Exclusive Lease Agreement Template for Indonesia

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Key Requirements PROMPT example:

Exclusive Lease Agreement

"I need an Exclusive Lease Agreement for a high-end retail space in Jakarta's Central Business District, ensuring no competing luxury fashion brands can operate within 500 meters of our location, with the lease term starting March 1, 2025."

Document background
The Exclusive Lease Agreement is a specialized legal instrument used in Indonesian commercial property transactions where a tenant requires protected rights to operate without direct competition in a specified location. This document is particularly crucial for businesses seeking to secure strategic locations while preventing competitors from establishing operations in the same vicinity. The agreement must comply with Indonesian property law, including the Civil Code (KUHPerdata) and Basic Agrarian Law, while addressing specific requirements for exclusive rights, permitted use, and territorial restrictions. It's commonly used in retail locations, shopping centers, and commercial districts where business positioning is crucial. The document includes comprehensive provisions for lease terms, exclusivity scope, competition restrictions, renewal options, and dispute resolution mechanisms, all structured to ensure enforceability under Indonesian jurisdiction.
Suggested Sections

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

2. Background: Context of the lease arrangement, property overview, and purpose of the exclusive arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including property, exclusive rights, permitted use, etc.

4. Grant of Lease: Formal grant of lease rights and explicit statement of exclusivity provisions

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

6. Rent and Payment Terms: Rental amount, payment schedule, security deposit, and payment methods

7. Exclusive Rights and Restrictions: Detailed scope of exclusive rights, territorial limitations, and restrictions on lessor

8. Permitted Use: Specified permitted uses of the property and any restrictions on use

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

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

11. Assignment and Subletting: Restrictions and conditions for assignment or subletting of the lease

12. Termination: Grounds for termination, notice requirements, and consequences of termination

13. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution mechanisms

14. Execution: Formal execution clause and signing requirements under Indonesian law

Optional Sections

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

2. Utilities and Services: Include when utilities are not included in rent or require special arrangements

3. Alterations and Improvements: Required when tenant plans significant modifications to the property

4. Environmental Compliance: Necessary for properties in environmentally sensitive areas or industrial use

5. Security Arrangements: Include for high-value properties or those requiring specific security measures

6. Foreign Investment Provisions: Required when lessee is a foreign entity, addressing Indonesian foreign investment requirements

7. Language Requirements: Dual language provisions required when one party is non-Indonesian

8. Operating Hours and Access: Relevant for commercial properties in shared or managed buildings

Suggested Schedules

1. Property Description: Detailed description of the leased property, including floor plans and boundaries

2. Rent Schedule: Detailed breakdown of rent payments, including escalation rates and review periods

3. Condition Report: Initial condition of the property with photographs and descriptions

4. Permitted Alterations: Pre-approved alterations or improvements that may be carried out

5. Building Rules: Applicable building rules and regulations, particularly for commercial properties

6. Maintenance Schedule: Detailed maintenance responsibilities and schedules for both parties

7. Exclusive Rights Details: Specific details of exclusive rights, including territorial maps if applicable

8. Required Permits: List of required governmental permits and licenses for the intended use

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

Industrial

Hospitality

Shopping Centers

Office Space

Manufacturing

Warehousing and Logistics

Food and Beverage

Entertainment

Healthcare

Education

Relevant Teams

Legal

Real Estate

Operations

Facilities Management

Commercial

Finance

Compliance

Property Management

Business Development

Asset Management

Retail Operations

Contract Administration

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Commercial Director

Operations Manager

Facilities Manager

Business Development Manager

Retail Operations Director

Asset Manager

Leasing Manager

Compliance Officer

Contract Administrator

Chief Financial Officer

Store Manager

Regional Manager

Property Development Director

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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