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The Land License Agreement is a crucial document used in Indonesia when a party seeks to obtain rights to use land for specific purposes without full ownership transfer. This agreement type is particularly important given Indonesia's unique land rights system under the Basic Agrarian Law (UUPA), which distinguishes between land ownership and various forms of land use rights. The document is commonly used for commercial, industrial, or agricultural purposes and must comply with both national and regional regulations. It typically includes detailed provisions on land use restrictions, duration of rights, payment terms, and compliance requirements with local spatial planning laws. The agreement is especially relevant when dealing with various land rights categories in Indonesia such as Hak Guna Usaha (HGU), Hak Guna Bangunan (HGB), or Hak Pakai (HP), and requires careful consideration of environmental regulations and community rights where applicable.

1. Parties: Identification of the licensor (landowner) and licensee, including their complete legal names, addresses, and registration details

2. Background: Context of the agreement, including brief description of the land and the parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement, including technical and legal terms

4. Grant of License: Specific details of the license being granted, including scope, purpose, and any restrictions

5. Term and Renewal: Duration of the license, commencement date, and any renewal options

6. License Fee and Payment Terms: Amount, payment schedule, method of payment, and review mechanisms for the license fee

7. Rights and Obligations of the Licensor: Detailed responsibilities and commitments of the landowner

8. Rights and Obligations of the Licensee: Detailed responsibilities and commitments of the license holder

9. Land Use Conditions: Specific conditions and restrictions on how the land may be used

10. Compliance with Laws: Requirements to comply with relevant Indonesian laws and regulations

11. Insurance and Liability: Insurance requirements and allocation of risks between parties

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

13. Force Majeure: Provisions for unforeseen circumstances affecting performance of the agreement

14. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

15. Notices: How formal communications between parties should be made and delivered

16. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability