Document background
The Business Acquisition Agreement serves as the primary transaction document for business acquisitions in Indonesia, whether structured as asset or share purchases. It must comply with Indonesian legal framework, particularly Law No. 40 of 2007 on Limited Liability Companies and Law No. 25 of 2007 on Investment. The agreement is essential for documenting the transfer of business ownership, establishing parties' rights and obligations, and ensuring regulatory compliance, including foreign ownership restrictions and competition law requirements. It includes detailed provisions on purchase price mechanisms, warranties, indemnities, conditions precedent, and completion requirements, while accommodating sector-specific regulations and mandatory Indonesian law provisions. The document is crucial for both domestic and cross-border transactions, requiring careful consideration of local business practices and regulatory requirements.
