This 1 Year Lease Agreement is essential for establishing legally binding rental arrangements in Indonesia. It serves as a standardized template for both residential and commercial property leases, ensuring compliance with Indonesian civil law, particularly the Civil Code (KUH Perdata) and Law No. 1 of 2011 on Housing and Settlement Areas. The document is designed to protect both landlord and tenant interests by clearly defining property usage rights, maintenance responsibilities, payment terms, and conditions for security deposit handling. It includes mandatory provisions required under Indonesian law while maintaining flexibility to accommodate specific property requirements and local regulations. This agreement type is commonly used for both residential rentals and business premises, providing a secure legal framework for short-term lease arrangements.

1. Parties: Identification of the lessor (landlord) and lessee (tenant) with complete legal names and addresses

2. Background: Context of the lease agreement and brief description of the property

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Details: Comprehensive description of the leased property including address and specifications

5. Term and Commencement: Duration of lease (1 year) and specific start and end dates

6. Rent and Payment Terms: Rental amount, payment schedule, and payment methods

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

8. Utilities and Service Charges: Responsibility for utility payments and other service charges

9. Use of Property: Permitted uses of the property and any restrictions

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

11. Tenant's Obligations: Key responsibilities and obligations of the tenant

12. Landlord's Obligations: Key responsibilities and obligations of the landlord

13. Insurance: Required insurance coverage for both parties

14. Default and Remedies: Consequences of breach and available remedies

15. Termination: Conditions and process for termination of the lease

16. Governing Law: Specification of Indonesian law as governing law

17. Signatures: Execution section for both parties