Long Term Lease Agreement Template for Indonesia

The Long Term Lease Agreement is a vital legal instrument used in Indonesia for establishing extended property leasing arrangements, typically spanning several years. This document is essential when parties seek to create a stable, long-term leasing relationship with clearly defined rights and obligations. It must comply with Indonesian property law, including the Basic Agrarian Law and relevant regional regulations. The agreement is particularly important for businesses requiring secure, long-term property rights and is commonly used in commercial, industrial, and large-scale residential projects. Special considerations are included when foreign entities are involved, as Indonesian law has specific requirements regarding foreign property rights. The document covers crucial aspects such as lease terms, payment structures, maintenance responsibilities, and dispute resolution mechanisms, all within the framework of Indonesian legal requirements.

1. Parties: Identification of the lessor and lessee with complete legal names, addresses, and registration details if companies

2. Background: Context of the lease agreement, including brief description of the property and parties' intention to enter into a long-term lease arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Property Details: Comprehensive description of the leased property, including address, boundaries, and certificate details

5. Lease Term: Duration of the lease, commencement date, and any renewal options

6. Rent and Payment Terms: Rental amount, payment schedule, security deposit, and payment methods

7. Rights and Obligations of the Lessor: Detailed listing of the property owner's responsibilities and rights

8. Rights and Obligations of the Lessee: Detailed listing of the tenant's responsibilities and rights

9. Permitted Use: Specified purposes for which the property may be used

10. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements

11. Insurance: Required insurance coverage and responsibilities

12. Default and Remedies: Events of default and corresponding remedies available to either party

13. Termination: Conditions and procedures for early termination

14. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictions

15. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration provisions

16. Notices: Methods and addresses for formal communications between parties

17. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments