Commercial Lease Contract Template for Indonesia

A commercial lease contract under Indonesian law is a legally binding agreement that governs the rental of commercial property between a landlord (lessor) and tenant (lessee). This document is structured in accordance with Indonesian Civil Code (KUHPerdata) requirements and incorporates relevant provisions from Law No. 28 of 2002 on Buildings and other applicable regulations. The contract details all essential elements of the commercial tenancy, including premises description, rental terms, maintenance obligations, permitted use, and compliance requirements specific to Indonesian commercial property law.

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What is a Commercial Lease Contract?

The Commercial Lease Contract is a fundamental document used in Indonesian business transactions for establishing and managing commercial property rental relationships. It is essential when a business or individual wishes to lease commercial space in Indonesia, whether for retail, office, industrial, or other commercial purposes. The document must comply with Indonesian Civil Code requirements and relevant property regulations, including Law No. 28 of 2002 on Buildings and local spatial planning regulations. This contract type typically includes comprehensive provisions covering rental terms, property use restrictions, maintenance responsibilities, security deposits, and dispute resolution mechanisms, all tailored to meet Indonesian legal requirements and commercial practices.

What sections should be included in a Commercial Lease Contract?

1. Parties: Identification of the lessor and lessee, including complete legal names, addresses, and registration numbers for companies

2. Background: Context of the lease agreement, brief description of the property, and general intent of the parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Demised Premises: Detailed description of the leased property, including floor area, boundaries, and included facilities

5. Lease Term: Duration of the lease, commencement date, and expiry date

6. Rent and Payment Terms: Rental amount, payment schedule, method of payment, and late payment consequences

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

8. Permitted Use: Specified authorized uses of the premises and any restrictions

9. Maintenance and Repairs: Responsibilities of both parties regarding property maintenance and repairs

10. Utilities and Services: Responsibilities for utility payments and service charges

11. Insurance: Required insurance coverage for both parties

12. Assignment and Subletting: Terms and conditions for transferring or subletting the premises

13. Termination: Grounds and procedures for early termination

14. Governing Law: Specification of Indonesian law as governing law

15. Dispute Resolution: Procedures for resolving disputes between parties

What sections are optional to include in a Commercial Lease Contract?

1. Fit-out Works: Used when tenant improvements or modifications are permitted, detailing approval process and conditions

2. Option to Renew: Include when parties agree to potential lease extension terms

3. Break Clause: Include when either party has the right to terminate early under specific conditions

4. Force Majeure: Detailed provisions for unforeseen circumstances, particularly relevant post-COVID

5. Green Building Requirements: Include for properties with specific environmental certifications or requirements

6. Signage Rights: Include when tenant has specific rights to display signage

7. Parking: Include when parking spaces are allocated as part of the lease

8. Common Areas: Include for multi-tenant buildings with shared facilities

9. Operating Hours: Include for properties with restricted operating hours

What schedules should be included in a Commercial Lease Contract?

1. Floor Plan: Detailed plan showing the leased premises and measurements

2. Inventory: List of fixtures, fittings, and equipment included in the lease

3. Service Charges: Breakdown of service charges and calculation method

4. Building Rules and Regulations: Detailed rules for use of the building and common areas

5. Fit-out Guidelines: Technical specifications and requirements for any tenant improvements

6. Handover Condition Report: Detailed description of property condition at commencement

7. Form of Bank Guarantee: Standard format for bank guarantee if required instead of cash deposit

8. Insurance Requirements: Detailed specifications of required insurance coverage

9. Environmental Requirements: Specific environmental and sustainability requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Rental Agreement

Cost

Free to use

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