Car Lease Agreement Template for Indonesia

The Car Lease Agreement serves as the primary legal instrument for documenting vehicle leasing arrangements in Indonesia. This document is essential when a party wishes to obtain the use of a vehicle without purchasing it outright, whether for personal or business purposes. The agreement must comply with Indonesian legal requirements, including the Civil Code (KUHPerdata), Law No. 22 of 2009 on Traffic and Road Transportation, and consumer protection regulations. It covers crucial aspects such as vehicle specifications, lease duration, payment terms, maintenance responsibilities, insurance requirements, and liability allocation. The document is particularly important in Indonesia's growing automotive and transportation sectors, where vehicle leasing has become increasingly popular as an alternative to outright purchase. It provides legal protection for both lessors and lessees while ensuring adherence to local regulatory requirements.

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

2. Background: Context of the agreement, including the intent to lease a vehicle and basic commercial understanding

3. Definitions: Key terms used throughout the agreement including 'Vehicle', 'Lease Term', 'Monthly Rental', 'Security Deposit', etc.

4. Vehicle Description: Detailed specification of the leased vehicle including make, model, year, color, VIN, and registration number

5. Lease Term and Rental Payments: Duration of lease, payment amounts, payment schedule, and payment methods

6. Security Deposit: Amount, terms, and conditions for return of the security deposit

7. Vehicle Delivery and Return: Conditions for vehicle handover and return, including inspection procedures

8. Use of Vehicle: Permitted uses, territorial limits, and restrictions on vehicle usage

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

10. Insurance Requirements: Mandatory insurance coverage and responsibilities for insurance costs

11. Liability and Indemnification: Allocation of risks and responsibilities between parties

12. Default and Termination: Events of default, remedies, and termination procedures

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

14. Notices: Method and addresses for formal communications between parties

15. Signatures: Execution block for parties to sign the agreement