Joint Development Agreement (Real Estate) Template for Indonesia

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Key Requirements PROMPT example:

Joint Development Agreement (Real Estate)

"I need a Joint Development Agreement (Real Estate) for a mixed-use development project in Jakarta between a local landowner and a Singapore-based developer, with construction planned to start in March 2025 and including specific provisions for foreign investment compliance and profit-sharing arrangements."

Document background
The Joint Development Agreement (Real Estate) is a crucial document used in Indonesian property development projects where multiple parties collaborate to develop real estate assets. This agreement is particularly relevant in situations where one party contributes land while another brings development expertise and/or capital. It must comply with Indonesia's Basic Agrarian Law, building regulations, and investment laws, especially concerning foreign investment restrictions in property development. The document typically includes detailed provisions for project execution, profit sharing, risk allocation, and regulatory compliance, while addressing specific Indonesian requirements for land rights, building permits, and environmental approvals. It's commonly used in commercial, residential, or mixed-use development projects and requires careful consideration of local spatial planning regulations and community interests.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement, including their legal status and registration details

2. Background: Context of the development project, including the property details and parties' intentions

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Project Scope: Detailed description of the development project, including location, specifications, and development phases

5. Land Rights and Ownership: Details of land ownership, transfer mechanisms, and rights structure

6. Parties' Contributions: Specific contributions from each party (land, capital, expertise, etc.)

7. Development obligations: Detailed responsibilities of each party in executing the development

8. Financial Terms: Financial arrangements, profit sharing, and payment mechanisms

9. Project Timeline: Development schedule, milestones, and completion requirements

10. Permits and Approvals: Responsibility for obtaining necessary permits and regulatory approvals

11. Project Management: Management structure, decision-making processes, and reporting requirements

12. Representations and Warranties: Standard representations and warranties from each party

13. Risk Allocation: Distribution of risks between parties and risk management procedures

14. Default and Termination: Events of default, remedies, and termination procedures

15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignments

Optional Sections

1. Marketing and Branding: Used when the agreement needs to address project marketing responsibilities and brand usage

2. Environmental Compliance: Detailed section needed when the project has significant environmental impacts or requirements

3. Community Relations: Required when the project needs specific provisions for managing community interests and social impact

4. Foreign Investment Provisions: Included when one or more parties are foreign investors

5. Intellectual Property: Required when the development involves significant IP elements like branded residences

6. Force Majeure: Detailed provisions for force majeure events, particularly relevant in long-term developments

7. Pre-sales Requirements: Included when the agreement requires minimum pre-sales before construction commencement

Suggested Schedules

1. Property Details: Detailed description of the land, including certificates, boundaries, and existing encumbrances

2. Development Plans: Architectural plans, specifications, and development concepts

3. Project Budget: Detailed cost estimates and budget breakdown

4. Construction Schedule: Detailed timeline for construction phases and milestones

5. Required Permits: List of required permits and approvals with responsibilities

6. Profit Sharing Mechanism: Detailed calculations and examples of profit-sharing arrangements

7. Form of Subsidiary Agreements: Templates for related agreements such as construction contracts

8. Technical Specifications: Detailed technical requirements and standards for the development

9. Environmental Management Plan: Environmental protection measures and compliance requirements

10. Power of Attorney: Standard form of power of attorney for various project requirements

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

Construction

Property Development

Infrastructure

Urban Planning

Hospitality

Retail

Commercial Property

Residential Development

Mixed-Use Development

Relevant Teams

Legal

Real Estate Development

Project Management

Construction

Finance

Compliance

Business Development

Risk Management

Operations

Property Management

Investment

Relevant Roles

Chief Executive Officer

Chief Legal Officer

Real Estate Development Director

Project Manager

Legal Counsel

Property Development Manager

Investment Director

Construction Manager

Land Acquisition Manager

Compliance Officer

Finance Director

Urban Planning Director

Business Development Manager

Risk Manager

Operations Director

Industries
Indonesian Civil Code (KUHPerdata): Provides the fundamental legal framework for contracts and agreements in Indonesia, including formation, validity, and enforcement of contracts
Law No. 5 of 1960 (Basic Agrarian Law): Fundamental law governing land rights and ownership in Indonesia, crucial for real estate development projects
Law No. 28 of 2002 on Buildings: Regulates building construction, safety standards, permits, and technical requirements for development projects
Law No. 25 of 2007 on Investment: Governs investment activities in Indonesia, including foreign investment in real estate development projects
Law No. 32 of 2009 on Environmental Protection and Management: Establishes requirements for environmental impact assessments and environmental permits for development projects
Government Regulation No. 16 of 2021 on Building Management: Implements technical regulations for building construction, maintenance, and utilization
Presidential Regulation No. 44 of 2016: Lists business sectors open and closed to foreign investment, including provisions for real estate development
Regional Spatial Planning Laws (RTRW): Local regulations governing land use, zoning, and development planning in specific regions
Minister of Agrarian Affairs Regulation No. 9 of 1999: Regulates procedures for granting and registration of land rights, essential for development projects
Law No. 11 of 2020 (Omnibus Law): Recent comprehensive law affecting various aspects of business, including property development and licensing procedures
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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