Allotment Agreement Template for Indonesia

The Allotment Agreement is a key document used in Indonesian property development and land management contexts when parcels of land need to be formally allocated between parties for development purposes. This document type is particularly relevant when large land areas are being subdivided for development, whether for residential, commercial, or industrial purposes. The agreement must comply with Indonesian property law, including the Basic Agrarian Law and various regional regulations governing land use and development. It typically includes detailed specifications about the land being allocated, development requirements, timelines, payment terms, and obligations of all parties involved. An Allotment Agreement is essential for ensuring legal certainty in property development projects and typically precedes actual development activities, serving as a foundation for subsequent construction and development agreements.

1. Parties: Identification of the landowner/developer and allottee, including their complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, including brief description of the land, development project, and purpose of the allotment

3. Definitions: Definitions of key terms used throughout the agreement, including technical terms related to land development and allotment

4. Land Details: Detailed description of the land being allotted, including certificate numbers, boundaries, and total area

5. Allotment Terms: Core terms of the allotment, including size, location, and purpose of the allotted portion

6. Payment Terms: Details of payment structure, including purchase price, installments, payment schedule, and payment methods

7. Development Obligations: Obligations regarding development of the land, including timelines and standards

8. Representations and Warranties: Standard representations and warranties from both parties regarding authority, ownership, and compliance

9. Conditions Precedent: Conditions that must be satisfied before the agreement becomes fully effective

10. Completion and Handover: Process and requirements for completion of development and handover of the allotted land

11. Default and Remedies: Consequences of default by either party and available remedies

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

13. Governing Law and Dispute Resolution: Applicable law and mechanism for resolving disputes

14. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement