Commercial Rental Agreement Template for Indonesia

The Commercial Rental Agreement serves as a vital legal instrument in Indonesian business transactions, providing a structured framework for commercial property leasing arrangements. This document is essential when businesses seek to rent commercial spaces such as offices, retail outlets, warehouses, or industrial facilities in Indonesia. It must comply with Indonesian Civil Code requirements and local property regulations, incorporating provisions for rent, security deposits, maintenance obligations, and permitted commercial activities. The agreement protects both landlord and tenant interests while ensuring adherence to Indonesian building safety standards and commercial registration requirements. It's particularly important in urban centers like Jakarta, Surabaya, and other major Indonesian cities where commercial property transactions are frequent and require careful legal documentation.

1. Parties: Identifies and provides full details of the landlord and tenant, including registration numbers for companies

2. Background: Describes the context of the agreement, including brief description of the property and the parties' intention to enter into a commercial lease

3. Definitions: Defines key terms used throughout the agreement

4. Demised Premises: Detailed description of the rented property, including its boundaries and any shared areas

5. Term and Renewal: Specifies the duration of the lease and any renewal options

6. Rent and Payment Terms: Details the rent amount, payment schedule, and payment methods

7. Security Deposit: Specifies the security deposit amount, terms of holding, and conditions for return

8. Permitted Use: Defines the authorized commercial activities that can be conducted on the premises

9. Maintenance and Repairs: Outlines responsibilities for maintenance, repairs, and renovations

10. Utilities and Services: Specifies responsibility for utility payments and service arrangements

11. Insurance: Details required insurance coverage for both parties

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

13. Termination: Grounds and procedures for terminating the lease

14. Governing Law: Specifies Indonesian law as governing law and jurisdiction

15. Dispute Resolution: Procedures for resolving disputes between parties