Document background
The Joint Partnership Agreement serves as a foundational document for establishing formal business partnerships in Indonesia, whether between domestic entities or involving foreign partners. This agreement is essential when two or more parties wish to combine their resources, expertise, and efforts to pursue common business objectives while maintaining separate legal identities. It addresses critical aspects required under Indonesian law, including capital structure, profit sharing, management control, and regulatory compliance. The document is particularly relevant in contexts where parties need a flexible partnership structure that's more formal than a loose collaboration but less rigid than a full merger or acquisition. It must comply with various Indonesian regulations, including the Investment Law, Company Law, and relevant sector-specific regulations, while also considering any foreign investment restrictions or requirements when international parties are involved.
