Commercial Property Rental Agreement Template for Indonesia

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Key Requirements PROMPT example:

Commercial Property Rental Agreement

"I need a Commercial Property Rental Agreement for a retail space in Jakarta's central business district, where our tech company will operate a flagship store, with the lease starting March 1, 2025, and including specific provisions for electronic equipment installation and 24/7 access."

Document background
The Commercial Property Rental Agreement is a vital legal instrument used in Indonesia for establishing a formal lease relationship between property owners and commercial tenants. This document is essential when any business entity seeks to rent commercial space for their operations, whether for retail, office, industrial, or other commercial purposes. It ensures compliance with Indonesian property law, including the Indonesian Civil Code (Kitab Undang-undang Hukum Perdata) and relevant building regulations. The agreement covers crucial aspects such as rental terms, maintenance obligations, permitted use, insurance requirements, and dispute resolution procedures, while also addressing specific local requirements such as notarization and registration where necessary. It serves as a comprehensive framework for protecting the interests of both landlord and tenant while ensuring legal compliance in the Indonesian commercial property market.
Suggested Sections

1. Parties: Identification of the landlord and tenant, including registration details for companies

2. Background: Context of the agreement and brief description of the property and intended use

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

4. Property Details: Detailed description of the leased premises, including address and specifications

5. Lease Term: Duration of the lease, commencement date, and any option periods

6. Rent and Security Deposit: Rental amount, payment terms, security deposit details, and review mechanisms

7. Service Charges and Utilities: Additional charges, including maintenance fees, utilities, and other operational costs

8. Use of Premises: Permitted use of the property and any restrictions

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

10. Insurance: Required insurance coverage for both parties

11. Alterations and Improvements: Rules regarding modifications to the property

12. Assignment and Subletting: Conditions under which the tenant may assign or sublet the property

13. Termination: Circumstances and procedures for early termination

14. Default and Remedies: Events of default and available remedies for both parties

15. Governing Law: Confirmation of Indonesian law application and jurisdiction

16. Execution: Signature blocks and execution requirements

Optional Sections

1. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in areas prone to natural disasters

2. Environmental Compliance: Required for properties where environmental regulations are particularly relevant

3. Parking: Include when parking facilities are part of the lease

4. Signage Rights: Include when external or building signage is permitted

5. Special Building Requirements: For properties in historic buildings or special zones with specific requirements

6. Foreign Investment Provisions: Required when tenant is a foreign entity

7. Fit-out Period: Include when tenant requires initial renovation period

8. Operating Hours: For properties in commercial complexes with restricted operating hours

9. Common Areas: For properties in multi-tenant buildings or complexes

Suggested Schedules

1. Schedule 1 - Property Floor Plan: Detailed floor plan showing the leased area and measurements

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

3. Schedule 3 - Service Charge Details: Breakdown of service charges and calculation method

4. Schedule 4 - Building Rules and Regulations: Specific rules governing the use of the property and common areas

5. Schedule 5 - Maintenance Schedule: Schedule of regular maintenance responsibilities

6. Schedule 6 - Handover Protocol: Procedures and checklist for property handover

7. Schedule 7 - Permitted Alterations: Pre-approved alterations or improvements

8. Appendix A - Required Licenses: List of necessary licenses and permits for property use

9. Appendix B - Insurance Requirements: Detailed insurance requirements for both parties

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 | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Retail

Hospitality

Office Space

Industrial

Warehousing

Healthcare

Education

Financial Services

Technology

Manufacturing

Logistics

Food and Beverage

Professional Services

Relevant Teams

Legal

Finance

Operations

Facilities Management

Real Estate

Risk and Compliance

Corporate Services

Business Development

Property Management

Asset Management

Administration

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Real Estate Manager

Facilities Manager

Property Manager

Legal Counsel

Commercial Director

Operations Manager

Business Development Manager

Asset Manager

Leasing Manager

Risk Manager

Compliance Officer

Finance Director

Corporate Services Manager

Regional Manager

Branch Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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