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Legal Lease Agreement for Indonesia

Legal Lease Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes the terms and conditions for the lease of real property in Indonesia. This agreement is structured in accordance with the Indonesian Civil Code (KUHPerdata) and relevant property regulations, incorporating specific provisions required under Indonesian law. The document details the rights and obligations of both lessor and lessee, including rent payment terms, property usage conditions, maintenance responsibilities, and dispute resolution procedures, while ensuring compliance with local property regulations and tenant protection laws.

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What is a Legal Lease Agreement?

The Legal Lease Agreement serves as a fundamental document for establishing property rental relationships in Indonesia, whether for commercial, residential, or industrial purposes. This document is essential when any party wishes to lease real property in Indonesia, ensuring compliance with the Indonesian Civil Code (KUHPerdata), Basic Agrarian Law, and relevant regional regulations. The agreement covers crucial aspects such as property rights, rental terms, maintenance obligations, and dispute resolution mechanisms, while incorporating specific requirements under Indonesian property law. It's particularly important as it provides legal protection for both lessors and lessees, establishing clear rights and responsibilities while ensuring adherence to local property regulations and zoning requirements.

What sections should be included in a Legal Lease Agreement?

1. Parties: Identification of the lessor and lessee, including complete legal names, addresses, and any relevant registration numbers

2. Background: Context of the lease agreement, including brief description of the property and parties' intention to enter into a lease arrangement

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

4. Property Details: Comprehensive description of the leased property, including address, boundaries, and certificate details as per Indonesian land registration

5. Lease Term: Duration of the lease, including commencement and expiration dates, and any renewal options

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

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

8. Use of Property: Permitted uses of the property and any restrictions as per Indonesian zoning laws

9. Maintenance and Repairs: Responsibilities of both parties regarding property maintenance and repairs

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

11. Insurance: Required insurance coverage and responsibilities of each party

12. Default and Termination: Conditions constituting default and procedures for termination

13. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional details

14. Dispute Resolution: Process for resolving disputes, including mediation and court jurisdiction

15. Notices: Method and addresses for official communications between parties

16. Execution: Signature requirements and execution formalities as per Indonesian law

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

1. Subletting and Assignment: Terms for subletting or assigning the lease, used when such arrangements might be permitted

2. Fit-out Works: Specifications for any modifications or improvements, particularly relevant for commercial properties

3. Operating Hours: For commercial properties, specifying permitted hours of operation

4. Common Areas: Rules for shared facilities, relevant for properties in multi-tenant buildings

5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant given Indonesia's natural disaster risk

6. Environmental Compliance: Environmental obligations, particularly important for industrial or commercial properties

7. Building Management: Rules relating to building management, relevant for properties in managed complexes

8. Parking: Parking rights and restrictions, relevant for properties with parking facilities

9. Service Charge: Additional charges for building services, relevant for commercial properties or apartments

What schedules should be included in a Legal Lease Agreement?

1. Property Floor Plan: Detailed floor plan and measurements of the leased property

2. Inventory List: List of fixtures, fittings, and furniture included in the lease

3. Condition Report: Detailed report on the condition of the property at lease commencement

4. Building Rules: Specific rules and regulations of the building or complex

5. Payment Schedule: Detailed breakdown of rent, security deposit, and other payment obligations

6. Maintenance Schedule: Schedule of regular maintenance responsibilities

7. Fit-out Specifications: Technical specifications for any permitted modifications

8. Required Permits: List of necessary permits and licenses for property use

9. 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

Real Estate

Retail

Commercial Office

Industrial

Hospitality

Residential Property

Manufacturing

Warehouse and Logistics

Education

Healthcare

Agriculture

Mining

Technology

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Risk Management

Administrative

Property Management

Business Development

Procurement

Relevant Roles

Legal Counsel

Property Manager

Real Estate Manager

Facilities Manager

Corporate Counsel

Operations Director

Chief Financial Officer

Asset Manager

Business Development Manager

Compliance Officer

Real Estate Agent

Property Administrator

Contract Manager

Risk Manager

Branch Manager

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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