Commercial Sublease Agreement Template for Indonesia

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Key Requirements PROMPT example:

Commercial Sublease Agreement

"I need a Commercial Sublease Agreement for subletting a 500-square-meter retail space in a Jakarta shopping mall, with specific provisions for operating hours, signage rights, and the ability to make substantial fit-out modifications for a restaurant business starting March 2025."

Document background
The Commercial Sublease Agreement is essential for businesses in Indonesia seeking to optimize their leased space or adjust their property commitments. This document is typically used when an original tenant wishes to transfer partial or full use of their leased premises to another party while maintaining their relationship with the master landlord. The agreement must comply with Indonesian property laws, including the Civil Code (KUHPerdata) and relevant commercial property regulations. It includes detailed provisions covering rent, security deposits, maintenance obligations, and permitted use of the premises, while ensuring alignment with master lease terms. The document is particularly relevant in today's dynamic business environment where flexibility in commercial space utilization is crucial. It requires careful consideration of both local legal requirements and commercial practicalities to ensure enforceability and protection of all parties' interests.
Suggested Sections

1. Parties: Identification of the sublessor and sublessee, including their legal names, registration numbers, and authorized representatives

2. Background: Context of the sublease, including reference to the master lease and confirmation of sublessor's authority to sublease

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

4. Demised Premises: Detailed description of the subleased property, including its location, size, and permitted use

5. Term and Renewal: Duration of the sublease, commencement date, expiry date, and any renewal options

6. Rent and Security Deposit: Rental amount, payment schedule, security deposit requirements, and review mechanisms

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

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

9. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements

10. Insurance and Liability: Required insurance coverage and allocation of risks

11. Assignment and Further Subletting: Restrictions on assignment and further subletting of the premises

12. Termination: Grounds for termination and the process for ending the agreement

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

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

Optional Sections

1. Fit-out Works: Include when the sublessee is permitted to perform initial modifications to the premises

2. Trading Requirements: Include for retail premises with specific operating hour requirements or trading obligations

3. Environmental Obligations: Include when the property use involves environmental considerations or risks

4. Signage Rights: Include when the sublessee has specific rights to install external or internal signage

5. Parking: Include when parking facilities are part of the sublease

6. Common Areas: Include when the property is part of a larger complex with shared facilities

7. Force Majeure: Include specific provisions for unforeseen circumstances affecting property use

8. Break Clause: Include when early termination options are offered to either party

Suggested Schedules

1. Schedule 1 - Floor Plan: Detailed plans showing the demised premises and any exclusive or common areas

2. Schedule 2 - Master Lease Terms: Relevant excerpts from the master lease that affect the sublease

3. Schedule 3 - Inventory: List of any fixtures, fittings, or equipment included in the sublease

4. Schedule 4 - Service Charge Items: Detailed breakdown of service charges and calculation method

5. Schedule 5 - Building Rules: Building regulations and operational guidelines

6. Appendix A - Form of Bank Guarantee: Template for bank guarantee if required as security

7. Appendix B - Handover Protocol: Procedure and checklist for property handover

8. Appendix C - Fit-out Guidelines: Technical specifications and requirements for any permitted modifications

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

Retail

Commercial Real Estate

Office Space

Industrial

Hospitality

Food and Beverage

Healthcare

Education

Professional Services

Manufacturing

Logistics

Technology

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Property Management

Asset Management

Business Development

Administration

Relevant Roles

Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Commercial Director

Operations Manager

Business Development Manager

Finance Director

Compliance Officer

Asset Manager

Lease Administrator

Chief Operating Officer

General Manager

Contract 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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