7. Use of Equipment: Permitted use, restrictions, and operational requirements for the equipment

8. Maintenance and Repairs: Responsibilities for maintenance, repairs, and replacement of parts

9. Insurance and Risk: Insurance requirements and allocation of risk between parties

10. Termination: Grounds for termination, notice requirements, and consequences of termination

11. Return of Equipment: Conditions and procedures for returning equipment at end of hire period

12. Governing Law: Specification of Indonesian law as governing law and jurisdiction

13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Equipment Hire Agreement?

1. Purchase Option: Include when the hirer has the option to purchase the equipment at the end of the hire period

2. Subletting: Include when subletting of equipment is permitted under specific conditions

3. Training and Support: Include when the lessor provides training or technical support for complex equipment

4. Import/Export: Include when equipment will cross international borders

5. Environmental Compliance: Include for equipment that has environmental impact or requires specific environmental permits

6. Operator Requirements: Include when specific qualifications or licenses are required to operate the equipment

7. Force Majeure: Include when parties want specific provisions for unforeseen circumstances affecting equipment use

What schedules should be included in a Equipment Hire Agreement?

1. Schedule 1 - Equipment Specifications: Detailed technical specifications, model numbers, and condition report of equipment

2. Schedule 2 - Rental Payment Schedule: Detailed breakdown of rental payments, including dates and amounts

3. Schedule 3 - Maintenance Schedule: Required maintenance intervals and procedures

4. Schedule 4 - Insurance Requirements: Specific insurance coverage requirements and minimum values

5. Schedule 5 - Delivery and Collection Details: Specific arrangements for delivery and collection, including locations and timing

6. Appendix A - Equipment Photos: Photographic evidence of equipment condition at commencement of hire

7. Appendix B - Operating Instructions: Manufacturer's manual or operating instructions for the equipment

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

Construction

Mining

Manufacturing

Agriculture

Logistics

Infrastructure Development

Oil and Gas

Telecommunications

Events and Entertainment

Warehouse and Storage

Transportation

Industrial Processing

Maritime and Shipping

Relevant Teams

Legal

Procurement

Operations

Finance

Risk Management

Compliance

Supply Chain

Asset Management

Project Management

Commercial

Maintenance

Relevant Roles

Procurement Manager

Operations Director

Fleet Manager

Legal Counsel

Contract Administrator

Project Manager

Site Supervisor

Equipment Manager

Risk Manager

Finance Director

Commercial Manager

Maintenance Manager

Supply Chain Manager

Chief Operating Officer

Compliance Officer

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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