Lease Extension Agreement Template for Indonesia

This document serves as a legal instrument under Indonesian law to extend an existing lease agreement between a lessor and lessee. It incorporates essential elements required by the Indonesian Civil Code (KUHPerdata) and relevant property regulations, specifically addressing the continuation of a lease arrangement. The agreement outlines updated terms including the extended duration, revised rental payments, and any modifications to the original lease terms, while ensuring compliance with local property laws and regulations. It includes necessary provisions for both commercial and residential properties, incorporating requirements for proper execution under Indonesian law including witness signatures.

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What is a Lease Extension Agreement?

The Lease Extension Agreement is a crucial document used when parties wish to continue an existing lease arrangement in Indonesia beyond its original term. This document is essential when both parties agree to extend their landlord-tenant relationship but may want to update certain terms such as rental rates, duration, or other conditions. It must comply with Indonesian Civil Code requirements and property regulations, including proper execution procedures and witness requirements. The agreement should reference the original lease while clearly stating any modifications for the extension period. It's commonly used in both commercial and residential contexts, requiring careful attention to specific regulations depending on the property type and intended use. The document typically includes updated terms, confirmation of existing conditions, and any new requirements that have emerged since the original lease was signed.

What sections should be included in a Lease Extension Agreement?

1. Parties: Identification of the Lessor and Lessee with complete legal names and addresses

2. Background: Details of the original lease agreement, including its date, term, and property description, and the parties' intention to extend the lease

3. Definitions: Key terms used in the agreement, including references to defined terms from the original lease agreement

4. Extension Term: Specific details of the extension period, including start and end dates

5. Rent and Payment Terms: Updated rental amount, payment schedule, and any adjustments to the payment terms

6. Confirmation of Original Terms: Statement confirming which terms from the original lease remain in effect

7. Representations and Warranties: Confirmations from both parties regarding their authority and capacity to extend the lease

8. Governing Law: Confirmation that Indonesian law governs the agreement

9. Execution: Signature blocks and execution requirements

What sections are optional to include in a Lease Extension Agreement?

1. Modified Terms: Any specific changes to the original lease terms, to be included if terms other than duration and rent are being modified

2. Property Improvements: Details of any authorized improvements or modifications to the property, include if renovations or changes are planned

3. Security Deposit Adjustment: Changes to security deposit requirements, if applicable

4. Insurance Requirements: Updated insurance obligations, if different from original lease

5. Break Clause: Early termination provisions, if agreed upon for the extension period

6. Option for Further Extension: Terms for any additional future extensions, if agreed

What schedules should be included in a Lease Extension Agreement?

1. Schedule 1 - Original Lease Agreement: Copy of the original lease agreement being extended

2. Schedule 2 - Property Description: Updated description of the leased property, including any modifications since original lease

3. Schedule 3 - Rent Payment Schedule: Detailed breakdown of rent payments for the extension period

4. Schedule 4 - Condition Report: Current condition of the property at the time of extension

5. Schedule 5 - Modified Terms: Detailed list of any modifications to original lease terms

6. Appendix A - Required Permits: Copies of any new or renewed permits required for the extension period

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

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Rental Agreement

Cost

Free to use

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