Document background
A Letter of Intent of Transfer is commonly used in Indonesian business transactions as a preliminary step before executing a definitive transfer agreement. It serves to document the parties' serious intention to proceed with a transfer while allowing for due diligence and further negotiation. The document typically includes key commercial terms, conditions precedent, and any binding provisions such as confidentiality and exclusivity. While primarily non-binding, it must comply with Indonesian legal requirements, particularly the Civil Code (Kitab Undang-undang Hukum Perdata) and relevant sector-specific regulations. It's especially useful in complex transfers where parties need to establish clear parameters before proceeding with detailed due diligence and final documentation.
