Shared Use Agreement Template for Indonesia

A Shared Use Agreement sets out the terms for multiple parties to jointly use a facility, property, or resource in Indonesia. Common in infrastructure projects and commercial developments, these agreements spell out how different organizations can share everything from office spaces to telecommunications networks while respecting each party's rights.

Under Indonesian law, particularly Law No. 2/2012 on Land Procurement, these agreements help maximize resource efficiency and reduce costs. They detail scheduling, maintenance responsibilities, cost-sharing formulas, and liability arrangements. Local governments often use them for public facilities, while private businesses rely on them for shared commercial spaces or equipment.

Consider implementing a Shared Use Agreement when your organization plans to share physical spaces, equipment, or infrastructure with other parties in Indonesia. This proves especially valuable for office buildings, telecommunications towers, warehouses, or transportation facilities where multiple companies need reliable access to the same assets.

These agreements become essential when sharing arrangements involve significant investments or complex operations. Indonesian regulations, particularly in sectors like telecommunications and commercial real estate, often require formal documentation of shared-use arrangements. Getting this agreement in place early helps prevent disputes, clarifies maintenance responsibilities, and creates a clear framework for cost sharing.

• Basic Property Sharing: Most common in commercial real estate, these agreements focus on shared spaces, utilities, and maintenance costs between multiple tenants
• Infrastructure Co-Use: Popular among telecommunications companies in Indonesia, covering shared tower usage, equipment placement, and access schedules
• Public-Private Partnerships: Used when government facilities or infrastructure are shared with private entities, including detailed liability and public interest provisions
• Industrial Facility Sharing: Common in manufacturing zones, detailing equipment usage, safety protocols, and cost allocation between multiple businesses

• Property Owners: Draft and enforce Shared Use Agreements to maximize asset utilization while protecting their rights and interests
• Corporate Tenants: Review and negotiate terms to ensure fair access to shared facilities and clear cost allocation formulas
• Government Agencies: Oversee agreements involving public infrastructure and ensure compliance with Indonesian regulations
• Legal Counsel: Draft and review agreements to protect client interests and ensure alignment with local property laws
• Facility Managers: Implement and monitor daily operations according to agreement terms, managing schedules and maintenance

• Asset Details: Document specific facilities, equipment, or spaces to be shared, including exact locations and access points
• Usage Schedule: Map out time allocations, peak usage periods, and coordination procedures between parties
• Cost Structure: Calculate maintenance costs, utilities, and how expenses will be divided among users
• Legal Requirements: Check Indonesian property laws and local regulations affecting shared facility use
• Party Information: Gather complete legal names, registration numbers, and authorized signatories of all involved parties
• Insurance Coverage: Determine liability arrangements and required insurance policies for shared spaces

• Party Identification: Full legal names, addresses, and registration numbers of all involved entities
• Asset Description: Detailed specification of shared facilities, including exact locations and boundaries
• Usage Rights: Clear terms outlining access schedules, permitted activities, and usage limitations
• Cost Allocation: Specific formulas for sharing operational expenses and maintenance costs
• Dispute Resolution: Indonesian law-compliant arbitration or mediation procedures
• Term and Termination: Agreement duration, renewal options, and grounds for early termination
• Force Majeure: Provisions addressing unforeseen circumstances under Indonesian civil code

A Shared Use Agreement differs significantly from a Shared Facilities Agreement, though they may seem similar at first glance. While both deal with shared resources, their scope and application vary considerably under Indonesian law.

• Scope of Coverage: Shared Use Agreements focus on the operational aspects of sharing any resource or asset, while Shared Facilities Agreements specifically address physical infrastructure and building amenities
• Legal Structure: Shared Use Agreements offer more flexibility in terms and conditions, suitable for various sharing arrangements. Shared Facilities Agreements typically follow stricter building management regulations
• Cost Allocation: Shared Use Agreements often include variable cost-sharing formulas based on actual usage, whereas Shared Facilities Agreements usually involve fixed cost distributions based on space occupation
• Duration and Flexibility: Shared Use Agreements can be short-term or project-based, while Shared Facilities Agreements generally run longer term with building leases