Document background
The Asset Purchase Term Sheet is a crucial preliminary document used in Indonesian business transactions when parties are contemplating the purchase and sale of specific assets rather than shares or an entire business. It serves as a roadmap for the transaction, documenting the parties' initial understanding of key commercial terms while providing a framework for further negotiation and due diligence. Under Indonesian law, while most provisions are non-binding, the document carries significant commercial weight and often includes certain binding provisions such as confidentiality and exclusivity. It's particularly important in the Indonesian context where foreign investment regulations, currency controls, and sector-specific requirements may significantly impact transaction structure. The term sheet typically precedes more detailed due diligence and the drafting of definitive agreements, helping parties align on fundamental terms before incurring substantial transaction costs.
