Formal Lease Agreement Template for Indonesia

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Key Requirements PROMPT example:

Formal Lease Agreement

"I need a Formal Lease Agreement for a three-story commercial building in Jakarta's Central Business District, starting from March 1, 2025, with special provisions for multinational company tenants and the option to renew for two additional years."

Document background
The Formal Lease Agreement serves as a legally binding document under Indonesian jurisdiction, essential for establishing a structured landlord-tenant relationship in both commercial and residential contexts. This document is particularly important given Indonesia's unique property rights system and specific requirements under the Civil Code (KUHPerdata). Used when parties need to formalize a property lease arrangement, the agreement comprehensively covers all aspects of the lease relationship, including property usage rights, payment terms, maintenance obligations, and dispute resolution mechanisms. The document must comply with local property regulations, building laws, and, where applicable, foreign investment restrictions. The Formal Lease Agreement is crucial for protecting both parties' interests and ensuring clarity in their respective rights and obligations throughout the lease term.
Suggested Sections

1. Parties: Identification and details of the Lessor (property owner) and Lessee (tenant), including their legal names, addresses, and any registration numbers for companies

2. Background: Context of the lease agreement, brief description of the property, and the parties' intention to enter into a lease arrangement

3. Definitions: Definitions of key terms used throughout the agreement to ensure clarity and prevent misinterpretation

4. Property Details: Comprehensive description of the leased property, including address, boundaries, and building specifications

5. Lease Term: Duration of the lease, commencement date, and end date

6. Rent and Payment Terms: Rental amount, payment schedule, method of payment, and late payment consequences

7. Security Deposit: Amount of security deposit, terms of holding, and conditions for return

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

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

10. Utilities and Services: Responsibility for utility payments and services

11. Insurance: Required insurance coverage and responsibilities of each party

12. Default and Remedies: Events constituting default and available remedies for both parties

13. Termination: Grounds for termination and the process for ending the lease

14. Governing Law: Specification of Indonesian law as governing law and jurisdiction

15. Execution: Signature blocks and execution requirements

Optional Sections

1. Foreign Investment Provisions: Required when the lessee is a foreign entity or individual, addressing specific requirements under Indonesian foreign investment laws

2. Subletting and Assignment: Include when subletting or assignment rights are to be granted or specifically prohibited

3. Renovations and Alterations: Include when the tenant is permitted to make modifications to the property

4. Force Majeure: Specific provisions for unforeseen circumstances, particularly relevant in areas prone to natural disasters

5. Building Rules and Regulations: Required for properties in managed buildings or complexes

6. Option to Renew: Include when offering the tenant an option to extend the lease term

7. Right of First Refusal: Include when granting the tenant first right to purchase or lease additional space

8. Guarantor Provisions: Required when a guarantor is involved in guaranteeing the tenant's obligations

9. Language Provisions: Required when the agreement is bilingual (Indonesian and English)

Suggested Schedules

1. Schedule 1 - Property Floor Plan: Detailed floor plan and measurements of the leased property

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

3. Schedule 3 - Condition Report: Detailed report on the condition of the property at the start of the lease

4. Schedule 4 - Building Rules: Specific rules and regulations for the building or complex

5. Schedule 5 - Payment Schedule: Detailed breakdown of rent payments, deposits, and other fees

6. Schedule 6 - Maintenance Schedule: Schedule of regular maintenance activities and responsibilities

7. Appendix A - Required Permits: Copies of relevant permits and licenses

8. Appendix B - Insurance Certificates: Copies of required insurance policies

9. Appendix C - Power of Attorney: If applicable, power of attorney documentation for signing 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

Commercial Property

Residential Property

Retail

Office Space

Industrial

Hospitality

Healthcare

Education

Manufacturing

Warehousing

Technology

Financial Services

Professional Services

Food & Beverage

Entertainment

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Risk Management

Business Development

Property Management

Asset Management

Administration

Procurement

Relevant Roles

Property Manager

Real Estate Manager

Facilities Manager

Legal Counsel

Corporate Lawyer

Operations Director

Chief Financial Officer

Real Estate Agent

Property Developer

Asset Manager

Compliance Officer

Risk Manager

Business Development Manager

Contract Administrator

Leasing Manager

Property Administrator

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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