Aircraft Purchase Agreement Template for Indonesia

The Aircraft Purchase Agreement is a crucial document used when transferring ownership of aircraft in Indonesia, whether for commercial airlines, private operators, or corporate entities. It must comply with Indonesian Aviation Law (Law No. 1 of 2009) and related regulations, while also addressing commercial aspects of the transaction. The agreement covers essential elements including aircraft specifications, purchase price, payment terms, delivery conditions, warranties, and regulatory compliance requirements. It's particularly important in the Indonesian context due to specific local aviation regulations, registration requirements, and foreign investment rules that may apply. The document typically includes detailed schedules for technical specifications, delivery conditions, and required documentation, ensuring all aspects of the aircraft transfer are properly documented and legally compliant.

1. Parties: Identification of the seller and buyer, including their complete legal names, registration numbers, and addresses

2. Background: Context of the transaction, including brief description of the aircraft and the parties' intention to enter into a sale and purchase arrangement

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

4. Sale and Purchase: Core agreement for the sale and purchase of the aircraft, including the basic commercial terms

5. Purchase Price: Detailed breakdown of the purchase price, payment schedule, and payment methods

6. Conditions Precedent: Conditions that must be satisfied before the completion of the sale

7. Pre-Delivery Inspection: Rights and procedures for aircraft inspection before delivery

8. Delivery and Acceptance: Terms and procedures for aircraft delivery and acceptance, including location and timing

9. Title and Risk: Transfer of title and risk provisions

10. Representations and Warranties: Warranties and representations from both parties regarding the aircraft and their capacity to enter into the agreement

11. Regulatory Compliance: Compliance requirements with Indonesian aviation regulations and other applicable laws

12. Taxes and Costs: Allocation of taxes, duties, and other costs related to the transaction

13. Insurance: Insurance requirements during delivery and transfer process

14. Termination: Circumstances under which the agreement can be terminated and consequences

15. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes

16. Notices: Process and requirements for formal communications between parties

17. Miscellaneous: Standard boilerplate provisions including entire agreement, amendments, and severability