Development Agreement Template for Indonesia

A Development Agreement outlines how two or more parties will work together to create something new - like a property project, software system, or infrastructure asset in Indonesia. It spells out each party's responsibilities, timelines, costs, and what they'll deliver.

These agreements are especially important under Indonesian investment law, as they protect both local and foreign developers while ensuring compliance with regional regulations. Good Development Agreements cover key details like permits, land rights, profit sharing, and dispute resolution methods - making them essential tools for major construction and development projects across the archipelago.

Use a Development Agreement when starting any major construction or development project in Indonesia that involves multiple parties - especially for commercial buildings, infrastructure works, or large residential developments. This becomes crucial when working with foreign investors or when the project requires specific government permits and approvals.

The agreement provides essential protection during complex, long-term projects where significant capital is at stake. It's particularly valuable for developments in special economic zones, industrial estates, or tourism areas where Indonesian investment laws impose specific requirements. Having this agreement in place helps prevent disputes and ensures smooth project execution.

• App Development Contract: Focuses on mobile app creation, covering development milestones, testing requirements, and app store deployment specifics.
• Software Development Service Agreement: Broader in scope, covering complex software projects with detailed service levels and maintenance terms.
• Web Developer Contract: Specialized for website development, including hosting, domain management, and content integration requirements.
• Software Developer Contract: Focuses on hiring individual developers, outlining code ownership, technical specifications, and delivery schedules.

• Property Developers: Lead the development process and typically initiate the agreement, including both local Indonesian companies and foreign investors with proper licenses.
• Government Agencies: Review and approve development plans, issue permits, and ensure compliance with Indonesian spatial planning laws.
• Legal Counsel: Draft and review agreements to ensure protection of all parties' interests and compliance with Indonesian investment regulations.
• Financial Institutions: Provide project funding and require Development Agreements as part of their due diligence process.
• Construction Companies: Execute the physical development work and must comply with agreement specifications.

• Project Details: Gather complete scope, timeline, deliverables, and budget information for the development project.
• Party Information: Collect legal names, registration numbers, and authorized representatives of all involved parties.
• Permits & Licenses: List required Indonesian government approvals, building permits, and environmental clearances.
• Land Documents: Prepare land certificates, zoning permits, and proof of ownership or right to develop.
• Financial Terms: Define payment schedules, profit-sharing arrangements, and funding mechanisms.
• Digital Template: Use our platform to generate a legally-sound Development Agreement that meets Indonesian requirements.

• Identification Section: Full legal names, addresses, and registration numbers of all parties under Indonesian law.
• Project Scope: Detailed description of development work, specifications, and deliverables.
• Timeline & Milestones: Clear project phases, completion dates, and progress monitoring methods.
• Financial Terms: Payment schedules, development costs, and profit-sharing arrangements in Indonesian Rupiah.
• Regulatory Compliance: References to relevant Indonesian building codes and environmental regulations.
• Dispute Resolution: Specific Indonesian court jurisdiction or arbitration procedures.
• Force Majeure: Events beyond control, including natural disasters common in Indonesia.

Development Agreements differ significantly from Community Development Agreements in Indonesian legal practice. While both involve development projects, their scope, parties, and purposes serve distinct needs.

• Primary Focus: Development Agreements center on commercial property or infrastructure projects between developers and investors, while Community Development Agreements address social impact and community benefits from business operations.
• Parties Involved: Development Agreements typically involve developers, investors, and government agencies. Community Development Agreements are between companies and local communities or indigenous groups.
• Legal Requirements: Development Agreements must comply with Indonesian investment and construction laws, while Community Development Agreements follow social responsibility and environmental regulations.
• Duration and Scope: Development Agreements cover specific project timelines and deliverables, whereas Community Development Agreements often involve ongoing, long-term commitments to community welfare.