Document background
The Memorandum Of Understanding Between Partners is a crucial document used in Indonesian business practice when two or more parties wish to formalize their intention to enter into a partnership arrangement without immediately creating legally binding obligations for all terms. It serves as a stepping stone towards more detailed agreements while establishing key principles of cooperation. This document type is particularly relevant in Indonesia's business environment, where relationship-building and gradual formalization of partnerships are common practice. It must comply with Indonesian Civil Code requirements and often needs to be drafted in both Indonesian and English languages as per Presidential Regulation No. 63 of 2019. The MoU typically includes basic terms of cooperation, resource commitments, confidentiality provisions, and general partnership principles while leaving room for future detailed agreements.
