Document background
The Investment Framework Agreement serves as the master document governing investment relationships in Indonesia, typically used when parties contemplate single or multiple investment transactions over time. It provides the overarching structure for future investments while ensuring compliance with Indonesian investment laws, including Law No. 25 of 2007 and the Positive Investment List (Presidential Regulation No. 10 of 2021). The document is essential for both foreign and domestic investors planning to invest in Indonesian companies, particularly when dealing with regulated sectors or when multiple investment rounds are anticipated. It addresses key aspects such as investment mechanics, corporate governance, regulatory compliance, and risk allocation, while incorporating necessary safeguards for both investors and local partners. The agreement is designed to accommodate various investment structures while ensuring alignment with Indonesian foreign ownership restrictions and local partnership requirements.
