Equipment Hire Agreement Template for Indonesia

An Equipment Hire Agreement lets businesses temporarily use equipment without buying it outright. In Indonesia, these contracts spell out who owns the equipment, how long it can be used, and what it costs - following guidelines from the Indonesian Civil Code (KUHPerdata) on rental arrangements.

The agreement protects both parties by clearly stating maintenance responsibilities, insurance requirements, and payment terms. It's especially common in construction, manufacturing, and event management sectors where companies need specialized machinery or tools for specific projects. Under Indonesian law, these agreements must be in writing when the rental period exceeds one year.

Use an Equipment Hire Agreement when your business needs temporary access to specialized machinery or equipment without the full cost of purchasing. This is particularly relevant for Indonesian construction companies, event organizers, or manufacturers who need specific tools for short-term projects or seasonal work.

The agreement becomes essential when renting high-value equipment where clear documentation of maintenance duties, liability, and payment terms can prevent costly disputes. Indonesian law requires written agreements for equipment rentals lasting more than 12 months, and having one in place helps secure insurance coverage and comply with local safety regulations.

• Short Term Equipment Rental Agreement: Used for rentals under 12 months, with simplified terms and flexible payment structures
• Equipment Hire Contract: Comprehensive agreement for long-term industrial equipment rentals, including detailed maintenance schedules
• Music Equipment Rental Contract: Specialized for audio gear rentals, with specific handling and liability provisions
• Sound System Rental Contract: Tailored for professional sound equipment, including technical specifications and operator requirements

• Equipment Owners/Rental Companies: Business entities who own and lease out equipment, responsible for maintenance schedules and ensuring equipment meets safety standards
• Hirers/Renters: Companies or individuals who need temporary access to equipment, responsible for proper use and timely payments
• Legal Counsel: Draft and review Equipment Hire Agreements to ensure compliance with Indonesian rental laws and protect client interests
• Insurance Providers: Offer coverage for rented equipment and verify agreement terms meet policy requirements
• Operations Managers: Oversee equipment deployment, monitor usage, and ensure compliance with rental terms

• Equipment Details: List exact specifications, model numbers, and current condition with photos or documentation
• Rental Terms: Define the rental period, payment schedule, and deposit requirements in Indonesian Rupiah
• Usage Parameters: Specify permitted locations, operators, and any restrictions on equipment use
• Insurance Coverage: Gather proof of insurance and liability coverage details from both parties
• Maintenance Plan: Document responsibilities for routine maintenance, repairs, and emergency procedures
• Compliance Check: Verify alignment with Indonesian Civil Code requirements for equipment rentals
• Contact Information: Include complete details for all parties, including emergency contacts

• Party Details: Full legal names, addresses, and registration numbers of equipment owner and hirer
• Equipment Description: Detailed specifications, serial numbers, and current condition documentation
• Rental Terms: Duration, payment schedule, deposit requirements in Indonesian Rupiah
• Usage Rights: Permitted locations, authorized operators, and specific use limitations
• Maintenance Obligations: Scheduled maintenance, repair responsibilities, and cost allocation
• Insurance Requirements: Mandatory coverage types and minimum coverage amounts
• Termination Clauses: Conditions for early termination and equipment return procedures
• Dispute Resolution: Jurisdiction choice and Indonesian arbitration provisions

An Equipment Hire Agreement differs significantly from an Equipment Lease Agreement in several key aspects under Indonesian law. While both involve temporary use of equipment, they serve different business needs and carry distinct legal implications.

• Duration: Hire agreements typically cover shorter periods (days to months) with more flexible terms, while lease agreements usually span longer terms (1+ years) with stricter conditions
• Maintenance Responsibility: Hire agreements usually place maintenance duties on the owner, whereas lease agreements often transfer these responsibilities to the lessee
• Payment Structure: Hire agreements feature simpler, short-term payment arrangements, while leases often include complex payment schedules and potential purchase options
• Legal Treatment: Under Indonesian Civil Code, hire agreements face fewer regulatory requirements compared to leases, which may require registration for longer terms