Joint Venture Mou Template for Indonesia

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Key Requirements PROMPT example:

Joint Venture Mou

"I need a Joint Venture MOU under Indonesian law for a proposed collaboration between our tech company and a local Indonesian manufacturer to develop and produce electric vehicles, with the intention to complete definitive agreements by March 2025."

Document background
The Joint Venture MOU is a crucial preliminary document used in Indonesia when two or more parties intend to establish a joint venture business relationship. It serves as a roadmap for negotiations and subsequent definitive agreements, capturing the parties' initial understanding while maintaining flexibility. This document type is particularly important in the Indonesian context due to specific regulatory requirements for foreign investment, company establishment, and sector-specific regulations. The Joint Venture MOU typically includes proposed shareholding structures, management arrangements, and key commercial terms while ensuring compliance with Indonesian investment laws and regulations. It is commonly used during the initial stages of business collaboration, particularly when parties need to conduct due diligence, obtain regulatory approvals, or secure internal corporate authorizations before proceeding with a binding joint venture agreement.
Suggested Sections

1. Parties: Identification of all parties to the MOU, including their legal names, registration numbers, and addresses

2. Background: Context of the proposed joint venture, including business rationale and objectives

3. Definitions: Key terms used throughout the MOU

4. Scope of Cooperation: Overview of the proposed joint venture business and intended collaboration areas

5. Proposed Structure: Basic structure of the joint venture, including proposed shareholding ratios and management framework

6. Key Responsibilities: Primary responsibilities and contributions of each party

7. Timeline: Proposed timeline for negotiation, due diligence, and execution of definitive agreements

8. Confidentiality: Obligations regarding confidential information exchanged during negotiations

9. Exclusivity: Period during which parties agree not to negotiate with other potential partners

10. Costs: How costs related to negotiations and due diligence will be borne

11. Governing Law: Specification of Indonesian law as governing law

12. Language: Specification of document language(s), ensuring compliance with Law No. 24 of 2009

13. Term and Termination: Duration of the MOU and circumstances for termination

Optional Sections

1. Initial Business Plan: High-level overview of proposed business operations, used when parties have already aligned on basic business strategy

2. Regulatory Approvals: List of required regulatory approvals, included when the joint venture will operate in regulated sectors

3. Break Fee: Provisions for compensation if one party terminates negotiations, used in high-value or strategic transactions

4. Dispute Resolution: Detailed dispute resolution mechanisms, included when parties want more structured conflict resolution processes

5. Anti-Corruption Compliance: Specific anti-corruption commitments, included when one or more parties have strict compliance requirements

6. Environmental and Social Responsibility: Principles for environmental and social governance, included when relevant to the industry or parties' policies

Suggested Schedules

1. Schedule 1 - Initial Contribution List: Preliminary list of assets, resources, or capital to be contributed by each party

2. Schedule 2 - Key Commercial Terms: Summary of main commercial terms agreed in principle

3. Schedule 3 - Implementation Timeline: Detailed timeline for key milestones up to definitive agreements

4. Schedule 4 - Required Approvals: List of regulatory and corporate approvals needed

5. Appendix A - Initial Structure Chart: Proposed corporate and ownership structure diagram

6. Appendix B - List of Definitive Agreements: List of agreements to be negotiated and executed

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

Manufacturing

Natural Resources

Infrastructure

Technology

Agriculture

Real Estate

Financial Services

Energy

Mining

Telecommunications

Healthcare

Retail and Consumer Goods

Transportation and Logistics

Education

Tourism and Hospitality

Relevant Teams

Legal

Corporate Development

Finance

Strategy

Business Development

Mergers & Acquisitions

Risk Management

Compliance

Corporate Secretariat

International Operations

Investment

Relevant Roles

Chief Executive Officer

Managing Director

Chief Financial Officer

Legal Director

Head of Corporate Development

Business Development Director

Investment Manager

Corporate Secretary

Chief Operating Officer

Commercial Director

Strategy Director

Head of Mergers & Acquisitions

General Counsel

Risk Management Officer

Compliance Officer

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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