The Letter Of Intent To Do Business is a crucial preliminary document in Indonesian business transactions, used when parties are in the early stages of exploring potential business relationships or transactions. It serves as a stepping stone towards more formal agreements while providing a structured framework for negotiations. This document type is particularly important in the Indonesian context, where business relationships often require careful cultivation and clear communication of intentions. The LOI typically includes key terms, proposed timelines, and any binding provisions (such as confidentiality), while remaining generally non-binding on the main business terms. It must comply with Indonesian legal requirements, including potential bilingual documentation requirements under Law No. 24 of 2009, and often precedes more detailed due diligence and definitive agreements.

1. Date and Parties: Full legal names and addresses of all parties involved

2. Introduction/Purpose: Brief statement of the parties' intention to explore a business relationship

3. Background: Context of the potential business relationship and brief description of each party's business

4. Proposed Transaction: Overview of the contemplated business arrangement or transaction

5. Key Terms: Outline of the principal terms and conditions being considered

6. Timeline: Proposed schedule for negotiations, due diligence, and potential transaction completion

7. Confidentiality: Basic confidentiality provisions regarding the discussions and shared information

8. Non-Binding Nature: Clear statement about which provisions are non-binding, typically all except confidentiality and exclusivity if included

9. Governing Law: Specification of Indonesian law as the governing law

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