Mou Form Template for Indonesia

The MoU Form under Indonesian law is a crucial document used in the initial stages of business relationships and collaborations. It serves as a stepping stone toward more comprehensive agreements, allowing parties to document their preliminary understanding while maintaining flexibility. This document type is particularly valuable in the Indonesian business context, where relationship-building and gradual commitment are important cultural aspects of business dealings. The MoU typically includes both binding elements (such as confidentiality and governing law provisions) and non-binding elements (such as commercial terms), making it suitable for various business arrangements from joint ventures to strategic partnerships. It must comply with Indonesian Civil Code requirements while remaining adaptable to different business contexts and sectors. The document is especially useful when parties need to formalize their intentions and basic understanding before committing resources to detailed due diligence or final agreement negotiations.

1. Parties: Identification of all parties to the MoU, including full legal names, addresses, and company registration details as required under Indonesian law

2. Background: Recitals explaining the context and purpose of the MoU, including the parties' intentions to explore a potential business relationship

3. Definitions: Key terms used throughout the MoU, ensuring clarity and consistent interpretation

4. Scope of Cooperation: General outline of the proposed collaboration or business relationship

5. Roles and Responsibilities: High-level description of each party's expected contributions and responsibilities

6. Term and Termination: Duration of the MoU and circumstances under which it can be terminated

7. Confidentiality: Basic confidentiality obligations regarding information shared during discussions

8. Non-Binding Provisions: Clear statement of which provisions are non-binding, typically the commercial terms

9. Binding Provisions: Identification of legally binding provisions, typically confidentiality and governing law

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

11. Signatures: Execution block for authorized representatives of each party