Document background
The Letter of Intent Non Binding serves as a crucial preliminary document in Indonesian business transactions, commonly used when parties wish to formalize their initial discussions and outline the framework for future negotiations without creating legally binding obligations. This document type is particularly relevant in Indonesia's civil law system, where it helps establish clear parameters for negotiations while maintaining flexibility. It typically includes proposed transaction structures, timelines, and any specific binding provisions (such as confidentiality) while explicitly stating its generally non-binding nature. The document is especially useful in cross-border transactions involving Indonesian entities, helping bridge different business cultures and legal systems while complying with Indonesian law principles, particularly those found in the Civil Code (KUHPerdata).
