Project Development Agreement Template for Indonesia

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Key Requirements PROMPT example:

Project Development Agreement

"I need a Project Development Agreement under Indonesian law for a mixed-use commercial complex in Jakarta, with construction starting March 2025, involving a foreign developer and local landowner, with specific attention to environmental compliance and community benefits."

Document background
The Project Development Agreement serves as the primary contractual framework for implementing development projects in Indonesia. It is essential for projects requiring structured development approaches, particularly in sectors such as infrastructure, real estate, industrial facilities, and energy. The agreement must comply with Indonesian investment laws, construction regulations, and environmental requirements while addressing local content rules and community interests. This document is typically used when multiple stakeholders are involved in a significant development project, requiring clear delineation of roles, responsibilities, and risk allocation. It includes provisions for regulatory compliance, project execution, financing arrangements, and dispute resolution mechanisms, all within the context of Indonesian legal requirements and business practices.
Suggested Sections

1. Parties: Identification of all contracting parties, including full legal names and addresses

2. Background: Context of the agreement, project overview, and parties' intentions

3. Definitions and Interpretation: Detailed definitions of terms used in the agreement and rules of interpretation

4. Project Scope: Detailed description of the project, including location, purpose, and key components

5. Development Phases and Timeline: Breakdown of project phases, milestones, and completion deadlines

6. Rights and Obligations: Detailed responsibilities of each party during the development process

7. Financial Terms: Payment terms, development costs, and financial obligations of parties

8. Regulatory Compliance: Compliance requirements with Indonesian laws, permits, and approvals

9. Performance Standards: Quality standards, specifications, and acceptance criteria

10. Risk Allocation: Distribution of risks between parties and risk management procedures

11. Force Majeure: Events constituting force majeure and consequences

12. Insurance and Indemnification: Insurance requirements and indemnification obligations

13. Default and Termination: Events of default, remedies, and termination procedures

14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

15. Confidentiality: Protection of confidential information and trade secrets

16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Government Participation: Required when government entities are stakeholders or when project requires government guarantees

2. Land Acquisition: Include when the project involves land acquisition or land use rights

3. Local Content Requirements: Required for projects subject to Indonesian local content regulations

4. Financing Arrangements: Include when project involves external financing or specific funding structures

5. Environmental and Social Impact: Required for projects with significant environmental or social impact

6. Community Engagement: Include when project requires significant community interaction or benefits

7. Technology Transfer: Required when project involves transfer of technology or intellectual property

8. Security Arrangements: Include when project requires specific security measures or arrangements

Suggested Schedules

1. Project Description and Specifications: Detailed technical specifications and scope of work

2. Development Schedule: Detailed timeline of all development phases and milestones

3. Payment Schedule: Breakdown of payment terms, amounts, and conditions

4. Required Permits and Approvals: List of all required regulatory permits and approvals

5. Technical Standards: Applicable technical standards and requirements

6. Site Plan and Drawings: Technical drawings, site plans, and design documents

7. Environmental Management Plan: Environmental protection and management procedures

8. Form of Performance Bond: Template for performance security documentation

9. Insurance Requirements: Detailed insurance coverage requirements

10. Key Personnel: List of key personnel and their responsibilities

11. Forms of Certificates: Templates for various certificates including completion certificates

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Real Estate Development

Infrastructure

Energy

Industrial Development

Commercial Development

Tourism and Hospitality

Mixed-use Development

Technology Parks

Healthcare Facilities

Educational Facilities

Transportation

Manufacturing

Renewable Energy

Mining

Ports and Maritime

Relevant Teams

Legal

Project Development

Operations

Business Development

Risk and Compliance

Finance

Construction Management

Technical Services

Environmental and Social Impact

Government Relations

Procurement

Contract Administration

Relevant Roles

Project Director

Legal Counsel

Development Manager

Contract Manager

Chief Executive Officer

Chief Operating Officer

Project Manager

Construction Manager

Risk Manager

Compliance Officer

Investment Director

Business Development Director

Technical Director

Environmental Manager

Financial Controller

Operations Director

Industries
Indonesian Civil Code (KUHPerdata): Provides the fundamental legal framework for contracts and agreements in Indonesia, including formation, validity, and enforcement of contracts
Law No. 25 of 2007 on Investment: Regulates both domestic and foreign investment in Indonesia, including investment requirements, permitted business fields, and investor protections
Law No. 2 of 2017 on Construction Services: Governs construction services, including project implementation, safety standards, and professional requirements for construction services
Law No. 32 of 2009 on Environmental Protection and Management: Mandates environmental impact assessments and environmental permits for development projects
Law No. 23 of 2014 on Regional Government: Defines authority of regional governments in issuing permits and overseeing development projects within their jurisdiction
Law No. 2 of 2012 on Land Procurement: Regulates land acquisition for development projects in the public interest
Law No. 13 of 2003 on Manpower: Governs employment relationships, working conditions, and labor requirements for project implementation
Government Regulation No. 24 of 2018 on Online Single Submission: Regulates business licensing procedures and requirements through the integrated electronic system
Law No. 28 of 2002 on Buildings: Provides requirements for building construction, including technical planning, permits, and building standards
Law No. 40 of 2007 on Limited Liability Companies: Governs corporate structures and requirements if the project involves establishment of project companies
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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