Property Tenancy Agreement Template for Indonesia

The Property Tenancy Agreement serves as a vital legal instrument in Indonesian real estate transactions, establishing the formal relationship between property owners and tenants. This document is essential when any party wishes to lease out or rent property in Indonesia, whether for residential or commercial purposes. It must comply with the Indonesian Civil Code (KUHPerdata), Law No. 1 of 2011 on Housing and Settlement Areas, and various regional property regulations. The agreement typically includes comprehensive details about the property, rental terms, payment schedules, maintenance obligations, and dispute resolution procedures. It's particularly important given Indonesia's specific requirements regarding property rental, especially concerning foreign tenants and commercial leases. The Property Tenancy Agreement should be drafted with careful consideration of local customs and practices while ensuring all legal requirements are met.

1. Parties: Identification and details of the landlord and tenant, including their legal addresses and any registration numbers

2. Background: Context of the agreement and brief description of the property being leased

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

4. Property Details: Detailed description of the leased property, including address and boundaries

5. Term and Renewal: Duration of the lease, commencement date, and renewal terms

6. Rent and Payment Terms: Rental amount, payment schedule, method of payment, and late payment consequences

7. Security Deposit: Amount, terms of holding, and conditions for return of the security deposit

8. Utilities and Service Charges: Responsibility for utility payments and service charges

9. Use of Property: Permitted use of the property and any restrictions

10. Maintenance and Repairs: Responsibilities of both parties regarding property maintenance and repairs

11. Landlord's Obligations: Specific duties and responsibilities of the landlord

12. Tenant's Obligations: Specific duties and responsibilities of the tenant

13. Insurance: Required insurance coverage and responsibilities

14. Default and Remedies: Events of default and available remedies for both parties

15. Termination: Conditions and procedures for early termination

16. Governing Law: Specification of Indonesian law as governing law and jurisdiction

17. Notices: Process and addresses for formal communications between parties

18. Execution: Signature blocks and execution requirements