Letter Of Intent Engineering Template for Indonesia

The Letter Of Intent Engineering is a crucial preliminary document used in Indonesian business practice when parties are seriously considering entering into an engineering services arrangement but need to establish initial terms and conduct due diligence before finalizing a binding agreement. It serves as a roadmap for negotiations while providing structure to the pre-contractual relationship, typically used in complex engineering projects where detailed assessment and planning are required before committing to a full contract. Under Indonesian law, particularly considering Law No. 11 of 2014 and related regulations, this document needs to address specific local requirements regarding engineering practices, professional qualifications, and potential foreign investment restrictions. The document typically precedes more comprehensive agreements like Engineering Services Agreements or Engineering, Procurement, and Construction (EPC) contracts, while providing protection for confidential information shared during negotiations.

1. Date and Parties: Identification of all parties involved, including full legal names, addresses, and company registration details as per Indonesian requirements

2. Background/Recitals: Context of the proposed engineering project, including brief history of discussions and current status

3. Definitions: Key terms used throughout the letter, ensuring clarity and avoiding misinterpretation

4. Project Overview: High-level description of the proposed engineering project, including basic scope and objectives

5. Proposed Timeline: General timeline for both the negotiation period and anticipated project execution

6. Confidentiality: Binding provisions regarding the confidential treatment of shared information

7. Due Diligence: Framework for information sharing and evaluation process

8. Exclusivity Period: If applicable, period during which parties agree not to negotiate with others

9. Non-Binding Nature: Clear statement that the LOI is non-binding except for specified sections

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

11. Signatures: Execution block for authorized representatives of all parties