This 12 Month Lease Agreement is essential for formalizing rental arrangements in Indonesia, whether for residential or commercial properties. It serves as a legally binding document between landlords and tenants, incorporating all necessary provisions required under Indonesian law, including the Civil Code (KUHPerdata) and Law No. 1 of 2011 on Housing and Settlement Areas. The agreement should be used whenever a fixed-term rental arrangement is needed, providing comprehensive coverage of rent payments, maintenance obligations, security deposits, and other essential terms. It includes specific provisions for property registration, tax compliance, and local regulatory requirements, making it suitable for both domestic and foreign parties involved in Indonesian property rentals.

1. Parties: Identification of the landlord and 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: Detailed description of the leased property including address and boundaries

5. Term and Commencement: Specification of the 12-month lease period and start date

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 Services: Responsibility for utility payments and included services

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

10. Use of Property: Permitted uses of the property and restrictions

11. Tenant's Obligations: List of tenant responsibilities and commitments

12. Landlord's Obligations: List of landlord responsibilities and commitments

13. Insurance: Required insurance coverage for both parties

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

15. Termination: Conditions and process for ending the lease

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

17. Notices: Process for formal communications between parties

18. Signatures: Execution block for all parties