Auto Lease Agreement Template for Indonesia

The Auto Lease Agreement serves as a comprehensive legal framework for vehicle leasing transactions in Indonesia, governed by Indonesian law and regulated by the Financial Services Authority (OJK). This document is essential when a lessor (typically a leasing company or financial institution) agrees to lease a motor vehicle to a lessee (either an individual or corporate entity) for a specified period in exchange for regular lease payments. The agreement incorporates requirements from various Indonesian regulations, including the Civil Code, Financial Services Authority regulations, and consumer protection laws. It covers crucial aspects such as vehicle specifications, lease terms, payment schedules, maintenance responsibilities, insurance requirements, and return conditions. This document is particularly important in the Indonesian market where vehicle leasing is a common financing alternative to direct purchase, especially for corporations managing vehicle fleets and individuals seeking flexible vehicle usage arrangements.

1. Parties: Identification of the lessor (leasing company) and lessee (customer), including complete legal names, addresses, and registration numbers

2. Background: Context of the agreement, including the lessor's authority to lease vehicles and the lessee's intention to lease

3. Definitions: Definitions of key terms used throughout the agreement, including technical and financial terms

4. Lease Term: Duration of the lease, including commencement and termination dates

5. Delivery and Acceptance: Terms regarding vehicle delivery, inspection, and acceptance procedures

6. Lease Payments: Payment terms, including monthly lease amounts, payment schedule, and payment methods

7. Security Deposit: Details of required security deposit, conditions for return, and permitted deductions

8. Insurance Requirements: Mandatory insurance coverage, responsibility for insurance premiums, and claims procedures

9. Maintenance and Repairs: Responsibilities for vehicle maintenance, repair procedures, and cost allocation

10. Vehicle Usage Conditions: Permitted use of vehicle, geographical limitations, and driver requirements

11. Ownership and Registration: Confirmation of lessor's ownership, registration requirements, and related obligations

12. Default and Remedies: Events of default, cure periods, and available remedies

13. Early Termination: Conditions and procedures for early termination, including associated costs

14. Return of Vehicle: Conditions for vehicle return, wear and tear standards, and inspection procedures

15. Indemnification: Mutual indemnification obligations and liability limitations

16. Governing Law: Application of Indonesian law and jurisdiction

17. Notices: Methods and addresses for formal communications between parties

18. General Provisions: Standard boilerplate provisions including amendments, assignment, and severability