Equipment Use Agreement Template for Indonesia

An Equipment Use Agreement is a legal contract that establishes the terms and conditions under which equipment is made available for use by another party in Indonesia. This document creates a formal arrangement between equipment owners and users, ensuring both parties understand their rights, responsibilities, and obligations under Indonesian law, particularly the Civil Code (KUHPerdata) and relevant sector-specific regulations.

When do you need this document?

You need an Equipment Use Agreement when providing or accessing specialized equipment for business operations, research activities, or commercial purposes. This includes situations where manufacturing companies share industrial machinery, healthcare facilities lease medical equipment, construction companies provide heavy machinery to contractors, or research laboratories grant access to scientific instruments. The agreement is also essential when educational institutions allow external parties to use laboratory equipment, mining companies share extraction machinery, or agricultural businesses provide farming equipment to other operators. Any scenario involving valuable, specialized, or potentially hazardous equipment requires this formal legal arrangement to protect all parties involved.

Key legal considerations

Under Indonesian law, your Equipment Use Agreement must clearly define permitted uses, operational limitations, and safety protocols to comply with consumer protection and labor regulations. The document should specify maintenance responsibilities, insurance requirements, and liability allocation to protect against equipment damage, personal injury, or operational failures. Include detailed equipment descriptions, serial numbers, and technical specifications to avoid disputes. Address termination conditions, return procedures, and consequences for misuse or violation of terms. Consider intellectual property protections if the equipment involves proprietary technology, and ensure compliance with equipment labeling and technical specification requirements under Minister of Trade Regulation No. 67/M-DAG/PER/11/2013.

Legal requirements in Indonesia

Indonesian law requires Equipment Use Agreements to comply with the Civil Code's contract formation principles, ensuring mutual consent, lawful purpose, and adequate consideration. If the equipment user is a consumer, the agreement must comply with Law No. 8 of 1999 on Consumer Protection, providing safeguards regarding equipment quality and safety standards. For electronic equipment or electronically executed contracts, follow Government Regulation No. 82 of 2012 on Electronic Systems and Transactions. When equipment use involves workers, ensure compliance with Law No. 13 of 2003 on Labor regarding workplace safety and employee protection. The agreement must be written in Indonesian or accompanied by certified translations, and parties should consider notarization for high-value equipment arrangements to ensure enforceability under Indonesian courts.